Security Deposit Landlord refusing to return deposit, charging for legal expenses

[McKann]

Jurisdiction

North Carolina

I'm looking for insight primarily regarding NC's tenant security deposit act: if the landlord violated the act by 1) withholding at least some money for charges that are indisputably not allowed by law and 2) failing to notify us where the deposit was being held, can we reasonably expect to recover the deposit in small claims? From what I can tell, the act states that we should be able, but that seems too easy.

Here's the story. My wife and I moved from a corporate apartment home complex after a one-year lease. We left the house clean and in good repair aside from some drywall damage (a <3" hole and a dent) from moving out. Unfortunately, we failed to document the condition at move-out, and the business billed us almost exactly the amount of our deposit. One of the charges is a late fee for rent that appears to have been charged in error the month after move-out; the rent itself was credited back, the fee was not. The other charges are either excessive or normal wear and tear--like full paint, which they claim was needed because they would not match it after patched the holes...

We did contact the company and have some email correspondence to reference. One thing they claimed which stands out is that the power was shut off prior to their walk-through, which precipitated a charged for cleaning the fridge. They told us the date of the inspection and we have a power bill that shows service was not shut off for some time after.

Another facet to this: we filed a complaint with consumer protection, mostly in the hope it would help future tenants. After the company's lawyer responded, it was suggest we go to small claims. On the same day, we got a new statement from the company with >300 dollars tacked on for "legal fee disputed move out fees". I don't know what to make of that, but I can't imagine it's legal. At this point, any information that would help us weigh the small dollar amount at stake against the considerable hassle of going to court in another county would be very much appreciated.

 

[mightymoose]

If you believe you are owed a refund your solution is in small claims.
The better you can prove your case the more likely you will be awarded a judgment.
Hopefully you have photos to show the condition of the apartment as you left it. It seems you have a reasonable complaint to make but the question is how clearly you can prove your claims.
You will need to ask questions the require the landlord to justify every penny withheld and then show why the landlord is wrong.

 

[army judge]

I'm looking for insight primarily regarding NC's tenant security deposit act: if the landlord violated the act by 1) withholding at least some money for charges that are indisputably not allowed by law and 2) failing to notify us where the deposit was being held, can we reasonably expect to recover the deposit in small claims? From what I can tell, the act states that we should be able, but that seems too easy.

Before you go TOO far down the rabbit hole, what is the amount in question?

Have you reviewed the applicable law?

The North Carolina Tenant Security Deposit Act (the "Act") sets out the rights and responsibilities of residential tenants, landlords, and their agents regarding tenant security deposits. (See NC General Statutes Sections 42-50 through 42-56.) The Act applies to all residential properties except single rooms.

In NC no later than 30 Days after the tenant VACATES the LL is to return the tenant's $ecurity depo$it.

North Carolina law says a landlord may be able to keep all or a portion of a tenant's security deposit for the following reasons:

1 Unpaid rent
2 Unpaid utility bills
3 Damage in excess of normal wear and tear
4 Breach of lease
5 Costs of re-renting the unit
6 Costs to remove and store tenant's possessions after an eviction
7 Court costs
8 Additional unpaid bills the tenant has accumulated during their tenancy that MIGHT cause a lien to be placed against the landlord's property.

The landlord requires the landlord to document an deduction taken.

A landlord in North Carolina normally has 30 days after tenant move-out to return a tenant's security deposit, by mail or in person.

If the landlord is not able to accurately calculate the charges within the 30-day window, the landlord has 60 days to return the deposit or the balance of the deposit to the tenant.

Even if the landlord does have 60 days to return the deposit, the landlord must still provide the tenant with an estimate of charges within 30 days of tenant move-out.

Here's a couple of links about the law in question.

The 1st link is a publication authored by your NC government:

http://www.ncrec.gov/Brochures/Print/tenant.pdf

 

[McKann]

Thank you both so much! I have read the statutes and the handouts (which have pretty clear guidance about what constitutes normal wear and tear.) The amount, including the weird legal charges just added, is around $1,300; this is obviously a matter of principle at this point.

I am starting to wonder, do I need to contest any of the landlord's assertions? It seems that the landlord forfeits all claim to the deposit just by failing to handle it correctly, i.e. placing it in a trust account and giving written notice to the tenant of the institution where it is held. Is it possible I am completely misinterpreting the law? Here's what caught my attention:

From GS 42-50
"Security deposits from the tenant... shall be deposited in a trust account... or the landlord may... furnish a bond[.] The landlord or his agent shall notify the tenant within 30 days after the beginning of the lease term of the name and address of the bank or institution where his deposit is currently located or the name of the insurance company providing the bond."
From GS 42-55
"The willful failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall void the landlord's right to retain any portion of the tenant's security deposit as otherwise permitted[.]"

Chapter 42

 

[mightymoose]

That's the way I interpret it.
However, the landlord might claim that you were provided the information.
Don't count on that ending the matter, but certainly make the argument if you want. Make the landlord produce a cooy of any document alleged to have been provided to you.

 

[army judge]

From GS 42-50
"Security deposits from the tenant... shall be deposited in a trust account... or the landlord may... furnish a bond[.] The landlord or his agent shall notify the tenant within 30 days after the beginning of the lease term of the name and address of the bank or institution where his deposit is currently located or the name of the insurance company providing the bond."
From GS 42-55
"The willful failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall void the landlord's right to retain any portion of the tenant's security deposit as otherwise permitted[.]"

Chapter 42

That's probably your strongest argument.

Take it to small claims, probably cost you about $100 to file and serve him/her.

You could walk away with a $1300 judgment plus your costs which you the must try and collect from the landlord

 

[adjusterjack]

"The willful failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall void the landlord's right to retain any portion of the tenant's security deposit as otherwise permitted[.]"

Fine. But just saying that doesn't get you a nickel unless you are willing to go to court.

 

[McKann]

It occurs to me that winning a suit on the basis that they cannot withhold the deposit doesn't necessarily prevent the landlord from billing us for whatever they like. Which they already did: they billed us for attorney fees they incurred because they decided to hire a lawyer to write to consumer protection... Is there anything I can do to prevent them from doing this, and then sending it to a collector and impacting our credit? This is madness.

 

[mightymoose]

If you end up in court simply present your argument for why you should not have to pay their fees. The judge will decide.
Be organized and well-prepared, don't leave anything in question. Support all your arguments with the language of the lease agreement or state statutes.