Security/ Damage Deposit

[Ann B.]

I have two questions for your opinions and comments. The scenario: Tenant pays $500 deposit upon move-in. Throughout the years of tenancy, the rent has increased to $600 per month, but the deposit wasn’t ever increased. Tenant moves out (legally) without paying the last month’s rent and leaves about $300 in cleaning fees and damages.

1. Does the security/ damage deposit apply FIRST to the unpaid rent or the cleaning fees and damages?

2. If the deposit first applies to the unpaid rent, is it really fair for the management company to deduct their fees when they DIDN’T actually collect the rent?

[Patricia Steiner]

in your state, a security deposit can be offset for the following reasons:  "To cover unpaid rent. Damage in excess of normal wear and tear. Costs to clean the unit."  You have to document the deduction and provide an accounting to the departed tenant within 30 days.  There's also a difference between damage and "normal wear and tear" - and what is defined by "cleaning."  If it were me, I would take the rent first and then apply the balance to the other. That makes any debate on cleaning fees and damages a lot smaller should the tenant challenge the offset.