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SECURITY DEPOSITS
INTEREST ON SECURITY DEPOSITS
The
San Francisco Administrative Code Chapter 49 governs
the law regarding payment of interest on security
deposits. The following are interest rates since the
law first passed: After
Aug. 4, 2002 up to Feb. 28, 2003: 3.4%
RETURNING DEPOSITS
As of January 1, 1994, landlords have 21 days to return security deposits. If all or part of your deposit is being withheld, your landlord must send to you a written, itemized statement, within 21 days, listing the reasons why the amount is being withheld from your deposit. A landlord can deduct for damages (torn drapes he provided, cigarette burns in the rugs, etc.) but not for normal wear and tear (the rug is 500 years old and worn to the backing). One example we always use to distinguish is: The drapes are there when you move in and you live there ten years. The sun beats down on the drapes every day. By the time you leave, the drapes are faded, but it's not your responsibility, it's the sun's. On the other hand, if your cat uses the drapes as a scratching post for ten years, then you are responsible. STUBBORN LANDLORD
If your deposit is not returned to you within 21 days, if you do not agree with the amount that has been withheld, or if your landlord has not paid you interest: Send a letter to your landlord requesting the money and refer to the security deposit law California Civil Code 1950.5. (San Francisco Administrative Code Chapter 49 for non-payment of interest). Keep a copy of all correspondence. If your landlord does not respond within a reasonable time, you can sue in Small Claims Court (see info below). Small Claims Court is informal and no lawyers are allowed. You and your landlord will both have an opportunity to tell your story. Therefore, prepare all written documentation, inspection reports, rental agreements, receipts for deposits paid, and photos which will help prove your case.You can sue your landlord for statutory damges of twice the amount of deposit for bad-faith retention of the deposit: CA Civil Code 1950.5 (l). The maximum you can sue for in Small Claims Court is $7,500. For more information call Small Claims Court hotline at (415) 291-2124. MOVE-IN
Get an itemized receipt for your deposit which identifies each charge. When you move in, take careful inventory of the condition of the place. Record any damage and check all equipment to ensure that it works properly. If possible, take photos of existing damage to ensure that you will not be blamed for it. Have the landlord or manager sign and date your inventory list and keep a copy. INCREASING DEPOSITS DURING TENANCY
Sometimes a landlord will try to increase the amount of money you have on deposit during your tenancy. State law does not address this issue. Check your lease. If you have a fixed-term lease, the landlord may not raise the security deposit unless the lease allows for it. If the security deposit already adds up to two months' rent, then the security deposit may not be increased. To raise a deposit the landlord must properly serve you with a 30-day written notice of the increase. SALE OF PREMISES
Landlords who sell their buildings are required to either transfer the security deposits to the new owner or return the deposits to their tenants. If deposit is transferred to the new owner, the old landlord must give the tenant a document stating the amount of the transfer and the new owner's full name and address. MOVING OUT
Whether
you are on a month-to-month tenancy or at the end of a
fixed lease, the law requires that you give a
thirty-day written notice before you move out. If you
have not paid last month's rent ahead of time, you
should pay it with your notice. If you move out
without giving notice, your landlord may be entitled
to deduct "unpaid rent" from your deposit. If you move
out without giving notice and the apartment is
re-rented right away, the landlord must return your
rent from the time that a new tenant occupies the
apartment. A state law (SB 2330), which went into
effect January 1, 2003, mandates that a landlord
notify a tenant of the option of having an initial
inspection two weeks before terminating a premises in
order to identify problems (and possible deductions
from the security deposit) and be given a chance to
rectify them and avoid the deduction. BREAKING A LEASE
If you are moving out before the end of your rental agreement, notify your landlord in writing as soon as possible of when you will be leaving. You are responsible for paying rent on the apartment until the apartment is re-rented or until the lease expires, whichever comes first. The law requires landlords to make all reasonable efforts to rent the apartment to another tenant at the best possible price (mitigate their damages). We recommend that you also help to mitigate the landlord's damages by trying to find another tenant: Put a notice on Craigslist and signs in cafes and other places. Once the landlord re-rents the apartment your obligation to the landlord ends, although he can try to charge you the difference in the rent you were paying and the new tenant is paying, if it is lower. LAST MONTH'S RENT
If you were required to pay for the last month's rent before moving in, check your lease to determine what you have actually paid for. If the lease says "security for last month's rent," then you have not actually paid for the last month's rent, but just provided security for it, and must pay your rent on time as usual. If the rent has been raised, you must pay the difference between the final rent and the security for last month's rent. If the rental agreement simply says "last month's rent," then you have paid for last month's rent and do not have to again. Further, you are not responsible for the differential amount caused by a rent increase. DEPOSIT FOR LAST MONTH'S
RENT
If part of your deposit was not specifically for last month's rent, you are required to pay rent for the last thirty days you live in the apartment. Write a letter to your landlord a month or two before you leave telling him/her that you will not be making your usual rent payment, and that your deposit should be applied towards rent. Offer to have the landlord inspect the apartment for damages before you move out. If your landlord does not like this arrangement s/he can give you a three day notice to pay rent or move out. If you do neither, your landlord must go to court to evict you for non-payment of rent. It would probably take several weeks to bring this case to trial, and therefore it is very unlikely that your landlord will follow up with this. However, if your landlord persists by suing you for eviction, take steps to avoid having a judgment entered against you. SMALL CLAIMS
Small
Claims Court is relatively simple. No attorneys are
allowed. The best comparison is to TV court programs
such as Judge Judy: You present your case, the
landlord presents his or hers. The judge decides.
Small Claims can be used for a whole host of tenant
problems, including decrease in services, illegal rent
increases, etc. To file, go to the courthouse at 400
McAllister St./Polk during regular business hours. The
cost of filing for Small Claims has jumped up. It's
now based on how much you're suing for. If your suit
is for up to $1,500, the cost is $30.00. From
$1,500-$5,000, it's $50.00. From $5,000-$7,500: $75.
The court still offers fee waivers if you are
low-income. So you should ask for them. For help with
filing in Small Claims, check out the Access Center:
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