Deposits

The Law. One of the most common sources of dispute between landlords and tenants is the return of deposits. The legal rules for deposits are contained in Section 1950.5 of the California Civil Code. Under this law:

 A deposit is defined as "any payment, fee, deposit or charge", including, but not limited to, last month's rent (but not first month's rent), paid by a tenant at the time that s/he moves in. Whatever your landlord calls it, the law calls it a security deposit.

 Under no circumstances is it legal for a deposit to be non-refundable. Some apartment managers attempt to hold non-refundable deposits for cleaning carpets and draperies after the tenant moves out.

 For an unfurnished property, your landlord cannot require you to pay an amount greater than two months' rent for a deposit; if you rent a furnished property, the deposit cannot be greater than three months' rent.

 The landlord may only keep that part of your deposit that is reasonably necessary to:
1. cover unpaid rent;
2. repair damage caused by you or your guests, except for ordinary wear and tear;
3. clean the premises after you've moved, if you did not clean it well.

 Within three weeks after you move the landlord must return your deposit and, if any money is kept, give you an itemized written statement of the amounts and purposes for which the deposit was used.

 If a landlord acts in "bad faith" in not returning the money, s/he may be liable for up to $600 in punitive damages over and above the amount of the deposit unfairly kept.

 A tenant may request that a landlord "hold" an apartment or house until some future time. The money given to the landlord to fulfill this agreement is called a holding deposit. The deposit in such a case is a contract distinct from any rental agreement. If the tenant decides not to move in, the landlord may keep the deposit. Unless there is a specific limit on what part of the funds constitute a holding deposit, the tenants have effectively given up their rights to the return of the monies. Payments should therefore be clearly defined on the receipt so that the use is clear to both parties.

 Civil Code 1853 provides that any part of a rental agreement in which you agree to waive or modify any right under Section 1950.5 is void. For example, it would be invalid for a landlord to make the return of a security deposit contingent upon the tenant remaining in a rental for a specified period of time.
 

Protecting Your Deposit. Get a receipt for the deposit stating how the money will be used or applied. Do not pay a holding deposit until you are sure you want to rent the unit.
 

Moving In. Inspect the rental unit very carefully. If there is anything at all wrong with it (any dirt or damage) get a few responsible friends to witness the unit's condition. Then have them write a simple note describing what they saw. Have them sign and date it. If possible, take photographs of all defects, develop them, and after developed, identify each photo on the back by location and date. Then have your friend sign them. Send them to yourself by mail, and put the envelope (un-opened) with your rental agreement and rent receipts.

Also, use a checklist to detail the condition of the rental. If possible, go through the place with your landlord and fill out a checklist together. A checklist can be obtained by contacting The Off-Campus Rental Housing Office. When using a checklist be specific and check carefully. Among the things you should look for are dust, dirt, grease, stains, burns, damages and wear. Don't be afraid or timid about listings things; your landlord may not be timid about charging you when you move for things not listed now.
 

Thinking of Moving? Be sure you give your landlord written notice of your plans to move. Oral notice is not enough. If you have a month-to-month tenancy, the amount of notice you must give is equal to the time between your rent payments unless your written agreement provides for something different. It is not necessary for your notice to correspond to a due date for rent. Make sure you KEEP A COPY of your notice.

If you do not give proper notice, usually 30 days in writing, you may lose part of or all of your deposit.

If you have a lease, you may attempt to break your lease but there is a risk involved. Your landlord is obligated to make an attempt to find a replacement tenant, but in the event that no suitable tenant can be found, you must pay the rent on your unit until either the end of your lease period or the date that a new tenant moves in - whichever comes first.
 

Before You Move Out. Take a look around. The place should be as clean as when you moved in and there should be no damage beyond normal wear and tear. If this is not the case, you should do something about it.

While you are cleaning, keep all receipts for the purchase of cleaning materials that you use in your final clean-up. If you rent a waxer of a rug shampooer, keep the receipts and have a photograph taken of you using it.

After everything is moved out and you are finished cleaning, have a responsible person thoroughly check each room so that, if necessary, there is someone to testify on your behalf that it was clean and in good shape when you moved out. If possible, get one of your friends who saw the rental when you moved in. Take photographs.

If you and the landlord filled out a checklist when you moved in (or even if you didn't and are on good terms) it is wise to invite him/her over when you finish cleaning to go over the place with you. This is the time to discuss details about the return of your deposit. If there is any damage, you can discuss a fair price for its repair, and you might already have estimates to show him/her.
 

After You Move Out. Return the key right away. If you still have the key you have not given up possession of the unit.

If you and the landlord did not go through the rental, within a few days call the landlord to see if everything is okay. Offer to go back and take care of anything you have overlooked.

In all cases, if you don't receive your refund within three weeks you should contact the landlord in writing to find our why you haven't received anything. Keep a copy of any correspondence.
 

Change of Owners. If your landlord sells the rental while you're living there, s/he must, within a reasonable amount of time and after deducting any proper amounts from your deposit, do one of two things: (1) transfer the rest of your deposit to the new landlord and notify you of the transfer and the new landlord's name and address; or (2) return the remainder of your deposit to you.