What Can a Tenant Do If The Landlord Improperly Retains a Security Deposit?

Getting Your Security Deposit Back

When renting a property, a tenant often provides their landlord a security deposit at the beginning of a lease agreement to provide financial protection and ensure the fulfillment of lease obligations. However, when a landlord wrongfully holds onto a tenant’s security deposit, it can create frustration and financial hardship for the tenant. In such cases, tenants have rights and options to address the issue. Our San Francisco landlord-tenant attorneys can guide you on what to do if the landlord improperly retains a security deposit.

At Steven Adair MacDonald & Partners, P.C., we can evaluate the specifics of your case and assess the strength of your claim. We will review the lease agreement, relevant laws and regulations, and any supporting evidence you have. We are dedicated to providing you with comprehensive legal advice regarding your rights and obligations as a tenant. 

This article will give you an overview of the steps tenants can take in San Francisco, California, to protect their interests and recover their improperly retained security deposit from a landlord.

• Understand the Law
• Review the Lease Agreement
• Document the Condition of the Rental Unit
• Communicate With Your Landlord
• Seek Mediation or Arbitration
• File a Complaint with the San Francisco Rent Board
• Small Claims Court

Understand the Law

As a tenant, it would be wise to familiarize yourself with the applicable laws and regulations regarding security deposits in San Francisco. Most states hold landlords to strict guidelines as to how to handle and when to return security deposits. Landlords who violate these laws may lose the deposit entirely or face hefty penalties. 

According to California security deposit laws, after a tenancy is terminated, a landlord has 21 days to return the tenant’s deposit in full. A San Francisco landlord-tenant attorney can help you navigate the state laws and ensure you get what you’re owed.

Review the Lease Agreement

The lease agreement should state under what conditions a security deposit will be withheld after your lease is up. As a tenant, it is important to carefully examine your lease agreement to ensure you understand the terms and conditions related to the security deposit. 

This includes any specific requirements for returning the deposit and deductions that may be made. It should also lay out the terms and conditions for getting the security deposit back – including the number of days the landlord has to return the security deposit to the tenant, as well as the move-out inspection requirements. 

Document the Condition of the Rental Unit

Before moving in, document the condition of the rental unit thoroughly. Take photographs or videos that clearly depict any existing damages or issues including holes or marks in the wall, as well as general wear and tear throughout the home. This evidence will be useful if a security deposit dispute arises. Send photos to the landlord at the beginning of the rental term, so that he or she can’t hold you accountable for existing damages.

At the end of your lease, or when you decide to move out, refer to your checklist again and inspect the same items, noting their condition. Since you are protected from paying for repair to items that were damaged when you moved into the unit, your documentation and photos will help you determine appropriate uses for your deposit.

Communicate With Your Landlord

If your landlord doesn’t return the entire security deposit within 21 days or if you don’t agree with the deductions, you can communicate with your landlord in writing to request the return of your security deposit. You can state the specific amount you are owed and include a deadline for the return. It’s advisable to send the letter via certified mail or email to have a record of the communication.

Seek Mediation or Arbitration

If direct communication fails, you can explore mediation or arbitration services offered by organizations such as the San Francisco Tenants Union or the San Francisco Rent Board. These services aim to facilitate a resolution between tenants and landlords without going to court. 

Arbitration is a method of resolving disputes outside of court. Parties refer their disputes to an arbitrator who reviews the evidence, listens to the parties, and then makes a decision. On the other hand, mediation means that an impartial mediator helps the parties ease the tension and come to an agreement together. Both mediation and arbitration will be cheaper than a lawsuit, usually less stressful, and often result in solutions that last.

File a Complaint with the San Francisco Rent Board

If mediation or arbitration is unsuccessful, you can file a complaint with the San Francisco Rent Board. They can investigate the matter and provide guidance on your rights and potential remedies.

Small Claims Court

If all other attempts fail, you may consider taking legal action by filing a lawsuit in San Francisco Small Claims Court. Filing a lawsuit can result in a recovery greater than the amount of your actual security deposit if the court finds that your landlord has acted in bad faith. You can file a lawsuit for both:

• The amount of the deposit
• Two times the amount of the security deposit in damages

As a tenant, you can sue for the amount of the security deposit that your landlord wrongfully withheld, up to the state limit. 

To prepare for small claims court, you’ll need to gather and organize all of the evidence that will support your case. This includes your notice of intent to move out, photos of the rental unit before you moved in and when you left, and demand letters. While you can represent yourself in small claims court, it’s still advisable to consult with our San Francisco landlord-tenant lawyer who can help you understand your legal rights and improve your chances of success.

How a San Francisco Landlord-Tenant Lawyer Can Help If The Landlord Improperly Retains a Security Deposit

California tenants have certain rights and protections when it comes to security deposits. If your landlord improperly retains a security deposit, our San Francisco landlord-tenant attorneys at Steven Adair MacDonald & Partners, P.C. can help you understand the state laws regarding the wrongful withholding of a security deposit, and what your best course of legal action would be. 

Our landlord-tenant law firm can provide legal guidance, assess the strength of your case, and represent you in court if necessary. We can help you recover your security deposit, along with a reasonable amount of damages suffered. Contact us now to schedule an initial consultation and learn more about how we can protect your rights as a tenant and the legal recourse available to you.