Getting
Your Security Deposit Back
Chances are
that you have handed over a lot of money in order to move into your
apartment. This is your money. Your landlord must pay you interest every
year (in San Francisco) and return your deposit to you when you move
out. The landlord must agree to do a pre-move-out inspection and can
only withhold your deposit for certain specific reasons.
If your landlord
does not return your security deposit, you will need to sue in small
claims court. This is an easy process see Small
Claims Court Self Help.
Moving
In
When you move in, your landlord will ask for some type of deposit. Whatever
it's called, the law treats this initial payment as security deposit
subject to California Civil Code Section 1950.5.
According
to this state law:
There is no such thing as a nonrefundable security
deposit. No matter what its calleda key deposit, cleaning
fee, move-in fee, closing costs, last months rent, etc.all
money you pay in addition to your first months rent is refundable.
Since
nonrefundable deposits are illegal, dont worry if
your rental agreement includes a section about a nonrefundable
deposit. This section will not be valid even if you have signed the
rental contract or agreed to it.
No matter what its called, the total amount the landlord
can charge for all the deposits (including last months rent) is
twice the amount of one months rent for an unfurnished place or
three times one months rent for a furnished place.
Protecting
Your Deposit When Moving In
Take some of these basic precautions when you move in. Many tenants
end up going to Small Claims Court to get their deposits back and these
precautions can give you needed evidence.
Get an itemized receipt for your deposit. This receipt will identify
each charge ( for example, pet deposit, last months rent, cleaning
fees, etc.).
When moving in, take careful inventory of the condition of the
place. Record any existing damage and check all appliances to make sure
they work properly. Ask the landlord to sign and date the inventory
and be sure to keep a copy (if s/he wont sign, send a copy to
them and mail one to yourselfwhich you save unopened). Pictures
or videos of the existing condition of the apartment can also be helpful
later.
Moving
Out
The law stipulates that a landlord do a pre-move-out inspection with
you, let you fix identified deficiencies and limits what can be withheld.
It also says how long the landlord has to return your money and what
he must do to justify any withholding.
According
to California Civil Code Section 1950.5:
The landlord must notify you in writing that you have the right to an inspection and must conduct an inspection of the apartment
with you. The inspection should be done in the last 2 weeks of tenancy. The landlord
must let you fix anything which is wrong and the landlord is limited
to taking deductions for unfixed deficiencies, damage which occurred
after the inspection, or damage not found at the time of the inspection.
Your deposit must be returned to you within 21 days after you
move out. Your landlord must give you a written, itemized statement
of the reason for any amount withheld from your deposit. Money can be
withheld only for:
Unpaid Rent (talk to a counselor if you are breaking a lease or
giving less than 30 days notice).
Damage caused by you beyond normal wear and tear.
Reasonable cleaning charges.
If your security deposit is not returned or accounted for within
21 days, you can sue the landlord in Small Claims (limit is $7,500;
if higher, then lawsuit would be in Superior Court Limited Jurisdiction)
court for the amount of the deposit, plus twice the amount of the deposit
if you can show bad faith, plus any actual damages.
Landlords
must provide receipts documenting the costs of claimed repairs or estimates,
unless the landlord does the work themselves (in which case they must
describe the work done. In either case, if materials are purchased,
copies of the purchase receipts must be provided (or estimates).
Protecting
Your Deposit When Moving Out
As when moving in, you can take some basic precautions when you move
out.
Be sure to give at least 30 days written notice before you move
out. Technically, you are responsible to pay rent for these 30 days
and your landlord can deduct unpaid rent from your deposit.
If you need to move quickly because of conditions in your apartment
or if you are breaking a lease, talk to one of the Tenants Union counselors.
On the day you move out, have the landlord or manager do a final
inspection of the apartment with you. Try to arrange an exchange of
your keys for your security deposit. Or have the landlord/manager sign
and date a statement that the place is clean and in good condition.
If the landlord wont exchange keys or sign a statement, take pictures/videos
of the condition of the apartment (hold up a copy of the days
newspaper to show the pictures werent taken earlier).
Stubborn
Landlords
If your landlord does not return your money on time or if he unjustly
withholds some of it, be prepared to assert your rights. Remember, many
landlords withhold all security deposits knowing that many tenants will
not take the steps to get back their money.
Go To Small Claims Court...
Send a letter to your landlord requesting the money. Refer to
the Security Deposit Laws (CCC Sec. 1950.5 and SF Admin. Code Ch. 49).
Give the landlord a deadline date of when you expect the money.
If the landlord doesnt respond within a reasonable time,
you can take him/her to Small Claims Court. For a small filing fee,
you can sue for up to $7,500. In addition to the disputed money, you
can sue for statutory damages for your landlords illegally withholding
your deposit. Small
Claims Court is informal and no lawyers are allowed. A few weeks after
you file a claim, a hearing will be held. You will tell your side of
the story and the landlord will tell his/her side. Your written documentation
(receipts, inspection report, photos, etc.) will help your case. You
must sue in the city where the rental wasif you rented in San
Francisco then you must sue in San Francisco.
Self-Help
Tactics...
Depending on where you're moving to or what your landlord is like, you
may want to think about applying your security deposit to your last
month's rent.
If all or part of your security deposit is called "last month's
rent" on your lease or rental agreement, then applying this amount
to your last month's rent is simply what your rental agreement stipulates.
If part of your deposit was not specifically for last months
rent, you are supposed to pay rent the last 30 days you are there (even
when the security deposit is larger than or equal to one months
rent).
However, if you think it will be difficult to get your landlord to return
the security deposit, you may choose to use your deposit towards your
last months rent. Write a note and keep a copy explaining that
you need your money for moving expenses, and that you intend to leave
the place clean (you may even offer to have the landlord inspect right
then to look for damage).
If your landlord doesnt like this solution, the worst that
can happen is that youll receive a 3-day notice to pay the rent
or move out. If you dont do either, you cannot be locked out,
have your things removed, or be harassed in order to make you leave.
Your landlord must take you to court to regain possession of your apartment.
Since you are moving anyway, and your landlord already has your money
for that month, chances are your landlord would find that to be a big
waste of time and money to take you to court.
Other
Rights
You Are Owed Annual Interest...
If you are a tenant in San Francisco, the landlord must pay you
interest per year on your deposit after September 1, 1983. The interest
amount was initially a flat rate and has since been indexed. The rates
are:
9/1/1983
to 8/3/20025%
8/4/2002
to 2/28/20033.4%
3/1/2003
to 2/28/20041.2%
3/1/2004
to 2/28/20051.2%
3/1/2005
to 2/28/20061.7%
3/1/2006 to 2/28/2007—3.7%
3/1/2007 to 2/28/2008 —5.2%
This rate
is published annually by the Rent Board. The landlord must pay this
at least once a year and may deduct a $21.50 Rent Board Fee
from it (Chapter 49 of the SF Administrative Code).
If you don't get your interest paid to you annually, you may either
withhold it from your rent or sue the landlord in Small Claim Court.
Increases
in Security Deposits...
There is nothing in the law which allows your landlord to raise
your security deposit amount over time.
If your landlord tries to do this, file an "unlawful rent
increase petition" with the SF Rent Board (25 Van Ness Ave.).
If you do not pay this increase, you can not be evicted for nonpayment
of rent, since the security deposit is not considered rent.
The
SF Tenants Union is supported only by your memberships and donations.
If you find information on this web site useful, or if you want to support
our work, please join or donate. Members get even more information via
our Tenants Rights Handbook plus access to phone counseling
Join
or Donate By Credit or Debit Card