Right: Landlord may retain a security deposit and deduct from it to cover charges that the tenant is liable for (e.g., unpaid rent or property damage beyond normal wear and tear.)
Requirement: The landlord must give any refundable amounts from the deposit to the tenant within 60 days of the end of the lease. They must record any deductions on an itemized receipt for the tenant (unless the tenant owes rent or there’s no dispute over the amount of rent owed).
Requirement: The landlord must keep accurate records of all security deposits. They must also delegate the responsibility of the deposit if they cease to be the property owner (e.g., through sale, assignment, etc.).
Requirement: Wrongfully withholding the security deposit will result in legal consequences (e.g., paying the tenant’s legal fees, forfeiting the right to keep any portion of the deposit, etc.).
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Right: The tenant’s claim to their security deposit takes priority over the claim of any creditor or bankrupt trustee that may target the landlord.
Requirement: To enforce the right to the return of their security deposit, the tenant must provide a forwarding address to the landlord. (Failing to do so doesn’t mean the tenant forfeits this right, but the landlord isn’t obligated to reach out first.)
Requirement: The tenant cannot withhold last month’s rent with the idea that their security deposit will cover it. If they do, they’re liable to pay three times the rent owed.
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