Opinions on security deposit from some landlords here

[Mrs. D]

So I talked to my landlord and she is going to renew my lease. For all its faults, this apartment is a great deal and I am very happy.

I just wanted to get an opinion from some of the landlords lurking here. When I rented the apartment last year, I put down $900 + 1 month's rent as a security deposit. In the past, my landlord had only charged 1 month's rent as security, but she got burned BAD by the previous tenant. The previous tenant only lived here a month before notifying the landlord that she couldn't afford the rent, was moving out, and LL could sue her all she wanted, but she had no money so she wasn't getting anything. There was also substantial filth and damage to the apartment when she moved out (after a month, I couldn't believe it!), and it also turned out former tenant didn't pay many of the utilities. I don't blame LL for increasing the deposit amount after that fiasco.

But now I've been in this apartment for a year. I believe I have shown that there is no risk of anything like what happened before happening with me. What do you think my chances of negotiating to get that extra $900 deposit back at the beginning of my new lease term are? If you're going to be nasty and say all tenants are leeches, don't bother giving your opinion. But if you've had a good tenant, please tell me how you would feel about this request.

 

[Alaska landlord]

Gee, such negativism.

Your chances are between zero and and 10%

You didn't post what state your in. That little tidbit of information is very important due to different state regulations regarding security deposits and how much can be charge on sign-0n of lease agreement.

 

[Mrs. D]

I'm in DC, legally, she can ask for up to 2 months rent as security. She's not violating the law, but I thought maybe I had restored her faith in tenants after a bad experience.

 

[Alaska landlord]

Most of us need to be taught once.

Your security deposit is still yours and should be returned if you return the property in good condition. But, it doesn't hurt to ask. The worst that can happen is that she says no.

 

[johnd]

What do you think my chances of negotiating to get that extra $900 deposit back at the beginning of my new lease term are?

Even if you had glass shoes or ruby slippers, and despite your statement: "I believe I have shown that there is no risk of anything like what happened": the "chance" is zero were I your LL. Nobody gets in (or stays) w/o sd.

 

[ecmst12]

OP is trying to get PART of her SD back, she still plans on LL having one months rent. I think that depends entirely on your landlord and your relationship with the landlord. Can't hurt to try.

 

[Mrs. D]

Hey ecmst12, thanks for actually reading what I said. Yes, I would still leave 1 month's rent on deposit for security, I was only interested in maybe getting the extra $900 above 1 month's rent back. I actually thought I might use some of it to make some improvements to the apartment (which she has approved, before you all jump down my throat).

It may benefit her to give it back. I don't know if I'm reading the DC law correctly, but it states that interest must be paid on a security deposit at the passbook rate for the escrow account the money is held in, and then later in the law states that a minimum of 5% yearly interest must be paid (no, it does not say "the lesser of passbook or min. 5%," it just says passbook in one place and min. 5% in another). There isn't a secure investment in the U.S. that pays 5% these days. Depending on how that law works in practice, she may be losing a lot of money holding an extra deposit amount.

 

[Gail in Georgia]

Well, all you can do is ask. Contrary to popular belief, many landlords are reasonable.

If you've been a good tenant (i.e., paid your rent on time, been reasonable in requests to have items fixed) your landlord may very likely agree to this. But again, it depends on your particular landlord.

Gail

 

[johnd]

Hey ecmst12, thanks for actually reading what I said.

Yeah...I read that as I was typing...and thought I deleted my post rather than submitting it. My snafu.

Either way:
1) there must be a reason the LL required a double sd; and,
2) If you think 5% is great...leave it in there for your entire tenure and let it grow until you move out, or rates increase (unless you really need the $).

 

[Mrs. D]

1.) Oh yeah, there was a reason for the increased deposit. The last tenant was a hot mess. Check out my OP for some of the details. It was worse than it even sounds there.

2.) I found the update to that regulation which changes it to the prevailing rate on Jan. 1 and Jul. 1, for the following 6-month period. The original law was written in the 70's, when rates were really high, and so now I'd be lucky to get .25%.

More importantly, I found the actual regulation (I was previously relying on a lawyer friend - not a property lawyer, but still - who got confused between Virginia and D.C.), and only 1 month's SD is allowed in D.C. So my new question is how much do you think it would peeve her if I asked for that money back? DH and I would like to stay here until we buy (probably 3-5 years, depending), and the LL is giving me lots of latitude. For example, I am solely responsible for the lease, and sub-let (w/LL permission) to DH so I could keep the place if we split. The rent is about $400 below market for the area, and with the right strings pulled she could take this place to prevailing market price easily (meaning no house for several more years). Or she could just non-renew me next year. I also give a lot, like handling all service appointments for repairs (including those I have to take time off of work for), doing all the yard work, and mediating the constant disputes between neighbors. I know there are no hard and fast facts you all could cite in this, but your opinion as landlords would be helpful.

 

[johnd]

1.) Oh yeah, there was a reason for the increased deposit. The last tenant was a hot mess. Check out my OP for some of the details. It was worse than it even sounds there.

I don't know what the previous tenant's mess has to do w/ your sd, but we'll just leave it at that.

...and only 1 month's SD is allowed in D.C.

If this is the case, he may not be entitled to keep the extra. You specifically wrote one month's sd and one month's rent. Many states treat all prepaid monies in excess of one month's rent as sd. So...you may want to check DC's statutes regarding prepaid monies.

 

[Alaska landlord]

I don't know if I'm reading the DC law correctly, but it states that interest must be paid on a security deposit at the passbook rate for the escrow account the money is held in, and then later in the law states that a minimum of 5% yearly interest must be paid (no, it does not say "the lesser of passbook or min. 5%," it just says passbook in one place and min. 5% in another). There isn't a secure investment in the U.S. that pays 5% these days. Depending on how that law works in practice, she may be losing a lot of money holding an extra deposit amount.

If you read the law carefully you will notice the word or a 5% interest account.

I found the following at rentlaw.com

Most Washington, DC landlords require tenants to pay a security deposit when they move in. In DC a landlord cannot charge you more than one month's rent as a security deposit, and it can only be collected once. The landlord must give you, in writing, the terms of your security deposit. Keep your copy, and be sure to get a receipt.
In the District of Columbia, the landlord must put your security deposit into an account that earns passbook value for a year. This interest must be given to you when you move if you have lived in the unit at least 12 months. Within 45 days after you move out, the landlord must either return all your security deposit plus interest or notify you in writing that all or part of the deposit will be used to cover expenses. The landlord must send you an itemized list of any repairs or expenses that are taken out of the security deposit. After the first notification, the landlord must return the balance of your deposit, if any, within 30 days.

Washington D.C. Landlord Tenant Law Security Deposits

Better do a little research to verify if you overpaid your SD.


I

 

[Mrs. D]

Alaska,

What you quoted was the exact same source I recently read. My rent is $1100. I paid $2000 security deposit. I have a receipt, and my lease states, "SECURITY DEPOSIT At the time of the signing of this Lease, Tenant shall pay to Landlord a security deposit of $2,000 to be held and disbursed to for Tenant damages to the Premises...It is agreed that no part of this deposit is to be applied toward the last month's rent payment."

Clearly, she overcharged me for security. Now, you all are well-informed landlords who wouldn't make a mistake like that. But let's say you did, how much would it irk you if a tenant pointed that out and asked for the money back?

 

[ecmst12]

I think it's a little unreasonable for you to ask anyone to predict the reaction of a person they have never met. I am not a landlord, but I think your request is reasonable, especially if you point out the actual law on this matter. But I don't know your landlord so how could I possibly tell you how she might react?

 

[MIRAKALES]

The security deposit is calculated on the potential tenant risk and potential property damage. More expensive premises require higher security deposits because of the better quality appliances, fixtures, and apparatus. Tenants that pose a higher risk are assessed based upon their rental experience, credit history, job stability, financial statements, etc. (or lack thereof) to assess their tenancy risk potential. (The usual reason for last months rent.) Depending on the community and the patterns of tenants, sometimes all tenants (including good ones) assume the negative risks by paying more security deposit due to the overall cost management of the premises.

The rent is below market value and there is an authorized occupant at the premises, in my assessment, the tenancy is high risk. There is the possibility that the authorized tenant (YOU) will move and the roommate fails to vacate. There is the possibility that the rent is not paid (for any odd reason) which means that the below market rent becomes the no market rent. Nevertheless, the former tenant’s issues are not relevant to the security deposit which only allows for one months rent maximum. The fact that former tenant moved out within first month of tenancy does not support the extensive property damages and unpaid utilities that were mentioned.

For the record, tenant paid $900 rent plus $900 security deposit (which happened to be equivalent to the rent amount). The statement "I put down $900 + 1 month's rent as a security deposit." indicates that tenant believes the security deposit may substitute for unpaid rent. Should tenant (YOU) not pay the rent for only one month then there is no security deposit to compensate for tenant damages to premises. Therefore, the likelihood of receiving a security deposit rebate is NILL to NONE.
(An answer already provided by several others.)

Tenant should request compensation for assisting LL instead of requesting a "security deposit rebate" prior to move-out. What is a "security deposit rebate"?