Forfeit security deposit clause?

[kyledyr]

I have a question concerning how a security deposit can be used. I signed a month-to-month lease which states that if I move out before a year that I forfeit the entire deposit (which amounted to 950) and I would have to pay for any cleaning or repairs . My wife and I had full intention of staying the full year but several things came up. Namely she became pregnant and I asked the landlord to put a hand rail in for a staircase that had 15 steps. He kept ignoring my calls and emails and after a month we decided to purchase a home. I gave him a month notice and even helped get someone moved in. In fact they moved in the day after we moved out. We paid all of our rent so he wasn't out any money due to us leaving. He is now claiming damages and wanting us to pay more without using any of the deposit money for those issues.

Our State law states the following:

The landlord may withhold from the security deposit only such amounts as are reasonably necessary for the following reasons:

(1) To remedy a tenant's default in the payment of rent due to the landlord, pursuant to the rental agreement;

(2) To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted; or

(3) To compensate the landlord for actual damages sustained as a result of the tenant's failure to give adequate notice to terminate the tenancy pursuant to law or the rental agreement; provided that the landlord makes reasonable efforts to mitigate damages.

In Summation, the entire deposit is being used as a fine and the landlord broke housing code and created an unsafe environment for my family. I don't feel I should be penalized for these reasons.

[archy]

Congratulations for taking the time and effort to learn about the law, and your rights.

The security deposit is there to cover landlord's losses. It is not there to provide a windfall for the landlord. Landlord can only keep an amount to cover his actual out of pocket losses.

In your case, the landlord has not lost anything, and therefore your entire deposit must be returned.

Any contract provision purported to be a "penalty," or "fine," or "forfeiture" is unenforceable. Sue in small claims if landlord is uncooperative. Some states make landlord liable for treble damages for wrongful withholding of security deposit.

Note: Just to add, the housing code thing and unsafe environment thing are pretty much irrelevant. What's relevant is that the landlord has no losses, and cannot withhold any deposit unless he can prove a quantifiable monetary loss.

[kendrix]

You should have done a done a walk though with him and got him to sign off that everything was as he rented it to you. Plus if you had to stay a year that is not a month to month lease What does paper say??Also how did you complain about the railing/safety issues- did you send him a certified letter of complaint? You could take him to small claims court but it might not be worth it since you might not have much proof.

I might not want to push your luck cause if you really have a yearly lease- he could try to hold you responsible for the whole year. You would need the person renting now to testify- then are they gonna loose their housing? They could verify the railing and the quick time it took to rent- but as far as damages he could maybe lie and say he did fixed it the day you moved? But if they are willing to say they moved as you will literally moving out- maybe that is believable I don't know.

I have left a place absolutely spotless and took pics as I was leaving and still lost my deposit- bad landlord suck!

[camdin90]

Check on your states law for safety violations concerning the stairway and lack of handrail, and charge him/her with safety violations. I think all apartments buildings that have stairs must have handrails installed or they violate safety codes. But yes you have done everything appropriately to get your deposit returned.