23 Nov Basics of Security Deposit Between Tenants and Landlords In California
Tenants and Landlords In California
The security deposit is a payment imposed by a landlord prior to residency from a tenant to cover the expenses of any repairs or damages to a rented/leased unit, greater than normal ‘wear and tear’.
Additionally, it can be used as compensation for a tenant’s default in paying of rent, cleaning of premises upon termination of tenancy or remedy future defaults in payment by the tenant.
If the residence has minimal wear and tear and no damage, the landlord is bound by law to return the full amount of the security deposit. California offers a 21-day period allowing the renter to get the deposit back if the residency is left clean, undamaged and all of the rent is paid up-to-date. If the landlord misses the 21-day deadline, he forfeits the right to deduct anything. If then in fact the deposit is kept, the tenant can sue for up to three times the amount of the deposit, with the maximum in small claims court being $10,000, and each tenant can sue separately for that amount.
In the interest of both the landlord and the tenant, it is often advisable for both parties to take pictures of the rented unit prior to residency, so that in the event of any discrepancies at the time of departure, there will be proof of the initial state. Also, by making it clear to both parties—which will avoid conflict at time of departure—it is advantageous for landlords to get tenants to fill out move in/out forms highlighting the inventory and condition of each room prior to moving in.
With the various technologies available nowadays, all of the photos, inventory checks and signing of agreements can be hands on and done while both parties are at the residency, again avoiding any future conflict. Landlords and property managers will be interested to know that Android apps such as Rent Protector and iPhone apps such as Happy Inspector provide ease of use and professional looking reports in fewer steps than traditional reporting methods.
Regarding the specific value of the security deposit, it will fluctuate depending on the monthly rent of the unit. However, the landlord is not permitted by law to ask for a deposit in excess of an amount equal or higher amount than two months’ rent for unfurnished residences, and three months’ rent for furnished properties, in addition to any rent.
What may change the course of the security deposit is if in fact pets are allowed on the property. The landlord may implement an additional charge to the security deposit, or draft up a whole separate agreement with different terms and conditions (for example, depending on what type of pet the tenant will be bringing into the residency). All of this will cover both parties by allowing them to acknowledge all of the provisions laid out in the agreement, so they cannot go back at the end of the lease and say they were unaware of their individual rights.
When it comes to the end of a lease or rental agreement, there are specific guidelines a landlord must follow. At a reasonable time, but no earlier than two weeks before the termination or the end of lease date, the landlord, or an agent of the landlord, shall, upon the request of the tenant, make an initial inspection of the premises prior to any final inspection the landlord makes after the tenant has vacated the premises. The purpose of the initial inspection shall be to allow the tenant an opportunity to remedy identified deficiencies, in a manner consistent with the rights and obligations of the parties under the rental agreement, in order to avoid deductions from the security.
The best way to ensure that you implement proper actions regarding the security deposit and terminating the lease with your tenant is to educate yourself on the California landlord/tenant laws.