How Tenants Can Protect Security Deposits

Start to protect security deposits at move-in. Before a tenant moves in to the unit, it is important to document and prepare a complete inventory the unit’s condition. Landlords typically provide a move-in checklist. Thoroughly check everything, even if it is in good condition. Every detail you include in completing the checklist is one less problem that can be used to justify a deposit reduction when you move out.

Include in your checklist, cracks, stains, holes, aside from the more serious problems you can find. Prepare your own checklist if the landlord fails to provide you one. For an incomplete landlord checklist, add areas and problems to the checklist.

Whenever a landlord refuses to sign a dated checklist, you can mail a dated checklist to the landlord and keep the proof of mailing.

Take photographs of the unit, using a camera with a date stamp and particular focus on any damaged areas. Keep the photos in your file.

To protect your deposit when you move out

Begin by providing a proper written notice specifying when you are going to vacate the unit. When leaving before the expiration of the lease, you may want to consult an attorney or a tenant counselor for more advice. In the month-to-month rental cases, send your landlord a letter but provide at least thirty days notice specifying the departure date. Make sure to obtain a proof of mailing the notice. Without this sufficient notice, the landlord can deduct a month’s rent from your deposit.

Then you can ask for a pre-move out inspection by the landlord. Civil Code 1950.5(f) entitles the tenant to demand for a walkthrough inspection of the unit two weeks before departure by the landlord. When a landlord disagrees with the date that you have selected, the landlord must provide within forty-eight hours a notice of the inspection for his new date.

After the inspection, landlords must provide a detailed list of damages or cleaning needs that would charge against your security deposit. This process allows the tenant to fix the damages and cleaning needs rather than have withheld portions of the security deposit. Document your repair or cleaning efforts with photographs and video.

When Property Ownership Changes

As per Civil Code Section 1950.5(l), when a landlord transfers ownership of the building to a new owner, the landlord is required to either transfer the remainder of the security deposit to the new owner or return the remainder of the deposit to the tenant. The new owner will assume the same rights and obligations with respect to the security deposit, as per Civil Code sec. 1950.5 (k). If the deposit is not returned to the tenant, both the landowner and subsequent owners are liable to the tenant.

When a landlord doesn’t return security deposits

When security deposits are not returned by the landlord, consider writing a certified demand letter to the landlord and filing a lawsuit. The landlord, acting in bad faith may be liable for two times the amount of the deposit. This is as penalty as per Civil Code sec. 1950.5 (k) (1). You can file the lawsuit in the small claims court handling claims for up to $10,000.

Do tenants need a lawyer to file these claims?

Generally, cases of security deposits that are handled in small claims court are all represented by the parties themselves. It may be worth hiring an attorney in situations where the deposit is particularly large and the landlord is blatantly acting in bad faith. If you have other disputes with your landlord, you can also consult an attorney about whether it would make sense to combine your security deposit claim with other claims and get represented by a lawyer in a single suit.
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