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During the first year of a lease a landlord can charge no more than two months rent as a
security deposit. In the second year and in subsequent years, a landlord can charge no more than
one month's rent as a security deposit. After the tenant has lived in the premises for five years or
more, the landlord cannot raise the amount of the original security deposit if the rent increases.
If the security deposit is held by the landlord for a period exceeding two years and is an
amount greater than $100.00, the deposit must be placed in a bank account. Any time that a
security deposit is placed in a bank or banking institution, the landlord must notify the tenant in
writing, giving the name and address of the banking institution and the amount of the deposit.
Within 30 days after the tenant moves out, the landlord must provide the tenant with a
written list of any damages to the premises which the landlord claims were caused by the tenant.
Along with this written list of damages, the landlord must provide the tenant with payment of the
difference between the amount of the security deposit, including any interest earned, and the
actual amount of the damages caused by the tenant.
If the landlord fails to provide the tenant with a written list of damages within 30 days,
the landlord loses the right to keep any part of the security deposit and loses the right to sue the
tenant for damage to the property, even if the damage has been caused by the tenant.
If the landlord fails to provide the tenant with the difference between the security deposit
and the actual damages within thirty (30) days, the tenant may then sue the landlord for double
the amount of the difference between the amount of the security deposit and the actual damages
which the tenant caused to the premises. The landlord will have to prove the actual damages in
order to avoid having to pay double the amount of the security deposit to the tenant. This lawsuit
may be filed by the tenant in Magisterial District Court in the district in which the leased
premises is located. The landlord is not required to return the security deposit if the tenant's
rent is not paid up or if the tenant breached any other condition of the lease. Also, the landlord
will not be liable for any money damages for failure to return the tenant's security deposit if the
tenant does not provide the landlord with his new address or with a mailing address where he can
be reached at the time the tenant moves out. The forwarding address must be provided to the
landlord in writing. Although it is not required under law, it is a good idea to notify the landlord
of this address by certified mail in order to prove that the landlord received the forwarding
address.
The rights of the tenant with regard to the amount of the security deposit and the handling
of the security deposit are always applicable and cannot be waived by the tenant even if a clause
in the lease says so.
If you need an attorney and don't have one, the Lawyer Referral and Information Service can help.
Call Us Monday - Friday from 8:30 AM - Noon and 1:15 PM - 3:00 PM
at (814) 459-4411. |
