Security Deposit Disputes

The handling of security deposits, including the return of and deductions from security deposits, is often the subject of disputes and tension between landlords and tenants in rental properties. Upon the termination of a lease, the landlord is generally required to return a security deposit within a specified timeframe. If the landlord deducts amounts from the security deposit, those deductions must be itemized and justified, and they’re usually limited to unpaid rent or damages beyond normal wear and tear. Failing to comply with the law can result in penalties for landlords, including losing the right to keep all or a portion of the deposit.

Disagreements often arise from differing interpretations of the property’s condition, what constitutes normal wear and tear, and the appropriate use of deposit funds. Conducting detailed move-in and move-out inspections, along with photographic evidence, can provide an objective record of the property's condition and help prevent disagreements about damages.

Landlords who learn about security deposit laws can protect themselves from potential legal issues.