As a landlord, you have many different obligations towards your tenants.

One of the most important is to protect the security deposit the renters give you because you’ll have to return it back at the end of the tenancy.

Dispute about that is the most common cause of conflict because sometimes the landlords try to keep the deposit themselves. They actually have the right to do it, but only in a few cases. 

Let’s see when a landlord can keep a tenant’s deposit, and the tenant can’t say a word against it.

Non-payment of the rent

The non-payment of the rent is considered a big violation of the lease agreement. 

In this case, the landlord has the right to keep all or just a part of the security deposit to himself to cover what is owed.

After all, the building owner deserves to get his payment for renting the place to someone. And if the tenant doesn’t fulfil his duty to pay the landlord, the second one has the right to get his money the best way possible.

The security deposit is the easiest way to cover these expenses.

Premature termination of the lease

The tenant’s premature termination of the lease agreement for no reason is also a serious issue. There exists, after all, a lease agreement that binds the landlord and the tenant to respect and abide by its clauses.

Every violation of this agreement has its moral and legal consequences.

This is why the landlord has the right to keep the security deposit as compensation after he checks the apartment for any problems and compares this check to the original check-in report to see the actual differences.

Cleaning costs

Usually, the landlord doesn’t have the right to keep the deposit if the cleaning after the tenant is from the standard variety.

But if there’s a lot of garbage and personal belongings left and the tenant refuses to clean it all out, the landlord has the absolute right to keep a part of the deposit to cover the cleaning expenses and his labour.

Fortunately, this kind of deposit retention is not so common nowadays because the tenants hire an end of lease cleaning service to get their security deposit back. This is an excellent practice because you can avoid many unnecessary disputes.

If the tenant owes money for bills and utilities

Even in our modern society, this kind of problem happens very often. The tenant just decides to disappear without even paying the last month’s bills. This behaviour is unacceptable, and the landlord has the full right to keep the deposit to pay these obligations.

According to the law, the tenant can’t say anything against it if the landlord can prove that the bills or utilities in question are really not paid. This is relatively easy to do if keeping track of the documentation and the business is legal.

If the tenants dispute the landlord’s claim, then the landlord may need to go to court to prove their case. This can be lengthy and expensive, so it is always better to have everything in order and avoid disputes whenever possible.

Damage

This is probably the most common situation when landlords refuse to return the deposit.

Sometimes tenants leave the place they rented in a horrible condition, and only the security deposit can help the landlord fix everything without counting big losses. 

But you should know that not everything is considered damage by the law. The small nail holes in the walls from hanging pictures and a few stains on the carpet are not considered real damage but only simple wear and tear.

The real damage is things like big holes in the walls or floors, big stains and holes in the carpets, broken windows and doors, not returned keys at the end of tenancy, and others. This is why the proper home inventory can be crucial because it can help you determine if the damage occurred before or after the tenants arrived. 

If the damage was done by the tenants, the landlord can keep the security deposit and use the money to fix and prepare the property for the next renters without losing any money.

Violations of the lease agreement

If the tenant violates any terms of the lease agreement, such as keeping a pet in a no-pet property or allowing more occupants than allowed, the landlord has the right to use the security deposit to cover any resulting damages or costs. 

However, the landlord must prove that the tenant violated the lease agreement and that the damages directly resulted from the violation. Landlords must document lease violations and corresponding damages to provide evidence if a dispute arises.

Abandoned property

If a tenant leaves the property without proper notice or fails to remove their belongings and perform an end of the lease cleaning, the landlord may be left with the burden of disposing of the property.

In this case, the landlord can use the security deposit to cover the cost of removing and storing the abandoned property.

However, the landlord must follow state laws regarding abandoned property, including providing notice to the tenant and holding the property for a certain amount of time.

Disputes and resolutions

If a landlord decides to keep a tenant’s deposit, they must provide the tenant with an itemised list of deductions and the reasons for them. The tenant has the right to dispute the deductions and seek resolution through legal means.

However, it’s essential to understand that the dispute resolution process can be lengthy and costly. Therefore, it’s best to avoid disputes by ensuring the lease terms are fulfilled and the property is returned in the same condition as when it was rented out.

In conclusion

As you can see, not always the landlord is the bad guy in the landlord–tenant relationship.

So, if you’re furious that your landlord refused to return your security deposit, think hard – maybe you’ve caused it somehow.

And landlords, be very careful and remember the cases when you can keep a tenant’s deposit – if you follow these conditions, the tenants won’t be able to say anything against it.