OfflineSecurity Deposit Trivia
Perhaps not so trivial, a recent industry survey determined that 1 in 4 renters do not receive their security deposit back after moving out of a rental unit. Worse, nearly 36 percent said that they never received a reason for why their deposit was withheld. Though this is against the law in most states, it appears that many landlords are getting away with it. In some cases the units are probably trashed, but it should be procedure to send a written reason describing the damage to justify keeping the deposit.
Wells Fargo Settles with Fannie Mae
Earlier in 2013, Wells Fargo entered into a settlement for $869 million for bad mortgages. Now they’ve settled again with Fannie Mae for $591 million for the bank’s poor lending practices that cost Fannie Mae big dollars.
Fewer Borrowers Underwater on Home Loans
Realtytrac reports that the number of underwater homeowners is decreasing. Currently 9.3 million, or 19% of homes with mortgages are considered as “deeply underwater.” Last January that number was 10.9 million properties, or 26% of mortgages.
I can tell you from personal experience that some landlords are just greedy B****rds. I had one that not only tried to keep my ENTIRE security deposit, she verbally assaulted me over the phone, saying that the place was a complete TRASH-HOLE, I had left it completely un-rent-able, she was going to have to replace the carpet, and "How could anyone live in such SQUALOR?!" (Her exact words.) OH, and it was going to cost an ADDITIONAL $1200 JUST to make the place live-able again. (YES, she expected me to cough that up.) She tried to make it out like I had torn doors of the hinges, smeared sh*t on the walls, and punched out the windows.
I had lived there for 6 years, YES, Of COURSE the carpet was going to need to be replaced, it's called "Wear and tear" and is part of LIFE. But beyond that, the apartment was FINE, I'd even VACUUMED it before I left.
Anyway- short version? I took her to small claims court, and she lost. HARD.
SO- yeah, sometimes that security deposit has to be fought for, and not because the tenant left the place a shambles.
Recently, I bought a rental property from another investor; after he sent me the tenant's lease, which stated that she had given him $900 deposit ( $700 plus $200 for pet), I asked him to forward it to me; after a few weeks I received a check from him for 2/3 of the deposit, so I immediately questioned him about it; his response was that he took money out of it because he had to do some repairs to the property! Needless to say, yes, there are many unscrupulous landlords out there.
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
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