Security Deposit Dispute

dispute resolutionDeposit DisputesUnder California law, the provider of a rental unit is required to inform the tenant inwriting of the status of the tenant’s security deposit, within 21 calendar days of a tenant’smove-out (Civil Code Section 1950.5). If the provider of your rental unit doesn’t let you knowwhat has become of your security deposit within this 21-day period, or you disagree withcharges follow these steps:1. Ask the property provider, either over thephone or in writing, why there has been adelay in receiving your security deposit.2. Send the property provider a certified,receipt-return letter, either requesting thatyour deposit be returned to you in full orasking for an itemized list of charges forcleaning and damages (See Sample Letter #1on page 27). Unless you waive your rights toreceipts, property providers are required toprovide them for reconciliations in excess of$126.00. Don’t forget to keep a copy!3. If you are unhappy with your returnedsecurity deposit, gather together your moveinand move-out Inventory and ConditionReport, photos, and videos to review. Decidewhich charges you agree with and which youdisagree with. Feel free to meet with staff atCHO for help. Put your dispute in writingdescribing the reasons the deductions areimproper (see Sample Letter 2 on page 27)and include any evidence you have for thedisputed charges. State in your letter theamount you believe should be returned toyou. Send your letter certified, receipt-return.3. If the property provider still does notprovide a refund, an adequate accountingof your deposit, receipts, or return what yourequested, call or visit CHO to take the firststeps toward mediation with your propertyprovider.4. If the mediation process fails to producean acceptable outcome, CHO will give youinformation that you need to file a SmallClaims Court action. (Information on SmallClaims Court on page 30).5. New legislation makes it possible for a judgeto award tenants up to twice the amount ofthe deposit in punitive damages ifs/he determines that the property providerwithheld a deposit in bad faith. However,judges rarely award the maximum penalty.Common Misconceptions about Routine MaintenanceMany tenants (and property providers) are underthe mistaken impression that every time a rentalunit turns over, or a certain number of years havepassed, the landlord must supply a new paint jobor clean drapes and carpets or some other kind ofrefurbishing.Unfortunately for tenants, the law almost nevermandates cosmetic changes – even badlyneeded ones. Here are some of the commonmisconceptions regarding rental sprucing-up:Paint. California landlords are not required torepaint at specified times. Unless the paint createsa habitability problem – for example, it’s so thickaround the window that the window can’t beopened, or flaking lead paint poses obvious healthrisks – the landlord can just let it go.Drapes and Carpets. As long as drapes andcarpets are not so damp or full of mildew asto amount to a health hazard, and so long ascarpets don’t have dangerous holes or nailsthat could cause someone to trip and fall, yourlandlord isn’t legally required to replace them.Windows. You are responsible for fixing (orpaying to fix) a broken window that you oryour guest intentionally or carelessly broke. If aburglar, vandal, or neighborhood child breaksa window, however, the landlord is usuallylegally responsible for the repair. File a policereport and notify your landlord immediately.Broken windows can sometimes be a habitabilityproblem.Rekeying Door Locks. Unfortunately, landlordsare not legally required to change the locks fornew tenants. However, if you tell a landlord inwriting that you are worried about renting a unitsecured by locks for which previous tenants (andperhaps their friends) have keys, most landlordsrekey the locks. (If the landlord knows of yourconcern but does not respond, and you areattacked or your place is burglarized by someoneusing an old key, the chances of a landlord beingheld liable in a lawsuit go way up.) Californialandlords must, however, at least provide doorand window locks.26 UCSB Community Housing Office / www.housing.ucsb.edu

Sample Deposit Dispute LettersThe letters provided in this Guide are starting points for your own efforts to find aresolution for disagreements concerning your security deposit. Neither text is intended to bedefinitive. Adapt the text that most closely responds to your situation and reflects your ownconcerns. It’s important to avoid accusations and to maintain courtesy.Any letter that takes issue with a deposit refund should be signed by every roommate, with aprinted version of each name with each signature. We also recommend that you send a copyof the letter to CHO, indicating that you have done so with a “cc: Community Housing Office”notation after the signatures. If you do indicate that a copy has been sent to CHO, pleaseensure that a copy actually reaches us.Security Deposit Sample Letter #1- Where is my security deposit and/oritemized receipts?[Date]Dear [Property Provider]:The purpose of this letter is to inquire about my Security Deposit. As I am sure you are aware, I waspreviously your tenant at [address of rental unit] and regularly paid rent to your office. In accordancewith the lease, I vacated the apartment on [date], after cleaning in such a way as to satisfy all the criteriato which the rental agreement stipulated.It has now been [##] days since I moved out, but I have received neither a refund of my Security Depositnor an itemized accounting of any deductions from that Deposit. I am aware of my rights under Sectionl950.5 of the California Civil Code. According to the law, I should have heard from you no later than 2ldays after the date I moved out.I am now requesting that my security deposit of [$$$] be refunded to me. Please enclose an itemizedlist of any deductions posted against this deposit, together with copies of receipts supporting thosedeductions. If for some reason there are issues that need to be resolved beyond this letter, I am willing tomediate through the UCSB Community Housing Office.My first interest is resolving this as quickly and cooperatively as possible. Please contact me as soon aspossible concerning this issue. I can be reached at [phone number]. Please send my deposit and anyother relevant correspondence to me at this address: [tenant’s current address].Sincerely,[signatures and printed names and phone numbers]dispute resolutioncc: Community Housing Office*Security Deposit Sample Letter #2- I deserve more money back and this is why.[Date]Dear [Property Provider]:Thank you for sending the balance of our security deposit for [address of rental unit]. While we agreewith some of the charges, there are a few items that we have questions about or are contesting.• The carpet damage in the second bedroom was there when we moved in and we made noteof it on our Inventory and Condition report. It also appears on the Move-In Video we did withthe Community Housing Office. We will be happy to send you a copy of the DVD if thatwill be helpful.• You charged us $40 to clean the oven. We feel we left the oven clean and should not beUCSB Community Housing Office / www.housing.ucsb.edu 27

dispute resolutioncharged. Again, our Move-Out Video will clarify the condition of the oven upon our move-in andmove-out.• We also disagree with the $15 charge for the missing towel rack in the bathroom. While wedidn’t note it in our Inventory and Condition Report, our video shows that it was not therewhen we moved in.We would like to resolve these issues quickly and will be happy to send you a copy of our videotapes.We are willing to mediate through the Community Housing Office if necessary. Please send me therequested balance of __$__ by __date__. I can be reached at [phone number]. Please send my depositand any other relevant correspondence to me at this address: [tenant’s current address]. Thank you foryour prompt attention to this matter.Sincerely,[signatures and printed names and phone numbers]cc: Community Housing Office** This means that you have given us a copy of the letter; be sure that you actually do!Approaches to Security DepositDeductionsWhen attempting to understand securitydeposit deductions here are some localapproaches that might be helpful for you.While these suggestions are consistentwith the law, they are not necessarily thelaw in this area. For more information wesuggest you visit the California Departmentof Consumer Affairs website at www.dca.ca.gov/publications/landlordbook/catenant.pdfCarpets and Drapes “Useful Life” RuleNormal wear and tear to carpets, drapes,and other furnishings cannot be chargedagainst a tenant’s security deposit (page 22)but damage can be charged. One commonmethod of calculating the deduction forcarpet replacement prorates the total cost ofreplacement so that the tenant pays only forthe remaining useful life of the item that thetenant has damaged or destroyed.• For example: a tenant has damaged,beyond repair, an eight-year-old carpet thathas a life expectancy of ten years and areplacement carpet of similar quality willcost $1,000. The landlord can properlycharge only $200 for the two years’ worthof life (use) that would have remained if thetenant had not damaged the carpet.Repainting Walls “Length of Stay” RuleOne approach for determining the amountthat the property provider can deduct from thetenant’s security deposit for repainting, whennecessary, is based on the length of the tenant’sstay in the rental unit. The following is anapproach which assumes that interior paint hasa three-year life. (Three years is generally thestandard in the Santa Barbara area, although itdepends on the property provider.)Length of StaydeductionLess than six months........... full costsix months to one year......... two-thirds of costone to two years................... one-third of costthree or more years.............. no deduction• Using this approach, if the tenant livesin the rental unit for three years or more,the tenant should not be charged for anyrepainting cost, no matter how dirty thewalls are beyond normal wear and tear.More about Receipts• If property provider or property provider’semployees did the work, an itemizedstatement must describe the workperformed, including time spent and(reasonable) hourly rate charged.• The property provider can make a “goodfaith” estimate of charges in the itemizedstatement if the work cannot be done withinthe 21 days or the business doing the workhas not provided receipts (contactinformation for the business must beprovided). Within 14 days of completingwork or obtaining receipts, the propertyprovider is required to mail them as well asany refund from the estimate.28 UCSB Community Housing Office / www.housing.ucsb.edu