If a landlord or agent takes a security deposit, it is in the tenant's interest to agree with the landlord on the present condition of the premises. In some states, a signed statement of condition is required. The statement should contain a comprehensive list of existing damages. It may also be wise to take notes, and to photograph existing damage and the general condition of the apartment.

Returning the Deposit and Deductions

The landlord must return the security deposit within a fixed time (typically thirty days) after the termination of tenancy. However, the landlord can usually deduct for any unpaid rent which has not been withheld validly or deducted under the law, and any reasonable amount necessary to repair any damage caused by the tenant. Pet damage can also be deducted. The tenant does not have to pay for reasonable wear and tear associated with normal use. However, the tenant is responsible for maintaining the apartment in a clean and sanitary condition, free of garbage and rubbish.

If the premises are damaged, the landlord must typically provide the following within thirty days after the tenancy ends:

1. a detailed list of damages listing their nature and extent, and the repairs required to remedy them; and

2. written evidence such as estimates, bills, invoices, or receipts, indicating the actual or estimated cost of these repairs.

The landlord must return the balance of the security deposit (if any) after all proper deductions have been made. If the landlord fails to return the security deposit (or balance after lawful deductions) with accrued interest within the prescribed time after termination of the tenancy, or fails to furnish the tenant with an itemized list of damages within that time if deductions are made for damages, the tenant may sue the landlord according to state law. Many states' statutes provide for damages in triple the amount of the security deposit withheld.

Typically, state courts make some provision for easy resolution of security deposit disputes, such as in small claims, conciliation, or landlord/tenant court. If you are involved in a dispute over a security deposit either as a landlord or as a tenant, call your local court to discover your options.