
Reasons to Keep a Security Deposit
The main reason that landlords get into trouble with security deposits is that they make deductions that are not legal or allowed. Normal wear and tear is expected, and the landlord’s responsibility to repair. So, you will have to pay to repair those small nail holes in the walls from where pictures were hanging and those scuffs on the wall from where the sofa was resting. The things that you can deduct for include:- Overdue or unpaid rent.
- Property damage from abuse or neglect.
- Lease violations.
- Unpaid utility bills.
- Cleaning costs.
Offering a Walk-Through Inspection
Tenants are entitled to a walk-through inspection before they move out. During this inspection, the landlord will point out what might be deducted from the security deposit, and the tenant has an opportunity to fix any of those problems. You’ll need to notify the tenant in writing at least 48 hours in advance that this inspection is available, and it should be scheduled within two weeks of the move out date. The tenant does not have to agree to this inspection, but you’re required to offer it. Once you complete the walk-through, provide the tenants with a list of all repairs that need to be made before the final inspection.Security Deposit Timelines
California law requires you to return a tenant’s security deposit within 21 days of the tenant moving out. You’ll also need to include an itemized list of any deductions that were taken. If the repairs have already been made, include invoices and receipts with the itemized list. Your documentation must also show how much of the deposit was returned to the tenant.California Security Deposit Penalties
