Thinking about having your security deposit returned to you should a consideration even before you sign your lease or rental agreement. Why should you think about moving out even before you move in? The answer is simple. Your security deposit is your money and you want it returned when you move out. So, what should you know about having your security deposit returned to you? Here are some secrets that some landlords don't want you to know.
Landlords are allowed to require a security deposit in order to protect their financial interest in their property. The amount they are legally allowed to charge varies by state, so you should check with the local housing authorities or rental associations if you have any question about the amount. At the end of the term of the rental agreement landlords are required to return it to you, less any deductions for repairs and damages beyond normal wear and tear.
The landlord will deposit your money in an escrow account which may earn interest. This money remains your money for the duration of your lease. When you vacate the rental unit, the security deposit money is returned to you, providing that you have upheld your end of the lease agreement. In other words, you have paid your rent in full and you haven't trashed the place. Any interest earned on the money may or may not be returned to you, depending upon state law.
So how are you going to be sure that you will have your security deposit money returned in full? The first bit of advice is to ask questions before signing the lease or rental agreement. Ask the landlord exactly what his expectations are for you to be able to get your money back. He'll be glad to explain the process and will appreciate your interest in establishing a good relationship. Then be sure to do the following:
First, be present at the time of the move-in inspection. Be sure to have a camera and take lots pictures of the condition of the unit and all the appliances. Note anything that is broken, shows a lot of wear and tear, or is dirty. You should sign a copy of the move-in inspection report after it is completed. Be sure to ask about how soon any maintenance work arising from the inspection will be completed. Ask for a work order number and note it on the report when you receive it.
Tip: If your landlord doesn't have the repairs made within a reasonable amount of time, say thirty days, send him a polite note requesting confirmation of the work order and the expected completion date. This will alert that landlord to the fact that you are serious about keeping your rental in good condition and expect him to hold up his end of the lease. Be sure to keep a file of all such correspondence.
Next, file your copy of the inspection report in a safe place and be sure to add your pictures to the file as soon as they are available. You should take the time to keep files of all your documents, including the lease agreement, the move-in inspection report, all photographs you have taken, and later on copies of all correspondence, including work orders or maintenance requests that you have initiated.
If you remain in your rental for more than a year, the landlord may require a semi-annual or an annual inspection of the premises. Additionally, there may be occasional fire, safety, or health inspections as well and inspections by government managers for subsidized housing. The inspection forms used for these occasions are different from the move-in inspection form, so be sure to request a copy for your files. Once again, you should look for work order numbers along with the results of the inspection.
If you are "gigged" for anything during the inspection, you should try to correct in immediately and in the presence of the inspector. If you can't make the corrections yourself or during the inspectors visit, you are likely to receive a letter from the landlord that notes the discrepancy and explains your responsibility for making repairs and if and when a follow-up inspection will occur. Keep all this paperwork on file, as well.
When you decide to move-out of the unit, you should take time to review your lease and look for the clauses regarding notification and payment of rent. In some instances, you will have paid the last month's rent in advance, so you should take that into consideration when determining your actual move-out date. You should note that the landlord will expect the rental to be returned to him in the same condition it was when you moved in, less any normal wear and tear. If there are unusual damages, or if you owe any back rent or any have any other unpaid charges, the landlord will deduct the amount from your security deposit. The best advice here is to discuss your standing with the landlord as soon as you notify him of your intent to move out, in writing of course.
When move-out time comes, you should try your best to be present. The move out inspection will usually occur within a day or so of your actual move out date. Be sure to give yourself enough time to thoroughly clean the unit and restore it as best you can to its original condition. As you did during the move-in inspection, have your camera ready to photograph any discrepancy the landlord or inspector may point out.
It's always a good idea to have a small collection of cleaning tools and washes ready to wipe up any spills or stains the landlord or inspector uncovers. The inspectors are usually quite forgiving, although they will not overlook any damages that require a work order. For the landlord, any repairs they have to make to the unit translates into lost revenue due to maintenance, materials and repairs.
Once the move-out inspection is complete, you should be given a copy to sign. The report will note any serious discrepancies and you can expect to be charged for the cost of correcting them. If the total cost of the charges, which include labor, time and materials, are in excess of your security deposit amount, the landlord may opt to file a claim in small claims court to recover the damages from you.
Once you have completed your move-out, the landlord may take a reasonable amount of time to return your security deposit to you. If no discrepancies found during the move-out inspection, you can expect to receive your returned deposit in full. If there were charges made, your security deposit should include a letter with an explanation of the charges.
If you feel that your have been charged unfairly by the landlord, you could challenge the charges by writing to the landlord and provide the details justifying your disagreement. Depending upon the nature of the charges, you may want to go as far as to get three independent estimates of the cost repairing the discrepancies. Again, you should keep the estimates on file in case you have to go to court to settle your dispute.
If a serious disagreement ensues, you may file a claim in small claims court and state your case before an impartial judge. Providing that you have kept a record of all your correspondence, including inspection reports, pictures, and the lease, you stand a good chance of winning and possibly being awarded punitive damages as well. In some situations, you may consider consulting with an attorney specializing in rental disputes, if the situation warrants.
Moving in to your new apartment is a great feeling, one of pride and success that you certainly should enjoy. Moving out should be just as rewarding, and having your security deposit returned to you in full will be a cinch providing you have upheld your end of the lease, and kept good records during your tenancy. Finally, if you should happen to have a problem getting your security deposit returned, you will have a good chance of prevailing when you present all your records in court.