When Can a Landlord Keep a Security Deposit?

Use these links to jump to different sections:

• What Is a Security Deposit?
• When Do You Get Your Security Deposit Back?
• What Reasons Can a Landlord Keep My Deposit?
• What Can a Landlord Deduct from the Security Deposit?
• How Do I Get My Security Deposit Back?
• Find Experienced Legal Help

When renters sign a lease for a rental unit, the landlord often requires them to pay a security deposit. It can be frustrating for tenants, as this represents an additional upfront cost for securing housing. However, the security deposit plays an important role in the rental process. Landlords want to reduce the risk they take on, and a security deposit can do that. A tenant who understands how security deposits work and when a landlord can keep them will help tenants advocate for their rights.

What Is a Security Deposit?

A security deposit is a payment made by a tenant to a landlord as a form of insurance against damage or other issues. The landlord will require a security deposit payment as part of a rental agreement.

Typically, the tenant pays the security deposit when they pay the first month’s rent. This money is held during the course of the lease as risk protection for the landlord. Should the tenant cause damage to the property, the landlord can keep the deposit to help pay for the repairs. The landlord can also keep the security deposit to pay the monthly rent if the tenant fails to pay. If the tenant does not cause any damage or issues, the landlord returns the security deposit to the tenant.

Each state has its own landlord-tenant laws regulating how security deposits are handled. These rules include the amount of the security deposit when they can ask for one, when they can keep it, and the timeline for returning it. States also define how the landlord must hold the security deposit. Some require the money to be placed in an interest-bearing account, while others simply require a bank account.

When Do You Get Your Security Deposit Back?

A tenant can expect to get their security deposit back once the lease ends. Each state has its own security deposit laws about when and how the landlord must return the security deposit. Many states impose penalties or fines for landlords who fail to return a security deposit within the statute-defined time frame. The amount of time states give landlords ranges from 14 days to 60 days. The majority of states give landlords 30 days. Some states have two deadlines. There is a shorter deadline for the return of a security deposit when the landlord does not keep any portion of it. The deadline for returning a security deposit when the landlord keeps a portion is longer.

Some states also have special exceptions for specific circumstances. For instance, New Hampshire requires security deposits returned to tenants over 62 years old to be made within 20 days instead of the standard 30 days. New Jersey reduces the deadline from 30 days to five days if the property was damaged by fire, flood, or condemnation. Wyoming has a standard timeline of 30 days but allows landlords and tenants to agree to extend the return timeline up to 60 days. This change must be made in the lease.

What Reasons Can a Landlord Keep My Deposit?

Landlords must have a legally valid reason to keep a portion or all of a tenant’s security deposit. Each state has a defined list of valid reasons. Typically, they include reasons like excessive damage beyond wear and tear, unpaid rent or fees, excessive cleaning costs, and fixing the tenant’s unauthorized repairs or improvements.

Some states have unique reasons included in their statutes. California allows landlords to charge for a storage unit if the tenant leaves behind personal belongings. Illinois allows landlords in Chicago to charge for re-renting the unit if the renter breaks the lease early. Virginia allows landlords to charge for the removal of pet waste or biohazards. Washington permits landlords to recoup fees associated with unpaid parking fees if the tenant is required to pay for parking and they fail to do so. Florida allows landlords to recoup the cost of damages associated with the tenant’s failure to comply with pest control lease terms.

What Can a Landlord Deduct from the Security Deposit?

A landlord can keep a portion or all of a tenant’s security deposit for several reasons. Each state has laws defining what a landlord can and cannot deduct from the security deposit. State laws also define how the landlord must document expenses to validate the keeping of the security deposit.

Most commonly, states allow landlords to keep the security deposit to cover unpaid rent. It is common for tenants to move out without paying the last month’s rent. The landlord would need to have payment records to show an outstanding balance. Landlords are not allowed to deduct cleaning and maintenance costs for addressing ordinary wear and tear. Only damage beyond normal wear and tear can be deducted. The landlord should have images of the rental condition and invoices for the cost of repair. If there are excessive cleaning costs, the landlord can deduct the cost of cleaning.

The landlord can deduct the cost of replacing stolen items. The landlord would need to provide proof of the item being in the rental property before the lease and then pay to replace it afterward. Common examples include light or plumbing fixtures, furniture, or appliances. Similarly, the tenant should return any keys, access cards, and garage door opener buttons. The landlord can deduct the replacement cost if the tenant fails to return them.

If the landlord discovers that the tenant has outstanding utility bills, the landlord can deduct this from the security deposit. The landlord would need a copy of the outstanding balance from the utility company.

Finally, the landlord can deduct the cost of removing the tenant’s personal items. When the tenancy ends, the tenant should remove all personal belongings. The landlord can provide receipts or an itemized statement for the cost of removal.

How Do I Get My Security Deposit Back?

A tenant can get their security deposit back by communicating with the landlord. Send a written request to the landlord for the return of the security deposit. Review the lease agreement and confirm the lease terms. Coordinate with the landlord to be present for the move-in and move-out inspections. Make sure that all rent due is paid by the end of the lease. After the inspection, obtain a written statement from the landlord confirming they will return the security deposit. Provide the landlord with a forwarding address so the landlord knows where to send the returned security deposit.

Consider seeking out legal services to learn about the applicable local laws. Have the attorney send a written notice to the landlord. If necessary, file a lawsuit to pursue the return of the security deposit through legal means. Typically, this requires filing in small claims court. If the tenant is forced to take this action, they may be able to also ask for attorney fees and court costs.

Kevin Hirzel is a top-rated Real Estate attorney representing HOA organizations in Farmington, Michigan, with Hirzel Law, PLC law firm. He regularly works with HOAs to prepare governing documents and represent them in a variety of legal matters. He explains the importance of doing research when seeking out legal services and finding an attorney who has experience in your legal issue and works with your communication style. “Generally speaking, make sure you do your homework. Do some research online to look at the attorneys’ resumes and credentials. When you’re going through the intake process, that gives a fairly good indication of how your relationship is going to go with that attorney.”

Find Experienced Legal Help

When a tenant leaves their rental home after a lease, getting the security deposit back can provide much-needed financial relief. When the landlord does not return the security deposit, the tenant can be frustrated and confused, not understanding why the landlord kept it.

Speaking with a landlord-tenant attorney can help individuals understand tenant rights in their state. The lawyer can provide legal advice on who best pursues getting the security deposit back. Hirzel speaks to the passion that real estate lawyers have for their work and clients. “I can help create some value for them by helping them maintain their property values and increase them in some cases. I can also give them peace of mind about the community they live in with their neighbors.”

Visit the Super Lawyers directory to begin your search for an experienced real estate attorney.