Lease Security Deposit Situation!

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Retrospect

Bluelighter
Joined
Nov 5, 2006
Messages
336
Hey there!
Say you are renting a place that costs about $500 a month.. and the security deposit is $250. The landlord works with you and gives you time to pay it.. You pay $150 on it. So therefore you owe $100. Well in the course of time, apparently two small (like big eraser type small.. haha great example) dents are put in the wall.. and you get charged $70. Well now the landlord wants the rest of the $100 PLUS an additional $70 on top of that. So now he is making you pay $170 instead of the $100. Thefore you paid $320 all together. Can he do that rightfully?

In the LEASE it states & QUOTE:

" 3.1 Security Deposit. On execution of this Lease, Tenant shall deposit with Landlord in trust, a security deposit of $250.00 (the "Deposit"), as security for the performance of Tenant's obligations under this Lease. Landlord may (but shall have no obligation to) use the Deposit or any part thereof to cure any breach or default of Tenant under this Lease, or to compensate Landlord for any damage as it incurs as a result of Tenant's failure to perform any of Tenant's obligations hereunder. Landlord is not limited to to the Deposit to recoup damage costs, and Tenant remains liable for any balance. Tenant shall not apply or deduct any portion of the Deposit from any month's rent, including the last month of the rental term. Tenant shall not use or apply the Deposit in lieu of payment of Rent. If Tenant breaches any terms or conditions of this Lease, Tenant shall forfeit the Deposit, as permitted by law. "

That is what it states in the Lease. Now from what I understands that reads that any damage occured while Tenant is renting, the security deposit is used for "security" to fix the damages. BUT The landlord is not limited to this, say if damage occurs that adds up to more then $250.

Well the damage has not equal up to $250.. and is a mere $70.. but he is trying to get an extra $70 or Tenant will be evicted. Can he rightfully do that? Considering the "security deposit" is suppose to cover the damages. As long as the security deposit is paid, I guess i'm not seeing an rightful way to be kicked out for not paying the extra 70?

I have talked to a few people and they all agree with me in saying he has no right to do that.

Anybody?
 
$70 bucks is supposed to come out of the $250.00, but you might be screwed if you don't have a contract. It doesn't sound like you have one.
 
^ Sorry if I'm not getting something, but did he sign this lease? That would be a contract.
 
Johnny1 said:
^ Sorry if I'm not getting something, but did he sign this lease? That would be a contract.
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Would he not have breached the contract by failing to pay the full 250$ security deposit?
 
Okay.. Well while we are still on this topic.. Another question: If I understand correctly the "Security Deposit" is supposed to be put in a bank account and not touched until the end of term, correct?
 
Johnny1 said:
^ Sorry if I'm not getting something, but did he sign this lease? That would be a contract.
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My bad. I read his post totally wrong as if he had a verbal agreement for the security deposit. Drunken posting ftl.
 
Retrospect said:
Okay.. Well while we are still on this topic.. Another question: If I understand correctly the "Security Deposit" is supposed to be put in a bank account and not touched until the end of term, correct?
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Varies by state (and deposit amount and lease term). Some of these rules are specific to cities too. It is considerably more difficult for a landlord to seize or deduct from a security deposit in a tenant-friendly city, like New York. But on the other hand, there are landlord-friendly cities where you'd be lucky to get a landlord who had even seen the leased property.
 
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Well the deposit amount is all set in this lease as is.. It's 250. I'm looking for some specific information on this if anyone has in knowlege. I am in Maine.
 
Yes, assuming it is not a small apartment building where the landlord also lives, Maine law requires that security deposits be kept separate from the landlord's personal bank account.

§6038. Treatment of security deposit

During the term of a tenancy, a security deposit given to a landlord as part of a residential rental agreement may not be treated as an asset to be commingled with the assets of the landlord.

http://janus.state.me.us/legis/statutes/14/title14ch710-Asec0.html
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Banquo said:
Yes, assuming it is not a small apartment building where the landlord also lives, Maine law requires that security deposits be kept separate from the landlord's personal bank account.
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That's interesting. Then, if I am a landlord, can I legally make money (interest) off of a tenant's security deposit?
 
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