When you're a tenant, problems can arise. When renting a home or flat, many problems arise, ranging from house maintenance to determining what to do when your landlord withholds your security deposit. However, when security deposit issues arise, it is normal to want them solved quickly.
Continue reading as this article offers answers to this concern, especially since most states allow you to sue your landlord, it's essential to consider whether this move is worthwhile, along with the potential consequences that come with it.
Is it Worth Suing a Landlord Over a Security Deposit?
A significant portion of landlord-tenant disputes are centred on disagreements on whether a landlord was justified in withholding all or a portion of a tenant's security deposit. Bringing legal action against a landlord for withholding your security deposit may be worthwhile, especially if the amount is large, you have good documentation, and you follow the proper procedure. However, before you reach out to your local Baltimore property manager and take action, consider some essential factors.
To begin with, if your landlord has withheld your deposit without a legitimate reason, failed to provide you with an itemized list of deductions, or failed to return your deposit within the legally required period, you will have a valid case to sue. The security deposit must be indicated on the written lease. A security deposit for an unfurnished apartment cannot exceed 2 months' rent, while a furnished unit cannot exceed 3 months' rent. Many states allow deposit recovery in a lawsuit, and in some cases, for additional damages if the landlord did not act in good faith.
Secondly, you need to be able to prove your case. This means having a move-in and move-out checklist, photos, communications exchanges, and receipts. If your landlord has good evidence of damage or owed rent, your chances of success decrease.
Also, if you owe your landlord money for damages to the property or unpaid rent, if you sue, you may have a counterclaim by the landlord, and you could owe more than your security deposit. And the process can take time and involvement; while the small claims court is designed to be user-friendly, you should still prepare.
Lastly, if the stake is low, consider the value of your time and any court fees, though this is usually nominal in small claims court. For larger deposits or if you receive punitive damages, it is more likely to be worth your time. Furthermore, consulting with a tenant lawyer can make your rights more straightforward and increase your chances if it seems that the landlord is unscrupulous or if the situation is complicated enough.
What Can Happen if the Damages Exceed the Security Deposit?
A security deposit is intended to ensure that the landlord can cover their costs for repairing any damages and renovating the tenancy. As a result, a security deposit is the money the tenant gives the landlord if the tenant fails to vacate the tenancy following the lease terms.
The landlord has the right to bill the renter for the entire cost of fixing any damage the renter has caused and for any flaws that fall under the tenant's maintenance responsibility. This claim will initially be deducted from and frequently covered by the security deposit, along with claims for renovations.
However, the renter will owe the landlord money if the claim exceeds the security deposit. This is because there is no cap on the amount that the landlord can charge the renter for the security deposit. Theoretically, there is no limit because the tenant is responsible for paying for all damages they created. However, some landlords resort to legal action to recoup more funds. First, they must demonstrate that the tenant caused the damage; second, prove that the damage exceeded normal wear and tear; and third, the repair cost exceeds the security deposit. As an alternative, landlords might use mediation as a way to settle disagreements.
Alternative Solutions Other than Suing Your Landlord
There are many reasons tenants can sue landlords, with security deposit disputes being one of the main reasons. However, if you are having a dispute regarding a security deposit, there are many alternatives to undertaking a lawsuit that can be effective; each option will save you time, money, and anxiety, while possibly allowing you to achieve a fair outcome. Here are some you should know:
Direct Communication or Negotiation
If you believe you have taken reasonable care of the property and disagree with the deductions from your security deposit, you can discuss the fees with your landlord. Clearly explain your situation and ask for a reimbursement. You should communicate clearly and respectfully, mutually listen to one another, and demonstrate a willingness to compromise. You should also document all agreements or payments to one another in writing, and keep evidence and receipts. Resolving a dispute amicably, without going to court, can save you both a lot of time and money.
Mediation
Mediation is an alternative dispute resolution method if negotiations fail or prove impossible. Mediation is a voluntary and confidential process in which a neutral third party helps you and the other party reach a mutually satisfactory resolution. In mediation, the mediator does not make decisions; Instead, they facilitate communication and collaboration. Your municipality court, housing agency, or NGO can help you find a mediator. Mediation may be faster, less expensive, and less stressful than litigation.
Filing claims
If mediation has not been successful, or you don't have access to mediation, you can proceed by filing a claim in a small claims court or a housing court to pursue justice. You will prepare your claim, assemble the evidence, and present your arguments to a judge or jury. The court will then determine who is right or wrong and grant you an award of damages, or order the person to take/stop actions. Filing a claim can be costly, time-consuming, and risky, and should only be seen as a last resort.
Settlement
There are occasions when communications between tenants and landlords can reach an operational solution - for example, the tenant agrees to forfeit a portion of the deposit, and the landlord agrees to drop other claims (unpaid rent). This is undoubtedly an option if the tenant and landlord want to resolve the situation without causing further friction.
Final Thoughts
There is a lot of discussion and misunderstanding about security deposits among landlords and tenants. Tenants typically anticipate receiving their security deposit returned when they vacate, occasionally with interest. Many landlords often manage to return the security deposit appropriately.
However, if this isn’t the case, don't consider filing a lawsuit right away if you believe you should receive your security deposit back. Contact your property manager or landlord and make a compelling argument for your claim. Reputable landlords are eager to hear your side of the story and will work to reach a mutually agreeable and peaceful conclusion.
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