Mike Explains: Return of Tenant Security Deposit

In this video, Mike offers insight into what rules & regulations the landlord must abide by to return a tenant's security deposit.

Click here to read it at the blog: http://bit.ly/MikeExplains-SecurityDeposits

Check out our website at https://www.longbeachpropertymgmt.com​.

Dunfee Real Estate Services, Inc.
DRE # 02026232

#LongBeachCalifornia​ #SecurityDeposit #RealEstate​ #RealEstateSale​ #CaliforniaRealEstate​ #MikeDunfeeGroup​ #LongBeach​ #Landlord #Tenant #LandlordEducation #TenantEducation

TRANSCRIPTION:
Imagine, if you will. You spent the last month getting this property ready for the new tenants. The last tenants, they trashed the place. So, property's ready and you get served to go to small claim's court. The last tenants will take you in front of the judge to try to get their security deposit back. Well, you know how they left the place so you're happy to go talk to the judge. To your surprise, you lose.

Often, the most contentious part of the landlord-tenant relationship is the return of the security deposit. Security deposit is money that the tenant gives the landlord to hold in case there's damage done to the property or the tenant does not live up to the terms of the lease. In this case, the tenants clearly did more damage to the property than the security deposit covered. Unfortunately, the landlord didn't follow the rules.

Now, here's some of the rules you need to know as a landlord:

One of the most important rules is the landlord has 21 days to settle up. When a tenant moves out, if you don't pay them in full, you must get a letter of explanation of why you didn't, along with a detailed accounting including receipts for any item over 125 dollars. Of course, all this must be done, receipts for everything and all this must be done within 21 days. And believe me, 21 days goes fast.

In California, the landlord can deduct from a tenant security deposit for the following reasons:

One, the cost of fixing any damage to the property that the tenant may have done provided that it is not ordinary wear and tear.

Two, the cost of cleaning the unit provided that is putting the unit back in the same condition that it was when the tenant originally rented it.

Three, any unpaid rent the tenant may owe, including rent owed because the tenant did not give proper notice.

The landlord can withhold from the security deposit for repairs that are only necessary and reasonable, and this does not include ordinary wear and tear. To be fair, ordinary wear and tear may seem kind of arbitrary; the use of reasonable judgment and experience, I mean, that's what you have to use in this case.

So, like, for example, they hung a bunch of pictures in the house and they're gone three months later and you have to repair all the holes for the pictures being up that's not, that's reasonable to charge for that. If they've been there for over a year, fulfilled their lease, they just hold a normal amount of pictures, that's ordinary wear and tear, that's fair.

These items can often be argued, and for many things there's, there's like, for paint, most places will consider three years the normal lifespan. So, if you're a landlord and you're gonna go for something that's not ordinary wear and tear, or you wanna prorate that, you need to have an argument for it. A good, common sense, reasonable argument. And if you can't provide that, it's probably ordinary wear and tear.

Also, if you're a tenant, when you move in, most likely got a form that had to be in, I believe in three or five days, that's filling out the inspection, the condition noticed on your property, so often tenant's just fight filling that out. They're so happy to move in, and so busy, they don't want to deal with that silly piece of paper. That paper is for the tenant's protection. Tenants, that's for your own good. Fill out that paper, it's to protect you.

Also, doesn't hurt to take pictures. Digital pictures, take them on your phone, save them somewhere. All that, is gonna matter.

For landlords, the advice I give you is first of all, keep good records. Get that statement out within 21 days. Provide receipts. By all means, don't be greedy. And, don't be afraid to enlist the help of a Property Manager. Them serving as a referee, arbitrator in these times is money well-spent.

You wanna find out more about security deposits, property management, or anything real estate, we'd be more than happy to talk with you at the Mike Dunfee Group.

Видео Mike Explains: Return of Tenant Security Deposit канала Mike Dunfee Group