In the world of property management, one of the biggest sources of stress (for owners, property managers and tenants) is settling security deposit disputes. In this feature, we'll offer simple strategies for making it through the move-out process satisfactorily, and without losing your deposit.

                However, before we begin, we want to stress that when or if security deposit disputes arise, your property manager at Signature Realty & Management is just serving as an agent or bridge between you as the tenant and the owner of your rental property. While we can work to help communicate between the two of you, we have no authority to make the final calls or decisions. Ultimately, our best course of action is to prepare you for the move-out process ahead of time so that you can make the best and most informed decisions as your lease ends.

Diligence Should Start at Day One

                Avoiding future problems in the security deposit arena starts with having a solid understanding of the terms of your lease. Many new renters are so excited to get moved into their new home that they forget to familiarize themselves with all the fine print. So, Step One of success is keeping a ready copy of your lease and getting acquainted with the stipulations yours outlines.

                Step Two is being thorough and pro-active regarding your Move-In Inspection and Condition Report. This inspection will be performed by your property manager and then sent to you for review. You will have a limited time to verify the condition of the property, identify any other potential issues or dispute the condition of rooms or items as listed in the inspection report. This will serve as the baseline for any future claims and disputes and it is your responsibility to take proper action from Day One to protect your deposit.

                Once you have agreed upon the property condition report with your property manager, you can help protect yourself from future problems with Step Three - clearly documenting all requests for repairs, photographs of problem areas and any communications regarding these items in a file folder designated to your rental home. Over time, as issues arise or repairs are needed, you should further document these requests, verifications and communications. Don't wait or attempt to handle repairs yourself without express authorization from the property manager and the property owner. If not, you might wind up liable for the repair bill!

When It's Time to Move

                If you've taken each of these three preventative steps, you're already ahead of the game. However, you'll need to follow some procedures and protocols when it's time to move. First, you need to submit your notice to end your tenancy within the timeline outlined in your lease. This information is found in the third paragraph of your lease. If you are breaking your lease, you should work hard to find another tenant willing to rent the unit, because if you don't and the property sits vacant, you still owe rent until the end of your lease term.

                Next, if possible, arrange with your property manager to be present during the move out inspection. This will allow you to have a solid understanding of any damages or needed repairs and work with your manager to remedy the issues before they can be charged to your security deposit. If you have hired cleaning crews, carpet cleaning companies or any other move-out services, be sure to document your receipts and expenses for later, in case the work is called into question. However, please understand that merely hiring a company isn't enough – the company hired must do a thorough and acceptable job. If not, you'll still be on the hook!

                Your next step is to make sure that you provide your property manager with a forwarding address. If you fail to do this, it can make receiving your deposit back next to impossible. After you have moved, keep an eye out in the mail. You'll soon either receive your deposit back in full, a partial deposit with an explanation of the deducted fees or (if you've caused considerable damage or back rent) you could wind up not only losing your deposit, but also receiving an additional invoice for the damages.

                If there are no charges, your deposit will be returned to you within 15 days of completing your move-out (once keys have been returned, etc.). If the property owner decides to keep all or a portion of your deposit, they must notify you within 30 days of the termination of the lease. However, if you haven't completely moved out of the premises or returned the keys, the clock hasn't even started ticking. If you are notified that all or a portion of your deposit is being retained, it will come via certified mail and you only have 15 days in which to dispute the claim against your deposit.

How to Handle a Dispute

                At this point of the game, the ball is out of our hands as the management company. If you have a further dispute regarding the deposit, you'll have to take it up with the property owner. If you do work out some sort of arrangement, make sure that you get it in writing, complete with signatures. This will help support your case should it make it to small claims court.

                If you can't work out an agreement, the next step is to write a demand letter to the landlord asking for the return of the deposit. If you take this route, it's advised to use registered mail, clearly outline your complaint, provide any documentation that supports your argument, outline exactly what you want for a successful conclusion, refer to the state security deposit law and inform them that you are willing to take the case to small claims court if needed.

                Ultimately, at the end of the day, clear organization and communication are the best defenses against security deposit disputes. Although we at Signature Realty & Management don't get to make any final calls regarding your deposit, we can work together to make sure that any potential conflicts are resolved quickly and fairly.

Written By Signature Staff Member: Jennifer Gibbs, Marketing Director