CRLS Lease Administration & Security Deposits Flashcards

What is the maximum security deposit most US states allow for an unfurnished residential unit?

Answer: One to two months' rent, depending on state law

Most states cap security deposits at one to two months' rent for unfurnished units, though exact limits vary by jurisdiction.

Within how many days must a landlord typically return a security deposit after a tenant vacates?

Answer: 14 to 30 days, depending on state law

Most states require landlords to return security deposits within 14 to 30 days of move-out, along with an itemized deduction statement if applicable.

Which of the following is a legally permissible deduction from a tenant's security deposit?

Answer: Repairing damage beyond normal wear and tear

Landlords may deduct for damage beyond normal wear and tear, such as large holes in walls or stained carpets caused by tenant negligence.

What is 'normal wear and tear' in the context of a residential lease?

Answer: Gradual deterioration from ordinary use, such as minor scuffs and faded paint

Normal wear and tear refers to expected, minor deterioration from everyday living that a landlord cannot charge to the tenant.

If a landlord wrongfully withholds a security deposit in violation of state law, what remedy may a tenant seek?

Answer: Up to two to three times the deposit amount as a penalty, plus attorney fees

Many states impose statutory penalties of two to three times the wrongfully withheld amount to deter bad-faith withholding by landlords.

Where must security deposits be held in many US states?

Answer: In a separate interest-bearing escrow account

Many states require security deposits to be held in a dedicated escrow account, separate from operating funds, to protect tenants' money.