Security Deposits Are a Common Source of Landlord/Tenant Conflicts

If you have ever rented a home or are in the market to do so, you are probably aware of how challenging it can be to come up with the classic combination of first and last month’s rent, and what can sometimes be a substantial security deposit too. Along with that, you may also have to jump through other hoops like signing off on background and credit checks, and providing a list of solid references.

And while home ownership is great, the benefits abound in renting too; for instance, you may not have the cash for a down payment to buy a home right now, or you may not want to stay in your area (or one home) long-term. Like many others, you may prefer to leave maintenance and upkeep to someone else, along with replacing costly items like appliances and HVAC equipment. It may not be easy to come up with thousands of dollars for a rental, but it could be your best choice at the time.

Along with the rental comes the lease. Whether you are signing a month-to-month lease or one that may span from six months to a year, this document offers legal protection for the tenant and the landlord, and should outline the amount of money received up front, and what is to be paid in rent each month. Keep in mind also that California regulates the amount a landlord can ask for in terms of security deposits, limiting it to the equivalent of two months’ rent for an unfurnished residence, and three months’ if furnished. Non-refundable deposits are prohibited.

So why do security deposits so often end up being the bone of contention, ruining what were harmonious relationships previously between landlord and tenant? While a private landlord may have some reluctance to part with your cash once you have handed it over, normally conflict arises over what is construed as damage and how much of the security deposit should be held back to pay for it. There may also be other reasons for you to lose some—or even all—of the security deposit. If you decide to break the lease and move early, there is usually a significant penalty, including charges for any back rent that could be owed. Other reasons to lose deposit money include added cleaning costs, furnished items that were lost or damaged, furnishings or possessions of yours that were left behind and had to be disposed of, overdue utilities, and other issues.

By law, the landlord can only hold your security deposit funds for 21 days after you have moved out, and you should be apprised of any funds being withheld due to damage or other reasons.

Do you need help with a landlord/tenant or real estate? Call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We can review your case, answer your questions, and help you decide how to move forward. We are here to help!

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Security Deposits Are a Common Source of Landlord/Tenant Conflicts

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