How to Get Your Security Deposit Back

Sadly there are times that the relationship between a landlord and tenant does not end on good terms, and you may need to take action against your landlord in order to get your security deposit back. What do you do if you moved out on good terms and have yet to receive your refund check?

Your course of action depends largely on the laws of the state in which the home is located. However, there are ways to protect yourself ahead of time in the event you are faced with this dilemma.

We recently examined the importance of a Move In/Move Out walkthrough checklist, and while this information was geared toward landlords, this advice is just as important for tenants.

Performing a few simple tasks before taking occupancy can protect you and your security deposit.

Here’s how to start:

1. Download our Move In/Move Out checklist to document the condition of the carpets, flooring, walls, cabinets, countertops, and major appliances. Support this documentation with a set of photographs that are taken prior to the receipt of your household goods. Ensure that the photos and document are dated and time stamped. Request that your landlord perform a walkthrough with you prior to taking occupancy. If this is not feasible, request that they too fill out the checklist so that you have a document substantiating the agreed upon condition of the home. Be sure to take another set of photos when you vacate the property to protect you should a dispute about your security deposit arise.

2. When providing your landlord with a security deposit, do so by check or money order so that you may retain a copy of the document for your records.

3. Take a moment to research the landlord/tenant laws of the state in which you are renting to clarify what laws regulate the receiving, holding, and return of security deposits. Some states mandate that landlords hold security deposits in a separate account exclusively set up for the holding of security monies, and some may require that they pay interest or supply you with a monthly accounting. Find answers to the following questions: How much notice must I provide to the landlord upon my intent to vacate the premises? Can the deposit be used for the last month’s rent? Do I need to send the landlord a Demand Letter requesting the return of my security deposit? How many days does the landlord have to return my security deposit or explanation of retention? Each state varies, so please be sure you are reviewing the correct laws for your state.

4. Understand how a security deposit should be used. A Security deposit is defined as, “Money aside from the payment of rent that a landlord requires a tenant to pay to be kept separately in a fund for use should the tenant cause damage to the premises or otherwise violate terms of the lease.” The key component in this definition is the use of the word “damage,” as this is not the same as “normal wear and tear,” which includes items such as soiled carpet, faded paint, holes in walls, etc. These items are part of the expected wear and tear that comes with living in a home. This distinction is important when it comes to understanding the circumstances for which your landlord can withhold monies. It is imperative that you review your Lease Agreement for clarity on what is expected upon your vacating the premises, and if the document does not clearly state whether you must have the home or carpets professionally cleaned, ask your landlord directly.

These are questions that are better asked and answered before you are in the heat of a dispute, so talk with your landlord, use the wealth of information provided through internet sites, or ask your installations legal department to provide you with this information to keep on hand.

5. Whether or not your state requires you to send the landlord a Demand Letter, it may be in your best interest to do so. Include in the letter that you are requesting the return of your security deposit, the exact amount of the deposit, as well as the date you vacated the property, the condition it was left in, and your forwarding address. Retain a copy of the letter for your records and send the document Certified Mail, Return Receipt Requested so that you have confirmation that the letter was received. In the event that the landlord does not respond, it is best to seek the legal advice, preferably from the professionals at your base Legal Office.

6. If the landlord retains a portion of your security deposit, it should be accompanied by a written explanation. If it is not, you may request that this information be provided to you. This is where the Move In/Move Out checklist along with your photographs may assist you in the event of any dispute. Remember that normal wear and tear items cannot be deducted from your security deposit, but rather only for items deemed as damage.

7. If you are going to dispute any of the items that led to the partial retention of your security deposit, it is best to resolve these issues before depositing the refund check. However, if you wish to deposit the partial refund, clearly state in another letter that your cashing the check does not mean that you agree with the items that were deducted. Once again, send and any all correspondence Certified Mail, Return Receipt Requested, and retain a copy for your records.

8. Due to the fact that disputes about money can become contentious, it is best to seek legal advice early on to make sure that you understand the laws that may affect the outcome of the situation. Use your installation Legal Office for assistance in deciphering laws and for sound advice on how to proceed.

While situations like this may be unavoidable, taking steps to protect yourself from the beginning, such as utilizing our Move In/Move Out checklist as well as taking a complete set of photographs, can provide support for any future claims.

It is always better to be proactive rather than reactive, so use the strategies we have provided here to avoid a difficult situation between you and your landlord altogether.