THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, March 30, 1996 TAG: 9603280256
SECTION: REAL ESTATE WEEKLY PAGE: 18 EDITION: FINAL
SOURCE: BY GREG McCRACKEN, SPECIAL TO REAL ESTATE WEEKLY
LENGTH: Medium: 61 lines
All standard leases contain a provision for a security deposit. Typically, the security deposit is an amount equal to one month's rent. However, it is not uncommon to see leases that require two months' rent.
The primary purpose of a security deposit is to ensure that if the tenant damages the property, the landlord has a pool of money from which to repair it. The security deposit may not be used by the tenant in lieu of paying the last month's rent unless expressly permitted in the lease.
Once the lease is signed, it is important for each party to conduct a walk-through inspection of the premises to note the deficiencies that exist at the beginning of the lease.
This is important for both parties as it establishes a baseline condition of the premises at the beginning of the lease and will help the parties determine what, if any, damage was done to the property during the tenancy.
During the walk-through, all deficiencies should be noted. Upon completion the parties should exchange their respective lists and, if necessary, discuss any deficiencies that need to be corrected.
At the end of the lease term, the tenant should follow the rule of thumb of leaving the property in at least the same, if not better, condition that he found it.
This includes cleaning the property in accordance with any applicable lease provision and replacing or correcting any changes made to the premises. The parties should conduct an exit walk-through inspection to discuss the condition of the premises and to determine if any damage was done during the tenancy which needs to be repaired.
This serves two purposes. First, it gives the landlord the opportunity to point out any deficiencies and the parties to discuss them so that the tenant may make the repairs themselves. Secondly, if the property meets the approval of both parties, it gives the landlord the opportunity to return the tenant's security deposit at an earlier date than otherwise might be possible.
If no exit walk-through is conducted and the landlord finds damage, he must notify the tenant within 30 days, in writing, of the deficiencies. Failing to do so may forfeit the landlord's right to use the security deposit to correct the deficiencies.
Once the tenant has been provided with the itemized list of damages and invoices for the actual cost of the repair, the landlord may subtract these sums from the security deposit and return the security deposit to the tenant. All this must be done within 30 days.
One final note: Landlords who own more than 10 rental properties must place the security deposit in an interest-bearing escrow account and pay the accumulated interest to any tenant who has occupied the premises for more that 13 months. MEMO: Greg McCracken is a Virginia Beach lawyer. Send questions to him at 4705
Columbus St., Virginia Beach, Va. 23462-6749. The fax number is
552-6016; e-mail, hpmv(AT)livnet.com
by CNB