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Neighborhood
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Neighborhood
Legal Services, Inc.
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WHAT IS A SECURITY DEPOSIT
© 1991-2003 by Neighborhood Legal Services, Inc.
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A security deposit is a landlord's way of guaranteeing that he or she will be compensated for any damages that may occur while a tenant is living on the property. The amount of this deposit is usually no more than one month's rent, but can be more.
Where does my deposit money go once I give it to my landlord?
If the building in which you are moving into has more than six units in it, the landlord must put your money into an interest bearing savings account. The interest which this money may accumulate will belong to you, the tenant. If your building is less than six units, your landlord may still deposit your money into an interest bearing account. If your landlord does so, he or she should pay you the interest. The landlord in either situation is allowed to keep 1% of the interest for expenses.
It is a good idea to ask your landlord about this before moving in.
Can I use my security deposit to pay my last month's rent in an apartment which I am moving from?
You cannot do this unless the landlord agrees to it. Your security deposit is just that, a deposit of secured funds to pay for damages that you may cause while moving in/living in or moving out of the landlord's property.
How long can my landlord hold my security deposit after I move out?
Even though it would be nice for your landlord to give you your security deposit back the day in which you move out, he does not have to. Your landlord may hold your security deposit for a reasonable time after you move out of the house. Reasonable time is hard to define. If your landlord does not return your deposit after 15-30 days, find out why. If the landlord promises to get you the money by a certain date, write a letter.
What happens if I do cause some type of damage to the landlord's property?
The landlord may deduct a portion of the security deposit to cover the cost of the damages and what is left over of the security deposit from that will be given back to you. If the damages are bad enough, the landlord may keep the entire security deposit.
What if the damages done to the property are more than what my security deposit covers?
If this happens, the landlord may take you to Small Claims Court to recover any and all damages that the security deposit did not cover.
Can my landlord keep my security deposit even if I did not cause any damage to the property and I do not owe any rent?
The answer is no. Your landlord cannot keep your security deposit if you have not caused any damage to the property and you don't owe rent when you leave. If this does happen, you should immediately file a claim in Small Claims Court against your landlord to recover your money. If you would like further information you can contact Neighborhood Legal Services, Inc. at 847-0650.
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