Returning the security deposit is one of the most common disputes between tenants and landlords. Even if you do everything you’re supposed to — move-in and move-out walkthroughs, recording any pre-existing damage, taking a lot of photos both before anyone has moved in and after a tenant has moved out, and fixing any reported damage quickly — you can still end up with complaints.
Preparing the Deposit Return
When you start to write up the deposit-return form, include the following:
- The original deposit
- The deposit amount at time of move-out (this is especially important if you’ve deducted anything while the tenant was living in the unit)
- A list of itemized deductions broken down by date and job (such as painting, carpet cleaning, sink repair, and so on; be sure you have written records of each of these)
- The name of the contractor who did the work; include copies of invoices and receipts if possible, but at least include the invoice numbers
- A list of outstanding charges; double-check which fees can legally be listed
Delivering the Deposit Return
You must return the deposit amount and the itemized list within a certain amount of time. In California, this is within 21 calendar days after the date the tenant has moved out. The tenant can pick up the deposit, or you can mail it to the tenant, but this decision should be in writing. Send the return by certified mail and hang onto that tracking number.
You must have the tenant’s forwarding address. If the tenant moves without giving you an address, send the return paperwork to the last address you had for the tenant via certified/return-receipt mail. You may want to hold the actual funds in this case and note in the letter that these are being held so the tenant can pick them up.
Dealing With Disputes
These are best done in writing, even if you had a good relationship with the tenant. Email isn’t a good idea here as it can be too impulsive.
Check any letters you receive carefully for actual deduction-related issues in between the statutes that the letter will likely list. Stay professional in your response.
Your Response
You may see phrases like “immediate action” in the letters you receive. Let the tenant know you need at least 14 business days to evaluate the situation, state why you are disagreeing, and ask the tenant to send proof of claims made in the letter. Send copies of your receipts with the response if you haven’t already sent them. Don’t send pictures; save those for court.
You can offer a “nuisance settlement” of up to a few hundred dollars if you don’t think the case is absolutely on your side. If you have done everything perfectly according to law and know your case is winnable, though, then you may want to wait for any court action.
More Information
If you’re a private landlord, you may want to consider letting a property management company like SOS manage your rental units. This would relieve you of the burden of dealing with deposit-return disputes. Contact SOS today for more information.
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San Diego’s Premier Property Management Company
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