United Scams of Assholes
Security deposits should be held by the municipality. Should the landlord wish to claim it, they can prove their case in court.
Fuck the status quo forever. Unforgivable.
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Security deposits should be held by the municipality. Should the landlord wish to claim it, they can prove their case in court.
Fuck the status quo forever. Unforgivable.
This is literally how it works in other parts of the world - do you guys just have to trust that your landlord isn't going to decide that they'd rather just keep your money at the end of the lease?
In NZ, the landlord is required to lodge the bond with a government agency, and in cases where there is a dispute a special court will adjudicate and issue binding orders as to how the money is to be divided.
This is an area of law governed at the state level. Some states are much better than others. Personally, I have not lived in a state that has a 3rd party hold the money (and I'm not sure if any do that). I did rent in a state where any charges that the landlord claims that they shouldn't is met with triple damages. So if they keep $200 instead of the $100 of actual cost to repair something you broke, they owe you $300. It really incentivizes landlords to only charge accurately (e.g., not for standard wear and tear), and generally deposits were much lower there than in other states I've rented.
Lots of states also charge interest on any deposit money not immediately given back to the renter.
Meanwhile, in Japan, you typically give they landlord gift money at the beginning of your contract. Literally money that isn't a deposit on anything, doesn't cover rent--it's just a gift. A mandatory gift which is given in addition to the security deposit and first month's rent.
It's called "key money" in English. Not every rental requires it, but the majority do. Moving in Japan is expensive.
Yeah, key money is explicitly illegal in NZ - the only money you are allowed to collect is a bond of no more than 4 weeks rent (which has to be lodged) and the first weeks rent in advance.
The most common form of shady dealing is that the law requires that tenants leave the house in a "reasonably clean and tidy state" - landlords and the tenancy tribunal don't typically agree on what "clean and tidy" means, so "oh, when we did the hand over inspection we found some places you didn't clean absolutely spotless so we had to hire a cleaner and want to take that out of your bond" - if you question or challenge it they typically withdraw the claim because you were such a good tenant and just this once and not at all cos they are bluffing and know the tribunal would immediately tell them to get bent, but that requires you to a) know your rights and b) be willing to call them on it, and people are typically neither of those things.
Landlords will typically also add something to the rental agreement or whatever requiring you to have the carpets professionally cleaned before you leave - the tribunal has repeatedly held that this is unreasonable to require and as long as the carpets are clean then the landlord doesn't get to dictate how they were cleaned. Doesn't stop letting agents asking to see a receipt.
https://www.law.cornell.edu/wex/security_deposit
Basically yes.
Depends on the city and state. Plenty of places require deposits placed into escrow exactly for these purposes.
Same for the UK but also fuck you the landlord is going to get most of it anyway and if you complain we will give you back £50 to shut you up.
In my state the landlord is required to pay the security deposit back with basic interest that tracks savings account rates.
It’s not much, but there are laws in place, and more and more consumer protection laws put it place.
The USA was created by capitalism. We’re still going through a LOT of growing pains. Hopefully we’ll get there.
Hmm, ‘A special court’ possibly gives even too harsh an impression of a tenancy tribunal hearing to the 3rd-party litigation capital of the world! Mine was just over the phone, pre-covid, landlord was no show no answer, got the bond. The legal advice I got leading up to it was free and easy to access. To be fair though, OP is saying the landlord should need to legally justify withholding the bond in court by default, which isn’t exactly how it works in NZ, although the effect is similar in most cases.