Your Security Deposit

So you applied for an apartment, and you were approved! Now it's time to read your lease agreement, thoroughly, before signing on that shiny new apartment. But if you're like most of the busy bees buzzing about this city, you didn't have time to read it thoroughly. A glance counts, right? I mean, you touched on the important topics, the rest is just legal jibber-jabber. The lease is important, not only does it serve as a guide for what you can and cannot do, it's the difference between a friendly farewell and possible legal action, or worse, eviction. Let's take a moment to zero in on your lease agreement and discuss it. We'll start with those hot topics you grazed. First, your security deposit. The lease agreement reads: SECURITY DEPOSIT: You acknowledge owing us a Security Deposit to be held by us as security for the faithful performance by you of your obligations under this Lease. We will provide you with a separate receipt acknowledging the amount of Security Deposit paid by you. The Security Deposit, or any portion thereof, may be withheld for unpaid rent, damage due to breach of this Lease or for damage by you or the your family, agents, employees, guests or invitees in excess of ordinary wear and tear to the Premises, common areas, major appliances and furnishings owned by us. It is understood and agreed, however, that even though you paid a Security Deposit, rent must be paid when due, in accordance with the terms of this Lease. You have the right to be present when we inspect the Premises in order to determine if any damage was done to the Premises, if you notify us by certified mail of your intention to move, the date of moving, and your new address. Your notice must be mailed to us at least fifteen (15) days prior to the date of moving. Upon receipt of your notice, we will notify you by certified mail of the time and date when the Premises will be inspected. The date of inspection will occur within five (5) days before or five (5) days after the date of moving as stated in your notice. If we sell or transfer the Premises, we have the right to transfer your Security Deposit to the purchaser, or other transferee, and we will no longer be liable for the return of your Security Deposit. Thereafter, you must look to the purchaser or other transferee for the return of your Security Deposit. This will apply every time your Security Deposit is transferred. Your Security Deposit may not be mortgaged, assigned or encumbered by you without our prior written consent. You have a right to receive, by first class mail, delivered to your last known address, a written list of the charges against your Security Deposit claimed by us and the actual costs, within forty-five (45) days after the termination of your tenancy. We are further obligated to return any unused portion of your Security Deposit, by first class mail, addressed to your last known address within forty-five (45) days after the termination of your tenancy. Our failure to comply with Maryland's Security Deposit Law may result in our being liable to you for a penalty of up to three (3) times the Security Deposit withheld, plus reasonable attorney's fees. But what does this mean? You signed your lease and paid the deposit, which you expect to get back at the end of your lease. Surely there's nothing that would prevent this from returning to your bank account upon move-out, so you shouldn't have to worry about the logistics of it, right? Unfortunately, that's not always the case. According to the above statement, if you fail to pay rent, damage your apartment (beyond normal wear and tear), or damage any of the common areas, such as your hallway, some, if not all, of your security deposit will be used to pay for the damages or missing rent. What counts as "damage"? See section 17 of your lease. When you move out, it also states that you can be present during time of inspection, to see if any damage was done, but it is not required that you're present. If there are damages, we will send you a list of detailed charges to your new address within 45 days after you move out. We will return the remaining portion, or all of, your security deposit within 45 days as well. If we fail to do our part, we are liable to pay up to three times the amount of your security deposit, plus any reasonable attorney fees. If you transfer your apartment to someone else, the security deposit goes with it. So when you move out, you will not get your security deposit back (we recommend you discuss this with the person taking over your lease). Whenever the transferee moves out of the apartment, they will receive the security deposit back, or will be stuck with any damage charges for the apartment (another good reason to discuss this with the transferee). So there you have it, your security deposit in a nut shell. You should always read a document very carefully before signing it, but here at 520 Park we want to be completely transparent and leave no surprises. We're not here to scam you! If you ever have questions over your lease, please stop in the office or set up an appointment to discuss things. We want you to feel comfortable in your new home and trust that we have your best interests at heart.