Here's something worth discussing with Virginia renters -- how can Virginia make renting more palatable? I'll start with one wallet issue -- security deposits. I cynically told someone just a few days ago that as a renter in Virginia, you can consider your security deposit lost the minute you turn over the check -- it's just an extra expense.
In the "10/30 Bits Bucket" blog reader Tibex asked where to find a lawyer to recoup his/her security deposit. The landlady thinks she can remodel the house on the tenant's dime. Others chimed in and told their security deposit horror stories. Our last landlord also decided the house needed new siding, etc. to make the new buyers happy and "meet all of their requirements for the sale," so he kept our security deposit of $2,000. (And just like Tibex's situation, the real estate agent was in complete cahoots in order to make the sale, and did other things to make our lives miserable).
To help answer Tibex's main question, at the time I contacted a lawyer for a nominal fee and was told that my best answer for a security deposit's return was small claims court, which I didn't bother to pursue because I decided that the time and stress wasn't worth it. I was saving money on housing in other ways, and the landlord had lost $140K on the house and probably wouldn't be fun to take to court.
I think Massachusetts' laws on this issue are more tenant-friendly:
And if the landlord fails...In contrast, here are some of the anemic Virginia regulations, which first warn the tenant to do steps a,b, and c, and then hope they've done everything to get their deposit back. Then after that:to deposit the security deposit into a bank account; to return the security deposit (or balance after lawful deductions) with interest within 30 days after termination of tenancy; or to transfer the security deposit or last month’s rent to the new landlord;
... you are entitled to the immediate return of your security deposit AND triple damages, plus court costs, and reasonable attorney’s fees. You also are entitled to triple damages, court costs, and reasonable attorney’s fees if the landlord fails to pay interest on the last month’s rent within 30 days after termination of tenancy.
Deductions from the Security Deposit:And that's just about it for Virginia. Certainly no triple damages here. Hey, I'd settle for double, and if attorney's fees were covered, tenants like Tibex would have their day in court.
If the landlord makes any deductions from the deposit, a written, itemized accounting of how much is being charged for each item must be sent to the tenant. If the landlord fails to provide such an accounting within 30 days after the tenant moves out, the landlord may forfeit the right to withhold any part of the deposit. Furthermore, the deductions taken from the deposit must be for actual damages suffered by the landlord.
How to Dispute Deposit Deductions
If a tenant receives a list of deductions, it is possible to dispute items on that list. The deductions should be addressed by the tenant in a letter sent to the landlord. The demand letter should include a response to each of the deductions, explaining which charges are being disputed and why. The tenant should keep a copy of the letter and send the original by certified mail, return receipt requested.
If the tenant receives a partial refund along with the list of deductions and wants to dispute some or all of the deductions, the tenant may want to refrain from cashing the check. If the tenant must cash the check then the tenant should tell the landlord in the letter that even though the check has been cashed, it does not mean the tenant agrees with the amount of the check.
8 comments:
This is part of what a lease I use as a landlord with regard to security deposits:
Within 30 days after termination of the tenancy and vacating the Premises the Landlord shall return to the Tenant
any remaining amount of the Security Deposit, (or a statement showing charges to be paid against the deposit) provided
the Tenant has performed all obligations under this Lease, returned all keys, passes and documents, and surrendered the
Premises in the same condition as at the beginning of the Lease Term, except for reasonable wear and tear. Unless
evidence of payment of final utility bills has been provided to the Landlord, a minimum of $100.00 may be withheld from
the Security Deposit to pay any unpaid utility bills.
If you think about it, a landlord could lose much more than the typical one month security deposit. Also, a landlord has to go through the same steps (small claims court, lawyers) as the tenant in order to attempt to recover additional charges. The only leverage a landlord really has is the ability to report the abuse to a credit bureau and/or not provide a good reference.
The key is to have clear lease provisions regarding the security deposit and to thoroughly vet a tenant to reduce the likelihood of security deposit issues. The only area somewhat left to interpretation is "reasonable wear and tear". That is the purpose of the initial and final walk through inspections, which should include both tenant and landlord taking photos of the premises before and after. The tenant should also report any deficiencies as soon as possible.
That said I know many landlords attempt to automatically keep the security deposit to cover cleaning and painting (if not strictly prohibited by law.) As a tenant I would refuse to rent/lease under these provisions. The lease clause I use above precludes this (although I require the tenant to professionally clean the carpets prior to lease termination).
On residential leases, I too generally steer potential clients toward small claims court. The reason is not that the do not have a case, the reason is, as Harriet suggested, its often not worth the time or the cost to get an attorney involved. Its a shame but thats the reality of the legal system.
I will say the one thing I would look for if I was a tenant was a clause in the lease that said if the parties went to court, the prevailing party would pay all attorneys fees. Landlords know that even if they are in the wrong, most tenants do what Harriet did and decide its "not worth it"
That said, if the lease has a prevailing party clause (1) an attorney would be more likely to take the claim up for you and (2) the mere threat of having to pay attorneys fees (both his and yours) is a decent motivator for them to settle.
Thus you may not get everything you want but my experience is say a 1/2 or 2/3 recovery in very little time (via negitiated settlement) is more cost effective than a full recovery over a protracted period of time. A prevailing party clause does not guarantee this outcome, but it certainly increases your chances.
Harriet,
This wouldn't happen to be the landlord we had a discussion over about a year ago?
Having gone through most of the process and actually won my deposit back (didn't go all the way to small claims court but it would have). I would agree, landlords abuse the system b/c most tenants don't want the hassle. It's a two-way street b/c as lou mentioned if you skip out 3 months early the landlord has to go through the same process to get money from you.
My deposit was way less than 2k . . . but I wasn't going to let it go.
I have no tolerance for thieves, you muck with me, I don't care about the amount (be it $50 bucks), I will sue you butt.
The principle matters to me . . . I don't care about the money (money doesn't really matter in this life), it's the principle that you have violated my property, my rights, and me . . . and I will come after you.
In Buenos Aires a year ago, 3 thieves picked my wife's pocket . . . I was about 20 feet ahead of her and I barely saw them . . . I didn't even think I just went after one of them and confronted him . . . I was 90% sure the guy I confronted was one of the guys (it was a crowded subway and they were good . . . VERY GOOD pickpockets) . . . but I wasn't absolutely positive (I had just got a glipse, i.e. approx. build that was it) . . . if I was absolutely 100% positive it was him I would have tried to take him out . . . but 90% is not 100%. And morally, I cannot commit violence on an individual who I do not know 100% has violated my family.
Still if anyone knows going after a thief in Bs. As. isn't exactly a safe proposition.
If there is one thing that a free society is based upon it is that theft and fraud ARE NOT tolerated.
If moral citizens do not stand up to the immoral citizens who commit theft and fraud, IMO it means that they are complacent in allowing theft and fraud to happen.
I'll just say this . . .heaven help the person who ever attempts to break into my house. My family and I will NOT be VIOLATED!
Also, check your leases carefully before you sign. You can often get modifications made. My lease states that the security deposit is held in escrow for the duration of the lease. There are some out clauses for the landlord, but basically he can't touch it unless we terminate the lease, or do damage to the property.
You still might run into the standard problems at the termination of the lease, but at least the landlord hasn't used the deposit to help line his pockets in the meantime.
Somewhat of a tenant law issue...Summarized below, this seems like a pretty sweet way to bilk people as a landlord. Advertise place at one price and collect application fee, then change price.
We looked at a place run by Professional Property Management of Annandale (that had massive errors in the listing, btw). We filled out an application. It took them a week to get back to us as they had trouble calling perfectly functioning phone numbers on the application. We started jumping through their hoops to get the lease signed, including taking off time to get the lease notarized. As we were sending it in, (and of course after we had stopped looking at other places), they called to tell us the rent had been raised and we would have to sign another lease. Maybe they thought they had us in a corner. I took off work to find another place ASAP, as we decided we wanted nothing further to do with these people, or management companies in general.
re Professional Property Management of Virginia (PPM):
We actually used them a number of years ago to manage our property. Ended up firing them for a number of issues including incompetence. After trying another one we decided to manage the property ourselves. We and our tenants are much happier.
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joyce
www.webtraffictrigger.com
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joyce
www.webtraffictrigger.com
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