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Education for Justice |
FACT SHEET H-29 |
Fall
2011 |
SECURITY
DEPOSITS
HOW SOON DO I GET MY DEPOSIT BACK?
The landlord has to send you the full deposit with interest
or a written statement of why they are keeping your deposit. They have to send this within 21 days of your
move-out date. If the building was
condemned, and it was not your fault, the landlord has to return the deposit
within 5 days. Make sure the landlord
has your new address.
HOW MUCH INTEREST DO I GET?
1% per year. Let’s say you moved in August 1, 2010. Your move out was April 30, 2011. Your deposit was $900.00. This means you have to figure out 1% interest
for 9 months. First, figure out the
interest for a year, and then divide it to get the interest for each month.
|
$900.00 |
|
|
x
.01 |
(1% = .01) |
|
$ 9.00 |
Is the
interest for 1 year at 1%. |
To get the interest for each month you have to divide the
year amount by the 12 months in the year:
$
9.00 ÷ 12 (months) = $ .75
(75 cents) This is the interest for
each month of a year at 1%.
August 2010 through April 2011 is 9 months, so multiply the
monthly interest by 9:
|
$
.75 |
Interest per
month |
|
x
9 |
Number of
months there |
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$6.75 |
Is the total
you should get back with your deposit. |
So, $900 deposit, plus the interest ($6.75) means you should
get $906.75 back from your landlord.
If you have lived in your apartment or house since before
WHEN CAN A LANDLORD KEEP THE DEPOSIT?
A landlord can keep your deposit money for:
·
Unpaid rent or other fees that you agreed to – for example, replacing lost
keys. But
·
Money needed to repair damage you caused, but not ordinary wear and tear.
·
Lost rent if you moved out without giving proper
written notice. In this case the
landlord can probably keep the whole deposit.
If they can re-rent it quickly, you can argue that the landlord did not
lose a full month’s rent.
Your landlord can only keep the amount that these things
cost, not all of the deposit if there is some left over.
WHAT IS “ORDINARY WEAR AND TEAR”?
Ordinary
wear and tear are things like worn-out carpet, chipped
paint, and appliances that break because they are old. You should not have to pay for these things.
CAN I USE MY DEPOSIT TO PAY MY LAST
MONTH’S RENT?
No. Unless you have a different agreement with your
landlord, it is illegal to use your deposit to pay your last month's
rent. You risk having an eviction filed against you if you don't pay
rent. But, there is an exception to this rule if your landlord is losing
the building in foreclosure. You can use your deposit as your rent for
the last month of the 6 month redemption period. That's the last month before the bank
officially owns the property. It is 6 months after the house is sold in a
sheriff's foreclosure sale. If you are not sure when this is you can call
your county sheriff to find out which month is the last month of the redemption
period. See our fact sheet H-14
When Your Landlord Loses the Building for more information.
WHAT IF THE LANDLORD WON’T RETURN THE
DEPOSIT?
Start by writing the landlord a demand letter. Make sure you put down that address where the
deposit should be sent to. Explain why
you deserve the deposit back. Keep a
copy of your letter.
You can create a demand letter online through a quick
interview process. Click
here or go to www.LawHelpMN.org/formhelper
and look for “Security Deposit Demand Letter.”
WHERE DO I SUE FOR MY SECURITY
DEPOSIT?
·
Sue in
·
Go to the courthouse in the county where the
rental property is or where the landlord lives.
Fill out a complaint form with the landlord’s name and address, the
money damages you want, and a short explanation of your case.
·
There is a small fee. You don’t need to pay it if you have a low
income. Ask the court clerk for an IFP
(inability to pay) form.
You can create an IFP form to file through a quick online
interview process. Click
here or go to www.LawHelpMN.org/formhelper
and look for “Court Fee Waiver.”
WHAT MONEY DAMAGES SHOULD I ASK FOR?
·
You can ask for rent back if the apartment had
housing code violations.
·
Ask for your deposit, plus interest, plus any
filing fees or costs you have in bringing the case to court.
·
If the landlord doesn’t send you an explanation
within 21 days (or 5 days if your place was condemned), the law gives you a
“penalty” equal to the amount you are owed.
Ask to get this penalty amount.
·
If the landlord shows “bad faith,” you can get
additional “punitive damages” (money) up to $500. “Bad faith” means that they knew they owed
the money but kept it anyway. If the
landlord does not send you an explanation within 21 days, the court should
assume “bad faith” unless the landlord can prove good faith.
WHAT IS A COUNTERCLAIM?
The landlord can file a counterclaim saying that you owe
money. For example, they might say that
you did $1,000 damage to the place, and that your security deposit only covers
$800 of it. The court will hear the
counterclaim at the same time as your claim.
HOW SHOULD I PREPARE
·
Get your evidence together. If you have written documents, like a lease,
rent receipts, or letters to the landlord, make copies for the court.
·
If you have photos of the apartment that you
took just before you left, bring them to court.
·
Bring witnesses – people who saw the place when
you moved in and when you moved out.
They can testify that you took good care of it.
WHAT IS A SETTLEMENT?
A settlement is an agreement between you and the landlord to
end the lawsuit. A settlement is often
best. Even if you win in court, you may
have a hard time collecting the money.
An agreement that pays you right away may be smart. Make sure that any settlement is in writing, signed,
and dated. Take it to your hearing and
have the court approve it.
WHAT SHOULD I DO NEXT TIME I RENT?
·
Before you move in, do an inspection with the
landlord. Write down any problems with
the apartment, and any areas that are dirty or damaged. Have the landlord or caretaker sign the
list. Ask them to make all the repairs
before you move in. See our fact sheet, H-3
Looking for an Apartment.
·
Give proper written notice before you move out.
·
When you move out, do a
move-out inspection just like the move-in inspection. Have the landlord sign the list. Then you’ll have proof that you left the unit
clean.
·
Be sure you return all keys (get a receipt for
them), remove all of your belongings, leave the apartment clean and free of
garbage, and give the landlord a mailing address in writing. Take photos of how clean you leave it. Have a witness look at the apartment.
WHAT IF MY LANDLORD SELLS THE
BUILDING?
If the landlord sells, and you are still living in the
building, they have 60 days to return your deposit or notify you that they are
giving all or part of it to the new owner.
They can deduct for unpaid rent and charges for damage to the
apartment.
If the letter says that the old landlord is keeping part of
the deposit, you have 20 days to send an objection to the new landlord. If they don’t change how much of the deposit
the old landlord turns over, you can sue the old landlord in
If the old landlord does not turn over any of your deposit
to the new owner, the new owner can ask you to pay a new deposit.
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MN Legal Services Coalition |
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© 2011
Mid-Minnesota Legal Assistance. This document
may be reproduced and used for non-commercial personal and
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other rights reserved. This notice
must remain on all copies.
Reproduction, distribution, and use for commercial purposes are
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To find other Legal
Aid Society materials, including the fact sheets mentioned in this
document, go to www.lawhelpmn.org/LASMfactsheets.