Tenant has damaged my property (floor, walls, landscaping, etc) and infested the house with roaches. I deducted approx. $2,000.00 from his deposit of 3,400.00. The lease expired on Feb 28, 2015 but he moved earlier on Feb 21. He left some items behind and did not return the garage remote and one set of keys. We had the final inspection on Feb 22. I sent the deposit balance and the itemized deductions on March 16, 2015 by registered mail. He is disagreeing and threatens to sue me and put a lien on my house. He said that some deductions (at least $1000.00) are not legal in California such as the roaches extermination.
In California, a landlord must, in 21 days or less from the move out date, either return the entire security deposit or a partial (or no) security deposit with an itemized statement of deductions. A landlord may only deduct for the following:
(1) Unpaid Rent that is Owed and Due;
(2) Cleaning the unit, but only as necessary to return to the state it was in before tenant moved in;
(3) Repair damages, only damages beyond normal wear and tear, caused by tenants or tenants' guests; and,
(4) Where the lease allows for it, repair/replace any furnishings in the unit.
The landlord may only deduct reasonably necessary expenses to achieve the above reasons. All charges that conform with the above must be substantiated with receipts. Where the landlord has performed his/her own work, the landlord must provide receipts for any materials purchased to do the work above. Keep in mind, if all the work performed was less than $126, the landlord does not need to provide any receipts or invoices for the work, but still needs to provide an itemized statement with the security deposit within 21 days or less of moving out,
If a landlord fails to return the money within 21 days from the move, the law states that the landlord forfeits his/her right to the entire security deposit. The tenant then either has the right to accept the late security deposit and waive the delay, or request the entire amount back.
As it relates to pest extermination, if this was the roaches were the result of the acts of the tenant or tenant's guest, then the landlord has the right to use the leaving tenant's security deposit to perform the pest extermination. In addition, pest extermination is also considered repairs to the property for damages beyond normal wear and tear. HOWEVER, if there are any conditions (such as pests) that existed before the tenancy was created between the landlord and the moving tenant, the landlord may not deduct pest extermination costs against the leaving tenant's security deposit.
Where a tenant disagrees, a landlord should review the applicable reasons for deducting the security deposit, and then consider whether those costs are reasonably necessary. If the landlord continues to believe the costs deducted are reasonably necessary, then the parties should try to negotiate the issue or seek a neutral third party to help mediate the situation. If neither party is able to come to an agreement or compromise, then a lawsuit may occur. However, a landlord's defense that the costs were allowed by law, were reasonably necessary, and supported by receipts and invoices is a strong defense.
If the tenant decides to sue, I would seek the assistance of a landlord-sided landlord-tenant attorney in Pasadena to assist you.
The relevant statutory section is Section 1950.5 of the California Civil Code. As prior counsel stated, this section requires you to deliver the security deposit, less any deductions, to the tenant within 21 days of the tenant moving out. This means that you had to mail the deposit by March 14. So you are technically late, and the penalty is that you could be forced to return the deposit.
This doesn't mean, however, that you aren't entitled to payment for the damage caused by the tenant. You are allowed to deduct cleaning expenses "necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy". You can only deduct for damage that is more than ordinary wear and tear. If you can show that the roaches were attracted to the unit because of the tenant's actions and cleanliness, then you should be able to deduct for roach extermination. If the tenant wanted to file suit for the security deposit, you would be allowed to file a counter-claim for the costs necessary to repair the unit and return it to the state of cleanliness in which the tenant received the unit. So if you can justify those costs and have receipts, the Tenant could still be liable to you for the costs you incurred repairing the unit.
You also state that you had an inspection. You should have raised the deductions at the inspection so the tenant had a chance to correct any deficiencies in the condition and repair of the unit. The roaches and other charges therefore should not have been a surprise to him.
If the tenant does file a suit to get his money back, it would most likely be in small claims court. You can't have an attorney represent you but you could consult one to help you prepare for it. You could also see if an attorney could reach out to him and convince him to let this go since you really only mailed it 1 day late (the 21st day after moving out fell on a Saturday, and there isn't mail Sunday). Good luck!
You made some mistakes by mailing the deposit back in an untimely fashion and not giving this information to the tenant in the inspection (it is unclear if you noted these items so the tenant could fix them first). My suggestion would be to reach out to the tenant and reach a compromise. Not sending the security deposit back in the time required by law is an expensive lesson but you are still able to try a small claims case against the tenant for the damages.
