Can the landlord keep the security deposit?
In addition to the first month’s rent, tenants typically pay a security deposit when they move into a rental property, which is returned to the tenant when they move out.
Assuming the tenant has complied with the conditions of the lease agreement, this deposit will be returned to them at the end of the lease term as per the rental agreement. Study the most frequent cases where a tenant’s security deposit is withheld in whole or in part.
A security deposit is defined
Whenever you move into a new apartment, the landlord will need you to pay a security deposit. In Australia, the bond (also known as a security deposit) is typically equal to three times the annual rent.
Damages to the rental property are one reason why a security deposit is required of tenants. Things that don’t come up in everyday life like broken glass or doors, heavy staining or anything that was made by force. Your security deposit serves as insurance for the landlord.
Tenants are entitled to get their security deposits back from their landlords if they return the property in the same or better condition than when they moved in. Landlords have the right to deduct repair costs from a security deposit in the event of severe wear and tear.
State Laws Vary Regarding Security Deposits
When deciding whether or not to preserve a tenant’s security deposit, you should carefully review the state’s security deposit rules. Tenants in many states, however, should not count on getting their deposits back for the same reasons.
Lease violations such as not paying rent or moving out early, major property damage, and excessive cleaning expenses all fall under this category and landlord cover the costs from security deposit.
Lease Termination
Landlords have the right to retain all or a portion of a tenant’s security deposit in the event of a lease violation.
Again, this will be subject to the specifics of your contract and the regulations in your jurisdiction governing landlord-tenant relationships. A tenant is bound by the conditions of an early termination clause if one was included in the lease they signed.
If the situation escalates to the point where you need to file a lawsuit against the renter, you may be allowed to add the expense of litigation and/or legal fees to the rent.
Failure to Pay Rent
When a renter fails to pay their weeks rent, you can keep all or part of their security deposit in the majority of states.
Generally speaking, you can keep the percentage of the security deposit that equals the amount of rent that the renter failed to pay.
Deterioration of Premises
A tenant’s damage to your property is another justification for keeping their security deposit. Property damage is distinct from ordinary deterioration. Some instances of each are listed below.
Everyday Use and Tear:
- The walls have a few little nail holes from hanging artwork.
- We noticed a couple of minor carpet spills.
- Tiles in the shower’s grout are beginning to show signs of mildew.
- Tacky grout
- corrosion of bathroom fixtures
- Cabinets with loose hinges or handles
- Moderate accumulations of soiling on the building’s structural components or its appliances
Damage:
- Large and numerous holes in the walls
- A carpet with massive holes or stains
- Major flooding causes extensive damage to hardwood floors.
- Inadequate or no wall plate protection
- Inadequate or nonexistent smoke and CO alarms
- Broken vanity or countertop
- Disassembled bathroom cabinet
- Several windows were broken.
- Missing hinges
- Failure to return keys at lease’s conclusion
- Price of Cleaning
- Common cleaning expenses are not covered by a tenant’s security deposit under usual circumstances. If a tenant’s pet regularly used the carpet as a toilet, the carpet would need to be replaced. The tenant could be charged for the price of carpet cleaning or replacement.
Services Not Paid for
If a tenant has not paid their utility bills, they may not receive their security deposit back. Tenants who fail to pay the utilities that they agreed to pay as part of the lease may have their security deposits withheld.
Briefly Summing Up
Keep in mind that a landlord’s ability to retain a security deposit is subject to the regulations of the state in which the rental property is located. Find out from the appropriate authorities if keeping the deposit is within your rights. An experienced real estate lawyer in your area should be familiar with the specifics.
