Security Deposit

[Cecilius]

in louisiana, if a managment company collects rent, makes repairs, etc., and unreasonably withholds the deposit, do you go to small claims against the owner(who is out of state) or the management company?

[Gamli]

Hi Kathleen,

I'm not sure what the rules are in LA.  In California, it's common for a tenant to go after whoever is on the rental contract.  In my business as a manager-for-hire, sometimes the tenant enters into a contract with me as an agent for the owner and sometimes the owner's name is on the contract and I perform limited management services.

If the manager refuses to give your deposit back, they must send a statement with receipts for repair work performed(that they have deducted from your deposit) within a certain number of days(in California they must do this within 21 days or the manager must give the tenant 100% of his/her deposit, regardless of whether or not the manager has receipts).  If you can't get the manager to send you a statement, the manager doesn't return calls, or the manager just plain refuses to give you a reason for not returning your deposit, here are my suggestions for getting your deposit back:

1)  Send a demand letter to the manager via certified US Mail with Return Receipt requested.  Make sure you provide your current mailing address and other contact information.  In your letter, state how much you put down($), the date you moved out of the property, and that you have not yet received your deposit or a statement with receipts explaining why you haven't.

2)  If you get nowhere with the manager, send the same letter via certified US Mail to the owner of the property.  If the owner is not shown in any of your rental paperwork or otherwise known to you, you can go online or physically visit to the county recorder's office in the county where the property is located and find out who the owner is.  It doesn't matter if the owner is a person or a company, send them a letter.  Include a copy of the letter you sent to the manager.  Sometimes an absentee owner doesn't realize that his manager isn't doing right by his/her tenants and will jump in and make things right.

3)  If you get no where with your letters, find out if your local small claims court will let you bring a case against the owner AND the manager.  If not, I recommend going after the owner first.  An absentee owner may plead ignorance of his manager's actions, but the manager is an agent acting on the owner's behalf and the owner retains responsibility.

These are my opinions as a professional property manager.  If you are looking for a legal opinion, I recommend you speak with a lawyer who is specifically qualified in landlord/tenant law.

I hope this helps,

John