The Security Deposit Fiasco: A Lesson in Property Management Mistakes

Today, we have a cautionary tale highlighting the importance of properly handling security deposits and pre-move-out inspections. Join us as we delve into the missteps of a property management company and learn valuable lessons on how not to handle these crucial aspects.

Please know that this is not legal advice. It is always recommended to consult a lawyer to ensure you comply with state and local laws and regulations.

A young couple eagerly prepared to move out of their first apartment. Recognizing the significance of their security deposit, they diligently scheduled a pre-move-out inspection well in advance. Excitement mixed with nervousness as they eagerly anticipated the inspection day. However, to their disappointment, nobody showed up at the agreed-upon time. Puzzled, they reached out to the management, only to receive an apologetic response, “Let’s reschedule.” After waiting another day, the couple faced the same disappointment—no one arrived for the inspection. Frustrated, they made another call to the management, who nonchalantly replied, “We’ll text maintenance.” Time ticked by, and still, no one came. Finally, after another call, a maintenance worker showed up, completed a cursory walk-around, jotted a few notes on a clipboard, and left without leaving any notice behind. Perplexed, the young couple assumed everything was fine.

Fast-forward a week, the couple moved out on their scheduled date, signing off with the management, yet receiving no communication about the inspection. It wasn’t until the management informed them of the 21-day deadline to return the security deposit that they learned of any deductions. A whopping $250 was deducted for cleaning expenses, leaving the couple wondering—was this justified?

Let’s shed light on where things went wrong:
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In the state of California, tenants have the right to request a pre-move-out inspection. It is the tenants’ responsibility to initiate this process and coordinate a date and time with the property owner, which the couple did.

Unfortunately, in this story, the young couple had to face the property management company’s negligence in keeping the scheduled inspection.

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Let me note that if the tenant does not request a pre-move-out inspection, the property owner is not permitted to perform one. Typically, this inspection occurs within the last 14 days of the tenancy, allowing sufficient time for tenants to address any necessary repairs or cleaning that might affect their security deposit. While the

presence of the tenant during the inspection is not mandatory, they have the right to be present if they wish.

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The tenant should proactively schedule the inspection with the property owner, ensuring ample time for tenants to rectify any issues. During the inspection, the property owner must provide an itemized statement listing repairs and cleaning tasks that tenants should complete to avoid deductions. This statement, accompanied by a copy of the California security deposit statute, should be presented to the tenant during the inspection or left inside the unit.

In this situation, none of this happened. The couple was left in the dark regarding the outcome of the inspection.

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Once the tenant has moved out, the property owner can conduct a final inspection. Any deductions from the security deposit can be made for repairs or necessary corrections that were identified but not addressed or for damage that occurred after the initial inspection, such as during move-out. Also, possible damage might not have been identified during the first inspection due to the presence of the tenant’s possessions, such as damage hidden by the furniture.

In our cautionary tale, the property management company failed to adhere to the proper procedures for security deposit deductions, and inspection protocol and did not take any pictures for their evidence. Remember, as management companies and property owners, it is our responsibility to ensure that pre-move-out inspections are conducted correctly, benefiting both tenants and us. By following the guidelines set forth by the California security deposit statutes, we can avoid misunderstandings, unnecessary conflicts, and potential legal issues.

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