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Step 5: File any court papers. Under some state laws, you must ask a local court for permission to withhold rent, provide compelling reasons why your rental is not livable, and follow specific procedures. You can get the necessary information and forms from the court or housing department that is named in your rent withholding statute.
Step 6: Deposit your rent in escrow. In some states, you may have to deposit your rent with the specified local court or housing agency or in a separate bank account. Even if your statute does not require this, we recommend that you deposit the withheld rent into an escrow account held by a neutral third party. This will dispel any suggestion that you are withholding rent simply in order to avoid paying it.
If a court or housing department is not set up to handle withheld rent, try asking a mediation service if it will establish an account for this purpose. Or ask your attorney to deposit the withheld rent in the attorney's “trust account.” You can also set up a separate bank account of your own and use it only for withheld rent.