I've leased a property for a year. Now it's time to renew the lease for another year and has decided to raise the rent and security deposit to match. I understand these items are normal, but she has also decided that now she wants 2 months security deposit for the water bill (even though it is paid every month with the rent) and also wants an additional pet deposit even though we've had the same pets since the first day we moved it. Is this legit? If so, doesn't she have to give us any notice of all these additional costs? It is only about 1 week before the new lease is supposed to be signed and I'd have to have all this additional money.

She's making some very substantial changes to the terms of your tenancy. She can't require these types of increases without at least 30 days advance written notice and giving you the opportunity to give notice and move out if you don't agree to accept the changes.

Have you tried negotiating any of these items with her? If you want to stay there you can try offering to pay the water bill deposit and additional pet deposit over a period of several months rather than all at once.

Depending on the law in your area the requirement of a water bill deposit may not be legal but I believe the additional pet deposit is legal. So if she's not willing to negotiate then you'll have to look for a new place to live.

Oh, she's willing to negotiate... more like blackmail. If my husband will do work on the property that she wants done, she will waive the pet deposit. Makes no sense to me since the deposit is supposed to cover any 'pet damages'... and yet the work she wants done is building access panels to the plumbing in the bathroom.

I'd like to know for sure about the water deposit. My state is Kansas, and the water bill is paid to her, not the utility.

Is the water bill paid separately or is it included in the monthly rent?

The water bill is a separate payment that varies each month based on usage. It is not part of the monthly rent, but is paid to her.

Kansas law on security deposits is here: Statute | Kansas State Legislature (http://kslegislature.org/li_2012/b2011_12/statute/058_000_0000_chapter/058_025_0000_article/058_025_0050_section/058_025_0050_k/)

The way I read it, the landlord cannot charge you more than 1 month of rent if the property was provided unfurnished, and not more than 1.5 months rent if the property was furnished. In addition, the landlord may charge you a maximum of a half month of rent for a pet deposit.

There is nothing there about the landlord being allowed to charge a separate deposit for a utility bill, so unless your written lease gives her that right I would say that she is not allowed to hold an additional deposit for that. If the water account was in your name then the utility company would be able to require a deposit but since it is in the landlord's name it would be my position that she cannot require another deposit for it.

Thank you so much for your assistance! This helps give me a little extra information for our negotiation meeting tomorrow.

Good luck! Come back and let us know what happens!

As a property manager, I have to defend the landlord on at least part of this. The utility deposit, if not specifically disallowed, is quickly becoming a fact of life for renters across the country. Here's why:
Water (and sewer since it is based on water consumption) costs are on the rise. Atlanta has seen 12% annual increases for the last 5 years. It is not unusual for a family of 4 to be billed $150-200 for moderate usage, 3/4 of that being the sewer portion of the bill. Many cities do not read and/or bill monthly, so bills can add up quickly.
Older rentals often don't have separately metered water. Back in the day, water was cheap and landlords included service at a minimal or no cost. As costs go up and up, there has been a trend in passing the cost of water onto tenants, either based on people in the unit or by submetering. On single family homes, or units that are metered separately, you will establish your own account with the water company, pay them a deposit and be billed regularly (or not) and pay.
Atlanta Department of Watershed Management has recently forced landlords to apply new precautions. Even if you open an account in your name, and have sole access to the water and the bills, the property owner is on the hook if you don't pay. They want to be able to transfer your bill to another tenant in the same building, place a lien on the property, and force the sale of the property to satisfy the bill.
Additional deposit? Damn right we want an additional deposit.

As a property manager, I have to defend the landlord on at least part of this.

Thanks for your contribution, but, reading the thread, I don't see where the landlord needs defending for asking for the additional deposits. The problem was not asking for them, the problem was two-fold; a) not giving sufficient notice for the additional deposits and b) apparently using the additional deposits as a bargaining chip to get work from the tenant.

I think the work she wants done is worth more than having a pet deposit sitting in an escrow account. So you have her over a barrel too. It sounds like you know how to negotiate intelligently.