Security Deposits: What They Secure and How to Get One Back

These are listed in the order worth acting on, which with the mechanics of a rental security deposit is not the order they are usually presented in.

What the deposit is for

A security deposit is held against damage beyond normal wear, unpaid rent and sometimes cleaning costs specified in the lease. It is generally your money held by the landlord rather than a payment, which is why its return is a legal question rather than a favour.

Many jurisdictions cap how much can be taken, require it to be held separately, and set deadlines for its return with an itemised statement. Some require interest to be paid on deposits held for long periods, and this varies considerably between states and cities. Find out your local rules at the start rather than at the end, since they determine what you can insist on.

Normal wear versus damage

Normal wear and tear is the deterioration expected from ordinary living, such as faded paint, minor carpet wear and small marks on walls. Damage is something beyond that, such as holes, stains, broken fittings or the consequences of neglect.

At the counter, the line between them is a frequent source of dispute and is interpreted differently by different landlords and different courts. Deductions for repainting an entire flat after ordinary occupation are commonly challenged and are sometimes not permitted at all. Knowing the distinction gives you the vocabulary to challenge an unreasonable deduction rather than accepting it.

The first day is what decides it

Photograph and video every room in detail on the day you move in, before furniture arrives, with the date recorded. Complete any move-in condition form thoroughly, note every existing defect however trivial, and keep a signed copy yourself.

Email the documentation to the landlord so there is a timestamped record that they received it rather than only that you made it. Pay particular attention to floors, walls, appliances, worktops, bathroom fittings and anything already damaged. Every hour spent on this is repaid at move-out, when the burden of showing the flat was already marked falls effectively on you.

During the tenancy

Report maintenance problems in writing as they arise, since damage caused by an unreported leak can become your responsibility. Keep the correspondence, because a landlord's failure to fix something they were told about is relevant to any later deduction.

For a household starting from zero, ask before making changes such as mounting a television or painting, and get permission in writing. Small repairs done properly during the tenancy cost less than deductions calculated by a landlord's contractor afterwards. Keep receipts for anything you paid for that was the landlord's responsibility.

Moving out

Clean thoroughly, including appliances, and repair small things such as nail holes where the lease requires it. Photograph everything again in the empty flat, in the same order as the move-in set so the comparison is obvious.

The thing nobody tells you: request a walkthrough with the landlord before handing back keys where local law allows it, since problems identified in person can often be fixed. Provide a forwarding address in writing, because deposit return deadlines usually run from the date the address is supplied. Keep a copy of the keys handover, since the tenancy end date is sometimes disputed.

Immigration rules change with the administration, and processing times change faster than that.

If it is not returned

Local law usually sets a deadline for returning the deposit with an itemised list of deductions, and missing it can carry consequences for the landlord. Write formally requesting the deposit or the itemisation, referring to the relevant local requirement and keeping proof of sending.

In the first year, small claims courts handle these disputes cheaply and without lawyers in most states, and tenants with photographic evidence do well in them. Local tenant advice organisations will often review a situation without charge and know how local courts treat these claims. Where a substantial sum is at stake, a short consultation with a local attorney is proportionate.

Everything above, in order of what to do first

1. What the deposit is for. A security deposit is held against damage beyond normal wear, unpaid rent and sometimes cleaning costs specified in the lease.
2. Normal wear versus damage. Normal wear and tear is the deterioration expected from ordinary living, such as faded paint, minor carpet wear and small marks on walls.
3. The first day is what decides it. Photograph and video every room in detail on the day you move in, before furniture arrives, with the date recorded.
4. During the tenancy. Report maintenance problems in writing as they arise, since damage caused by an unreported leak can become your responsibility.
5. Moving out. Clean thoroughly, including appliances, and repair small things such as nail holes where the lease requires it.
6. If it is not returned. Local law usually sets a deadline for returning the deposit with an itemised list of deductions, and missing it can carry consequences for the landlord.

The takeaway

Document everything on day one, because that is the evidence the dispute turns on. This article is general information, not legal advice.

The first year is administration. The second one is where the life starts.