The landlord-tenant closing statement to reconcile the security deposit is a landlord’s record that is used to document deposits, credits, and deductions from credits or the security deposit for delivery to the tenant and for the benefit of both parties as it tracks the money held by the tenant. landlord and the amount owed to the landlord.
The landlord requires the tenant to pay the security deposit to cover the expenses that may be incurred for any damage repairs to the rented premises, excessive wear and tear after the tenant moves out of the residential property. Normal wear and tear is the result of daily use of the facilities, but excessive damage can be the result of careless use. A security deposit is different than a rental. It is a certain amount withheld by the landlord, but it actually belongs to the tenant and is allocated for any damage to the leased property during the tenant’s use of the property and sometimes for unpaid rent, if applicable. Without permission, a security deposit cannot legally be used to cover an overdue rent.
The law prescribes the limit on the amount of a security deposit that the landlord must collect from the tenant. The law varies from state to state. There are states that also regulate that security deposits for residential properties must be kept and when interest income on security deposits must be paid to the tenant and also state laws prescribe the timeline within which the deposit must be returned to the tenant after he leaves the tenant. local.
If the tenant does not pay the rent when it is due, the landlord must send or deliver a written notice to the tenant demanding payment of the rent owed and the landlord’s intention to terminate the rental agreement if it is not resolved within 5 days. from the receipt of the notification. If the tenant liquidates everything owed plus the late fee agreed in the rental agreement, the rental agreement will not be terminated. But if the tenant does not comply within the given 5 day grace period, the landlord can terminate the rental agreement by filing a special withholding action. After a special lien action has been filed and a judgment has been entered in favor of the landlord and the tenant has settled all the rent owed, the late payment penalty as agreed in the rental agreement, attorney’s fees and the cost of the lawsuit, and the reinstatement of the rental agreement is solely at the discretion of the owner.
The landlord can recover all reasonable damages resulting from the tenant’s breach of the rental agreement of the security deposit and return what is left after making all necessary deductions.