When Can a Landlord Legally Deduct From a Tenant's Security Deposit
Landlords often ask when, if ever, they can legally deduct from a tenant's security deposit. This article explores the legal grounds for such deductions and provides real-life examples to illustrate the complexities.Legal Grounds for Deductions
Landlords are entitled to use part or all of a tenant's security deposit for specific, legitimate reasons. Common scenarios include: Repairs to the Apartment: Deductions from a security deposit are permissible if the tenant has caused damage that necessitates repairs. For example, if walls, appliances, or other fixtures are broken due to negligence or misuse. Re-painting: If the tenant has modified the apartment's appearance (e.g., painting walls) and did not return it to its original state, the landlord can reasonably take the cost of re-painting from the security deposit. Hiring a Dumpster: Tenants often leave behind items they wish to discard. If the landlord incurs the cost of disposing of these items (e.g., cleaning and removal of unwanted furniture), this expense can be covered through the security deposit.Reimbursing for Damages and Unpaid Expenses
A landlord can only deduct from the security deposit if the tenant has caused damage or failed to pay certain expenses. Here are more details on permissible and impermissible deductions:The Cost to Repair Damage
If a tenant has caused damage that requires repair, the landlord may use the security deposit to cover these costs. For instance, if a tenant breaks a window, the landlord can deduct the cost of replacing the window from the deposit.If the tenant fails to clean or sanitize the apartment properly, this can be considered as damage. Similarly, if the tenant does not return the keys and the landlord incurs costs to change locks, this expense can also be reimbursed from the security deposit.
Rent Remaining Unpaid
Security deposits are often used to cover unpaid rent in case tenants vacate the premises without giving notice. However, landlords are not allowed to use the deposit to generate a profit. They must ensure that the deposit is only used to cover the actual unpaid rent and associated expenses.Other non-negotiable expenses, such as:
Electricity bills Water bills Heat and gas bills Subtenant fees (if applicable)A Real-Life Example
Consider a landlord named John who rented a shop to a medical tenant for a period of one year. The rental agreement included a clause prohibiting subleasing without John's permission. Unfortunately, the tenant subleased the shop to an unknown person who then used the shop to rob medicine and illegally sell it. This person also failed to pay rent, distributors, and left the area with a permanently switched-off mobile.John was left with a shop that needed repairs (e.g., painting and cleaning) and owed money to the previous tenants. To recover these losses, John used the shop tenant's security deposit to cover:
Remaining 4 months of rent Electricity bill Painting and cleaning charges In this case, the security deposit was used appropriately to cover both damage and unpaid expenses as per the contract.