Security deposit for a room that my daughter did not move in

[nenettetoo]

My daughter borrowed 1 k from me which she then paid to a renter as a "deposit." There was no written agreement or explanation as to what the money was for. She did not sign a rental or lease agreement prior to her giving the 1 k. Five days before she was scheduled to move in, the renter told her a different rental fee ($875 vs $695/room). She's told him she is unable to rent it at the increased rent amount and have asked for her deposit back. The response from the renter was, "you must be joking, do you know what a deposit is for?"

I understand that a security deposit only applies to specific purposes (repair, maintenance, cleaning, unpaid rent) and needs to be refunded in full within 21 days per CA law. In absence of a written statement regarding the deposit, or what kind of a deposit it was for, we assumed that it was for a partial security deposit, with the rest of the amount due when she moves in. There was no mention of a holding deposit (which by law the renter can keep?).

What is our next step to get our money back?

 

[shrinkmaster]

She will need to take the landlord to smalls claims court

 

[txls]

If your daughter is young, they might be more cooperative if you go with her to talk to them. Ask to see their written contract which gives them the right to keep it. (you know they don't have one.) If not, then you could see if perhaps a demand letter from an attorney(for $100 or $200) might get faster results than small claims.

 

[army judge]

My daughter borrowed 1 k from me which she then paid to a renter as a "deposit." There was no written agreement or explanation as to what the money was for. She did not sign a rental or lease agreement prior to her giving the 1 k. Five days before she was scheduled to move in, the renter told her a different rental fee ($875 vs $695/room). She's told him she is unable to rent it at the increased rent amount and have asked for her deposit back. The response from the renter was, "you must be joking, do you know what a deposit is for?"

I understand that a security deposit only applies to specific purposes (repair, maintenance, cleaning, unpaid rent) and needs to be refunded in full within 21 days per CA law. In absence of a written statement regarding the deposit, or what kind of a deposit it was for, we assumed that it was for a partial security deposit, with the rest of the amount due when she moves in. There was no mention of a holding deposit (which by law the renter can keep?).

What is our next step to get our money back?

This is why smart people don't rent rooms from renters.
You should always rent from the owner of the property.
Subletting is also very risky.
Its best to be risk adverse.

I doubt that she'll see one dollar of that $1,000, even if she prevailed in a small claims lawsuit.
Collecting on a judgment is 100,000 times more difficult than obtaining a judgment.
Th loss of the $1,000 will serve as a very valuable lesson.
One never leave a deposit, unless its $1.00 or less.
If the other party won't take $1.00 as a deposit, find another deal.
Never sublet, rent only in your name, and never depend on roommate rentals.