Legal Q&A: Security deposit disputes

August 22, 2016

Question: I had a tenant move out several months ago. I returned $600 of his $1,000 deposit. He disputes all but $50 of the deductions and has threatened to sue me. He also has not cashed the refund check. How long does he have to sue me?

Ted Kimball
Kimball, Tirey & St. John LLP

Answer: In California, the statute of limitations determines the time that you must bring suit to legally enforce a claim. For written agreements, it is four years from the time of the breach. For oral agreements, he statute of limitations is two years from the time of the breach.

Question: I rented to a married couple two years ago, and now the wife has moved out and filed for divorce. The husband is still living in the unit. The wife is demanding her portion of the security deposit back since she no longer lives there. What should I do?

Answer: California law does not require that the owner or manager account for the use of the security deposit until the rental unit is vacant and the manager retakes possession. At that time, the manager has 21 days to account for the use of the deposit to any named tenants.

Question: I have returned the balance of the security deposit to a former tenant after deducting cleaning charges and insufficient check bank charges. The former tenant claims that I cannot legally deduct the bank charges from the security deposit because that deduction was not specifically stated in the lease. What are my rights?

Answer: California law allows for the use of the security deposit to include other charges than just cleaning, damage and unpaid rent. There is no legal requirement that they must be specified in the rental agreement in order to be enforced by a court.

Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers, and Legal Articles, please consult the resource library section of our website.

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