Issue with deposit return.

Hi there. This is kind of a long explanation, I appologize.

My best friend recently bought a condo and asked me to move in with her, and I agreed. I signed a lease, however was told by her not to tell anyone I was renting. Apparently, it was illegal for her to have tenants. 6 months went on, I paid rent and utilities with no problems.

About 2 months ago, there was an incident where I had tried to paint my room. Needless to say it turned into a disaster. I cleaned up the mess I made and told my friend what had happened. I had to leave for class, but told her to call me if there were any more paint stains that I had not seen. I would clean them up the next day if there were.

Later that night, I got several text messages saying how I completely ruined her house and that she spent 1 hour cleaning up after me. I was completely confused as to why she did not call me and tell me to clean it up myself. I appologized and let her know I would replace the items damaged (shower curtain, bath rugs). All together there was maybe $50 worth of damage, all easy fixes.

Weeks later she starts saying that the carpet needs to be replaced because of what happened. I went in there a couple days later to see if I could clean them, to avoid replacement. It was latex paint, so it was relatively easy to get out. I asked her if the carpets looked ok and she said they did.

About a month later I told her that I was planning on giving my months notice. There was still tension in the air from everything that had happened, and I really was not even living there. She was ok with that, but told me that she intended on keeping my $200 deposit. I thought that was strange because I had thought everything was rectified.

I had asked her why she intended on keeping the deposit, since it was refundable. She told me that there were still alot of damages from the paint incident. She said that the carpets needed to be replaced. I brought up the fact that she mentioned that I did a good job cleaning them. When I did that she backtracked and now is claiming that the tiles in the bathroom are damaged. I checked out the bathroom, there IS a small stain (about the size of a fingertip) barely noticeable on the grout.

I really feel as though I am being screwed to put it bluntly. Everything that she wanted replaced are things she has been planning on replacing since she bought the place. The tile itself was about 15 years old, the carpets about ten. Does she have the right to with hold the deposit? Especially when she was renting illegally in the first place?

I am completely ignorant of the Real Estate Laws in Utah (or anywhere else for that matter). I want to do what is right, for both parties. The reason I am concerned is that this completely came out of the blue. She never mentioned anything about tile until now. It is just strange. Anyway, any advice would be well received.

Thank you so much for your time
Amber

[OHlandlord]

Amber,
First, may I assume you were not breaking your lease with her and that it had come to its end? Or were there still months left on the lease? While she was not supposed to rent her unit, that is her problem with her condo owner's association, and doesn't involve you. She has to deal with them should they find out, not you.

If you broke your lease with her with time remaining on it, she can legally keep part of your deposit for unpaid rent while she attempts to rerent your area. Once it is rerented, you are no longer under any obligation to pay for rent on the unit. If there was no time left on the lease or if it was a month to month agreement, she is not entitled to any lost rent if you gave the correct amount of notice. UT law says the LL (your friend) must take reasonably prompt steps to re-rent the unit to minimize lost rent (and your deduction on such).

Most states (including UT) say she must give you an itemized statement of deductions from your deposit within 30 days of you vacating the unit. I'd wait and see if she does this, and what exactly she lists as itemized damages. (BTW, a product like Ooops or Paint Remover will take that paint right off grout with a toothbrush.) Give her a forwarding address *in writing* so she has a place to send your statement.

When you get this statement from her, please look it over carefully. When she charges you with deductions, she must charge you the *depreciated value* of things, not their replacement costs. Home owners are permited to take tax deductions for improvements on rental property. We must take a portion of the cost of items off our taxes over a specific number of years (called depreciation). As these things get older, they become less valuable because they are using up their useful life.

A carpet is depreciated over a period of 5 to 10 years, usually 7 (this comes from the IRS). If the carpet was already 10 years old, it has no useful life left and has no value. You cannot be charged for it. Tile also has a set number of years (but I don't know since I can't see what type of tile is there.) But most all flooring is lumped together in the same category (same number of years). Additionally, the LL must actually do the work (replace the carpet and tile) if they charge for it or it is not allowed as a deduction. They are allowed to charge for the cost of cleaning if the unit is not left in the same condition as you received it, less normal wear & tear. Damages from a bad painting job would not be considered wear & tear though.

Wait 30 days from when you moved out and see if she gives you this statement. Make sure you give that forwarding address to her. I'm betting you won't get a statement of damages. If she fails to send the statement to you, quote her the UT law that says she was required to send it (UT Code Ann. 57-17-1 to 57-17-5) and since she failed to meet UT law, demand the entire sum refunded immediately. (Do this in writing, send it certified return receipt requested, and keep a copy for yourself.) If she still refuses to refund your deposit, you can sue in small claims court for it. Good luck.

[weerock4ammy]

I appreciate the advice.

To start, I did not break the lease. I gave proper notice and my contract was up in Sept. I also provided Septembers rent just in case she could not cover everything with me gone (probably not a good idea, but what's done is done).
One of the reason I was concerned about what she was charging (I may have mentioned this already) was because she bought the property full knowing it was a fixer upper. She had every intention of replacing all of the things she ended up charging me in the end. It felt as though the incident was a good excuse to get that stuff done for free (even though there really was no significant damage). Now with that said, I did get an email from her last night. It looks as though she is conceding her stance on keeping my deposit. However, it is very vague and am not sure if it would hold up. Here is a cut and paste version of it:

"So, now that I've cooled down and had a min to sit and think about it, I really am done with this situations. I do forgive you for what happened but I def need to learn from it. Do what you feel what you need to do. I feel like I have done all that I can. I do apologize about that last email, especially if I said hurtful things. I am sorry. So, I'm going to leave it at this, do what you feel like you need to do. At some point would be appreciated if you dropped off your keys"

Where should I go from here? Should I take it at face value and just let it go? Is this something that she could go back and tell a court "I did not mean I did not want the deposit anymore". Provided it ever got that far of course. I just want to make sure this does not come back and bite me.

Also, is there a way I could get a confirmation that she receives the keys without actually handing them to her. This has cause so much stress (on both sides), I do not know if I have it in me to see her again. I was thinking of maybe sending the keys in the mail and get a receipt of delivery. Would that be something that would legally hold up? Again, I do not want this to bite me in the butt in a month or two. The reason I worry is because during the entire situation her story has changed several times. I really would not be suprised if it changed again.

Thanks again for all of your advice.
Amber

[OHlandlord]

Amber, there should be no problem with returning your keys through the mail. Tape the keys to a piece of cardboard and insert them in a small manilla envelope. Mail it to your former roommate by certified mail, return receipt requested. This will prove you sent them and show when she got them. Make sure she receives them before your rent for this month expires. Failing to return the keys signifies that you have not returned possession of the premises and that you still owe rent. So be sure to return them very soon.

You are right about the e-mail being very vague. She doesn't make any concessions in it, nor does she promise to return your deposit. She basically seems to be calling your bluff to see if you will pursue the return of your deposit. I doubt this e-mail will work for or against her in court. Send your keys and wait 30 days from when she recives them to see if you get a statement of itemized deductions. She must send this to you by law.

If you get a statement and disagree with the charges, send a challenge letter, detailing all that we have discussed here. Give her a reasonable time to respond (like 7-10 days). If she doesn't, file in small claims court for your deposit back. If she fails to send the statement, proceed as I outlined before, send the statement that quotes state law that she failed to meet. If she doesn't send it back, proceed to small claims court. Send everything to her by certified mail, return receipt requested from now on. Good luck.