With all the hullabaloo surrounding a beginning tenancy, it can be easy to forget about the security deposit and the laws that govern it. Knowing that you are in the right with the law regarding the deposit can ease some tension, so the following procedures should be read carefully. First off, security deposits may not exceed two months’ rent and must be placed in an escrow account under terms that remove it from the claim of any creditors of the landlord and allow it to be transferred to a subsequent owner of the premises or to the tenant. Upon request by the tenant, the landlord must disclose the name of the institution and account number where the deposit is held.
Where the security deposit can be applied includes covering the costs of storing and disposing of unclaimed property, nonpayment of rent, and nonpayment of utility charges that the tenant is required to pay directly to landlord, as well as any damages to the premises caused by the negligence or bad intent of the tenant. No portion of the security deposit may be used towards last month’s rent or any other fees and charges.
Where the security deposit can be applied includes covering the costs of storing and disposing of unclaimed property, nonpayment of rent, and nonpayment of utility charges that the tenant is required to pay directly to landlord, as well as any damages to the premises caused by the negligence or bad intent of the tenant. No portion of the security deposit may be used towards last month’s rent or any other fees and charges.