Knowing Your Security Deposit
Security deposits aren’t a fun part of finding a new place. As someone who’s signed their fair share of leases, I know this quite well. What’s worse is not getting back what you deserve from your landlord. So, if you find yourself wondering what happened to that chunk of change when you move in or move out of your apartment, house, dwelling, hole, cave, etc., continue reading to see the answers to some of the more commonly asked questions about security deposits.
The following information is taken from The Montana Residential Tenants’ Security Deposits Act (MRTSDA).
What exactly is a Security Deposit? MCA 70–25–101(4)
Value given, in money, or its equivalent, to do one or both things:
1. secure the payment of rent by the tenant under a lease, or
2. secure payment for damage to and cleaning of the leased premises.
How do I know when the money I gave to my landlord is a security deposit? MCA 70–25–101(4)
If a lease requires the tenant or prospective tenant to provide a security deposit to the landlord for all or part of the lease — it is considered a security deposit.
Additionally, any fees or charges for cleaning and damages regardless of what the landlord says they are for — are considered a security deposit.
Even though I think I meet the definition of a security deposit, my landlord claims otherwise. What now? MCA 70–25–103
Any provision or waiver in a lease or that is different to the above definition of a security deposit is invalid. Come see us if you think this might be the case.
I didn’t get all of my security deposit back after I terminated my tenancy with appropriate notice. How do I know I didn’t get ripped off? MCA 70–25–201
If the money taken from the security deposit is not used for the following reasons:
1. Damages caused by the tenant
2. Cleaning expenses with notice
3. Late charges and penalties under lease provisions
4. Utility charges
5. Reasonable charges for labor to address damage and cleaning,
It was outside of the landlord’s authority to do so. Also, if any of the qualified reasons are unreasonable, the landlord exceeded their authority and you might have some redress.
Carpet cleaning is a common deduction that can be problematic.
Alright, I know I damaged my apartment. When should I expect to know what I owe, and when I’ll get back the remainder of my security deposit? MCA 70–25–202(1)
Within 30 days of the termination of a tenant’s lease, they are owed a written list of rent owed, damage costs, and cleaning expense-related deductions from the security deposit with the rest of the security deposit.
My landlord has inspected my apartment and determined it needs no repairs or cleaning. I am current on all rent and utility obligations and I need my security deposit quickly. How quickly does my landlord have to return it to me? MCA 70–25–202(2)
If all of those things are met, the landlord must return the security deposit within 10 days. Otherwise, the landlord can face a wrongful withholding claim.
As a general rule, in order for a security deposit to be withheld for the damage caused by a tenant, both the landlord and the tenant must know and understand the present condition of the premises. Also, Landlords must provide the tenant with a present conditions statement at the beginning of the tenancy and following up via an inspection immediately after the termination of the tenancy.
If this didn’t help and you’re still wondering why you don’t have that money in your pocket, please use the resources below. Otherwise, contact or stop by the Renter Center for further help.
Below are resources used for this article:
The Montana Residential Tenants’ Security Deposits Act
MontPIRG Tenant-Landlord Guide
For Rent: The Complete Montana Landlord and Tenant Guide by Klaus D. Sitte
Principles of Montana Residential Landlord & Tenant Law by Klaus Sitte on YouTube
***Disclaimer: The contents of this publication are not legal advice. There is no guarantee contents are current and up-to-date, or that they apply to your specific situation.
