Common Issues in Rental Property Management - Security Deposits

Security deposits are a must in rental propertycould result in deductions from the deposit. The
management. But there are rules on how muchtenant must then request the inspection. If the
of a deposit may be requested, what it can betenant does so, the landlord must inspect and give
used for, and how any unused portion must bethe tenant an itemized statement of problems
returned to the tenant. Where I practice inwith the property's condition so that the tenant
California the landlord may obtain from the tenant,has the opportunity to correct them prior to
at the inception of the tenancy, a security depositmove-out. The parties then typically schedule a
of up to two months' rent for an unfurnishedfinal walk-through where the landlord can check to
premises and up to three months' rent for asee if the tenant has corrected the problems.
furnished premises. The security deposit may beThe landlord has 21 calendar days after the
in addition to the first month's rent charged intenant vacates to give the tenant, by personal
advance.delivery or by first-class mail, an itemized
The landlord must hold the security deposit forstatement showing all deductions from the
the benefit of the tenant. The landlord may onlysecurity deposit and return to the tenant any
deduct from the security deposit for unpaid rent,unused portion of the deposit. For all deductions,
damage to the premises except for ordinarythe landlord must also provide supporting
wear and tear, and cleaning the premises so as todocumentation such as invoices, bills, receipts, etc.
return it to the same condition that it was in atIf the landlord fails to account for the security
the start of the tenancy.deposit to the tenant, the tenant may sue for
Where one party terminates the tenancy (otherreturn of the deposit. If the tenant can show that
than for breach of the lease or failure to paythe landlord's retention of the deposit was in bad
rent), the landlord must give the tenant, within afaith, the court may award the tenant a
reasonable time after notice of termination,statutory penalty of up to two times the amount
written notice of the tenant's right to anof the deposit.
inspection and advance notice of deficiencies that