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Twins Grandma · Nov 10, 2007, 08:42 PM

When we renewed our lease our landlord increased our rent by $100.00. He then told us he was increasing our security by $300.00 ($100.00 for first, $100.00 for last and $100.00 for security). That does not sound right to us. When you get an increase in rent is it typical that the landlord also increase lst, last and secuirity IN the security deposit?
Thanks for your reply

I LIVE IN CALIFORNIA.

ChihuahuaMomma · Nov 10, 2007, 08:44 PM

It's not typical to have to PAY any deposits on a lease renewal...

froggy7 · Nov 10, 2007, 10:28 PM

I've always wondered this myself. It's not common, no. But on the other hand, there was a post a while ago from someone who had rented an apartment many years ago, and was wondering whether the landlord had any right to sue him for the difference between the "last month's rent" in the security deposit and the current last month's rent. In other words, if the rent is $400/month when you first sign the lease, and $1000/month when you finally stop renting, does the landlord have to apply the 400 "last month's rent" to the last month? In which case, he's out 600. So I can kind of see increasing the security deposit when the rent goes up. But it shouldn't include the first month's rent, since that's been spent already.

snowrider · Nov 10, 2007, 11:19 PM

What state do you live in?

ChihuahuaMomma · Nov 11, 2007, 12:45 AM

Originally Posted by froggy7

I've always wondered this myself. It's not common, no. But on the other hand, there was a post a while ago from someone who had rented an apartment many years ago, and was wondering whether the landlord had any right to sue him for the difference between the "last month's rent" in the security deposit and the current last month's rent. In other words, if the rent is $400/month when you first sign the lease, and $1000/month when you finally stop renting, does the landlord have to apply the 400 "last month's rent" to the last month? In which case, he's out 600. So I can kind of see increasing the security deposit when the rent goes up. But it shouldn't include the first month's rent, since that's been spent already.

Some people are so money hungry...

excon · Nov 11, 2007, 06:13 AM

Hello Grandma:

I think it's legal to do so. I also think it makes NO SENSE to do so, because he's going to have to give it back. A landlord requires a deposit to protect himself against damage to his property. Does he think that his property will get damaged MORE since he renewed the lease??

Your state very well might require him to keep your deposit in a separate interest bearing account. If that's so (and you can look at the top of this forum to find out), then give him his deposit and demand to see the deposit slip from the separate account he's supposed to keep. I'll bet he doesn't have one of those.

excon

LisaB4657 · Nov 11, 2007, 07:00 AM

Some state laws allow a landlord to require an increase in the security deposit when the rent is increased. Let us know what state you're in, or you can look up the laws in your state by going to the sticky post at the top of the Real Estate Law forum.

Fr_Chuck · Nov 11, 2007, 07:04 AM

The one issue is that first month rent is already paid, so that is illegal to ask for pay increase for the first month you lived there. They can ask for the additional for the last month and they can ask for new terms, since this is in reality a new lease.

But no they can not legally ask for new "first" month rent, since that was used for the first month you lived there.

Twins Grandma · Nov 11, 2007, 07:41 AM

Originally Posted by snowrider

What state do you live in?

I live in California.
(hope I am doing this answer thing in the right way)

Twins Grandma · Nov 11, 2007, 07:41 AM

Originally Posted by LisaB4657

Some state laws allow a landlord to require an increase in the security deposit when the rent is increased. Let us know what state you're in, or you can look up the laws in your state by going to the sticky post at the top of the Real Estate Law forum.

I live in California. Thanks so much.

Twins Grandma · Nov 11, 2007, 07:45 AM

Originally Posted by excon

Hello Grandma:

I think it's legal to do so. I also think it makes NO SENSE to do so, because he's gonna have to give it back. A landlord requires a deposit to protect himself against damage to his property. Does he think that his property will get damaged MORE since he renewed the lease??????

Your state very well might require him to keep your deposit in a separate interest bearing account. If that's so (and you can look at the top of this forum to find out), then give him his deposit and demand to see the deposit slip from the separate account he's supposed to keep. I'll bet he doesn't have one of those.

excon

Thanks for your reply. How do I find out if he is required to have a separate interest bearing account. I live in California. Again, thanks so much.

excon · Nov 11, 2007, 08:01 AM

Hello again Grandma:

You can read the law, which you can find at the top of THIS forum. I think both Lisa and I mentioned it.

excon

LisaB4657 · Nov 11, 2007, 08:03 AM

The state of CA has a fantastic website that gives tons of info for landlords and tenants. You can find it at Landlord/Tenant Book Index - California Department of Consumer Affairs.

Here is the info I found there about increases in security deposits:

"Whether the landlord can increase the amount of the security deposit after you move in depends on what the lease or rental agreement says, and how much of a security deposit you have paid already.

If you have a lease, the security deposit cannot be increased unless increases are permitted by the terms of the lease.

In a periodic rental agreement (for example, a month-to-month agreement), the landlord can increase the security deposit unless this is prohibited by the agreement. The landlord must give you proper notice before increasing the security deposit. (For example, 30 days' advance written notice normally is required in a month-to-month rental agreement.)

However, if the amount that you have already paid as a security deposit equals two times the current monthly rent (for an unfurnished unit) or three times the current monthly rent (for a furnished unit), then your landlord can't increase the security deposit, no matter what the rental agreement says. (See the discussion of the limits on security deposits.) Local rent control ordinances may also limit increases in security deposits.

The landlord must give you proper advance written notice of any increase in the security deposit. (See " Proper Service of Notices.")"

Here is a portion of the info about the basic rules of security deposits:

"At the beginning of the tenancy, the landlord most likely will require you to pay a security deposit. The landlord can use the security deposit, for example, if you move out owing rent, damage the rental unit beyond normal wear and tear, or leave the rental less clean than when you moved in.

Under California law, a lease or rental agreement cannot say that a security deposit is "nonrefundable." This means that when the tenancy ends, the landlord must return to you any payment that is a security deposit, unless the landlord properly uses the deposit for a lawful purpose, as described below and under Refunds of Security Deposits.

Almost all landlords charge tenants a security deposit. The security deposit may be called "last month's rent," "security deposit," "pet deposit," "key fee," or "cleaning fee." The security deposit may be a combination, for example, of the last month's rent plus a specific amount for security. No matter what these payments or fees are called, the law considers them all, as well as any other deposit or charge, to be part of the security deposit."

So based on this info, the landlord can increase your security deposit but the total amount (including the last months rent) cannot be greater than an amount equal to two months rent.