A security deposit is money given to the landlord as evidence that rent will be paid and the duties of then tenant will be carried out (that is, damage caused by tenant will be repaired, lease agreement will be honored, etc). State laws governing security deposits vary, but a general guide is helpful. 

 

The distinction must be made between a security deposit and last month’s rent, because they are not the same thing. The last month’s rent and a security deposit are often the same amount of money, that is, the cost of a single month. Some states limit them to this amount. 

 

If the rent rises, the landlord can correspondingly raise both the security deposit and the last month’s rent, requiring the tenant to pay the difference between the original price and the raised price. If the landlord wishes to shift the use of one for the other, the tenant must agree to this transfer. In the same way, the tenant cannot use the last month’s rent as the security deposit. 

 

The tenant is entitled to receive a receipt upon paying the last month’s rent and/or security deposit. Many states require that the landlord provide this and the tenant should ask for one, regardless of if it is required by law. Receipts should contain certain information, including:

 

-the total quantity paid

-the date upon which the money was received

-the purpose of the payment

-the name of the person who received the payment

-in the event that an agent is involved, the name of the landlord

-the signature of the landlord or agent

 

The tenant should receive a statement stating if interest is to be paid on the amount of the last month’s rent. At the end of the tenancy period, the tenant should give the landlord an address to which the deposit and interest could be sent. It is important to note that some states require landlord’s to pay interest on BOTH the last month’s rent and security deposit. 

 

There is a fixed period of time within which the landlord must return the security deposit; it is usually thirty days after the tenancy period concludes. From this, landlords can typically deduct for both unpaid rent and unreasonable damages caused by the tenant (pet damage is included in this). Everyday wear on property, resulting from normal use, cannot be deducted, though the tenant is obviously responsible for ensuring that the premises remains clean. 

 

In the case that unreasonable damages to the premises are found, the landlord has thirty days from the end of the tenancy to provide the former tenant with a statement including:

 

-A detailed list of damages, including not simply what they are, but also their type, degree, and what is necessary to repair them.

-Proof of the above statements, such as estimates or bills for the actual repair.

 

 After all deductions are made, the landlord must return the balance of the security deposit. Failure to do so, with proper interest, within the thirty days (or timeframe determined by the state) opens the landlord up for legal action on the part of the tenant. Similarly, the tenant could sue the landlord if the landlord took deductions but failed to provide the itemized list within the specified period of time. 

 

One of the things that it is important to consider upon moving in to a new apartment is the protection of your security deposit. Some simple steps before moving your property in can save you from headaches and hours of frustrating disputes when you eventually move out. 

 

Though you ideally did it before signing the lease, you should give your unit a thorough examination before moving in your property (as it is a lot easier to spot problems without your stuff getting in the way). The key is to look for things that are not immediately apparent, such as the water pressure, and the drainage in sinks and showers, the functioning of appliances, the state of the floors and pads under the carpet. 

 

Findings should be catalogued thoroughly with a checklist; the more you include, the less likelihood there is that you will be blamed for something that was not your fault. Furthermore, the more specific you are, the better (that is, instead of saying that the floor is damaged, say that there are 10 inch long scratches in the back corner of the room). Some states require a landlord to provide the tenant with a statement of the unit’s condition at the time of move-in, including a list of damages. If this is not provided you should create it yourself. It would be best if you go over the list with the landlord, to prevent later discrepancies. If this is not possible, having a witness review the findings with you is the next best option. Upon completing the list, both you and the landlord should sign it, and both parties should be given copies for the record. 

 

Finally, it may be wise to document your findings by means of photograph or video. Photographs should include an accurate time stamp (or at lest write the date on the back) and when videoing, you should make sure that you say the specific time and date. Upon receiving the photographs or finishing the video, a COPY should be sent to the landlord, so that it does not appear that you made them at the end of your stay, rather than the beginning. You should do this again when moving out.