Security Deposits: Advice for Landlords and Tenants
Residential landlords require security deposits as necessary safeguards against property damage left behind after tenants move out. Landlords have seen it all: ripped blinds, crayon markings up walls and abandoned couch cushions and box springs.
On the other side of the coin, tenants eager to recoup their security deposit routinely lament the lack of consideration from landlords. When it’s time to move out, it can be difficult for renters to recoup their security deposit.
As necessary protections, landlords must understand the laws impacting security deposit retention that are specific to the city of Seattle. Tenants must follow precautions and understand their rights as well. Holmquist + Gardiner frequently advises landlords and tenants on how to resolve security deposit disputes.
Below, we provide guidance that both landlords and tenants will find beneficial. When looking to retain or recoup a security deposit, it’s a good idea to know the restrictions impacting you and your counterpart.
Guidelines for Landlords Operating Within the City of Seattle
Landlords must understand Seattle’s rules and requirements to remain within their legal boundaries. Across much of the State of Washington, the security deposit can be any amount. However, the city of Seattle is different: for residential landlords operating within Seattle city limits, the security deposit amount cannot exceed one month’s rent.
Once the security deposit is received, it must be held in a separate bank account from any other funds, such as monthly rent. The specific bank and its address must be provided to the tenant. If this information is not shared with the tenant, then the landlord forfeits use of the full security deposit amount.
Landlords may include language within a leasing agreement that requires a specific, nonrefundable fee for the future cleaning of the unit upon the end of the lease agreement. Carpet cleaning is a common nonrefundable fee that is charged for every tenant. However, while these nonrefundable payments are separate from the security deposit, both the security deposit and any nonrefundable fees cannot add up to more than one month’s rent for rentals within the city of Seattle. Adding these specific fees reduces the final security deposit amount a landlord can request, so it is best to take caution in adding too many specific fees.
Once the renter moves out, landlords have 21 days to deliver a written state of security deposit retention to the former tenant. This includes descriptions of what portion of the security deposit is being retained, and why. If this task is not provided after 21 days, the landlord is required by law to return the full security deposit amount back to the tenant. The tenant is also allowed to recoup attorney’s fees if they successfully challenge any charges for damages and this written statement is not provided. Therefore, it is vital that landlords provide this statements by the 21-day deadline.
Advice for Renters Eager to Recoup their Security Deposit
Tenants need to be extremely thorough on their initial walk through of the unit. Renters have the opportunity to sign a checklist upon moving in and moving out. It’s a chance to document the state of the unit. On move-in day, don’t be afraid to be too nitpicky. If there is rust on the refrigerator, mark it down. A paint chip? Mark it down. Be thorough. Take photos and save documentation – it’s vital to provide evidence should a future security deposit dispute arise. Evidence is a tenant’s best tool against the word of the landlord.
It’s unlawful for a landlord to retain a tenants’ security deposit to resolve issues associated with “normal wear and tear.” However, this language is broad, and it can be difficult for both parties to define what constitutes the normal breakdown of carpets, drapes or minor scrapes that are common with consistent daily use.
Tenants: Don’t forget to read your lease agreement! Specific language in the lease agreement may strictly enforce rules regarding use and damage to the unit. A nail hole in the wall might be considered normal wear and tear, but if nailing a picture frame into a wall is prohibited within the lease agreement, the tenant is now liable to pay for repairs.
While multiple tenants within the same unit generally rely on a point person to negotiate with the landlord, all tenants sharing the lease agreement are liable for damages and should be involved with any negotiations or conflict resolution processes.
If a tenant and landlord are unable to resolve a security deposit disagreement, the remaining option is to seek legal resolution in small claims court. If the dispute is for an amount over $10,000, then the action cannot be heard by small claims court and must be filed with the superior court.
Seeking Resolution in Small Claims Court
If landlords and tenants cannot agree on the rightful ownership of the security deposit, both parties can seek to settle the disagreement in small claims court.
Small claims court brings the landlord and tenant before a judge. Generally, attorneys are not allowed to represent clients during these proceedings. When pleading a case before a judge, it’s important to rely on facts, keep the story and timeline straight, and provide adequate documentation. Once both sides have offered their brief argument, the judge makes a decision.
To prevent future security deposit disputes, it’s important for both parties to protect their interests by understanding the lease agreement and gathering sufficient documentation and evidence.
The talented attorneys at Holmquist + Gardiner are advocates for clients seeking to resolve legal disputes involving residential lease agreements and landlord-tenant issues. If you’re a landlord or tenant seeking guidance on how to protect your interests, contact an attorney today.
