Security deposit disputes are one of the leading landlord tenant problems. Tenants pay money known as security or damage deposits to landlords. Landlords hold the money for property damage that's beyond ordinary wear and tear. Examples of "ordinary wear and tear" are worn-out carpet and appliances, or chipped paint. It is a good idea for tenants and landlords (or property managers) to have joint move-in and move-out "walk through inspections." Note property conditions during the inspections. Keep a copy for your records. When moving out, give the landlord your new address.

DAMAGE DEPOSIT PAYMENTS AND DEDUCTIONS

By law, landlords must send the full deposit plus interest within 21 days from the end of the rental period. Interest amounts vary according to the year(s) a tenant rented the unit. This dropped from 3% to 1% in 2003. Landlords should provide written explanations for costs such as:

• Unpaid rent, or other fees in the lease - lost keys, for example.
• Money to repair damage such as holes in walls, or extra cleaning needed to ready the unit for another tenant.
• Lost rent if you moved out without giving proper written notice.

STEPS TO OBTAIN REFUNDS

• If the landlord refuses to return the deposit, write a letter. Explain why you deserve the deposit back. Keep a copy.
• If this doesn't work, you can sue in Conciliation Court, in the county where you rented the property. You don't need a lawyer. Fill out the complaint form with the landlord's name and address, the cost of damages you dispute, and a short explanation. There is a small filing fee unless your income is low.
• Collect evidence such as your lease, move-in and move-out inspection reports, rent receipts, and letters to the landlord. Make copies for the court. Witnesses can testify upon your behalf and the landlord will need to justify costs. A court judgment follows the hearing.

For more information read Landlords and Tenants: Rights and Responsibilities, from the Minnesota Attorney General's Office. Call 651-296-3353 or 1-800-657-3787 for a copy.

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