We recently discussed how landlords are not allowed to keep security deposits for the normal wear and tear in a rental space. There is always going to be some level of minor damage in a home or apartment. It could be as simple as a scratch on the floor from moving a couch or small holes in the wall from hanging pictures. This is to be expected and landlords cannot keep the deposit to cover these costs.
So why can they keep a security deposit? Below are four potential reasons:
Unpaid rent
One of the top reasons to use a security deposit is simply because it ensures that the rent gets paid. If the tenant misses the last month and moves out, the landlord can keep the deposit to cover the balance.
Unpaid utilities
This only really applies if the utilities are in the landlord’s name. If they are in the tenant’s name, the debt goes with them. But if they are in the landlord’s name and the tenant has not provided the agreed-upon compensation, the security deposit may cover that loss.
Major damage
If there is significant damage to the unit, the landlord can also use the security deposit to make repairs. Say that the tenant broke the windows on the lower level of the house and they need to be replaced, for instance. It goes beyond normal wear and tear.
Some cleaning fees
In some cases, cleaning fees may be covered, but not always. It would have to be significant, such as deep cleaning a carpet after the tenant had a pet in the unit. Simple issues, like washing windows or sweeping up, likely do not qualify.
Disputes over security deposits are common, and the parties involved must understand their legal options.