The South Carolina Residential Landlord and Tenant Act explains the process that a residential landlord must adhere to when returning a security deposit to a tenant. The landlord must do the following:
- If there is no damage, return the entire security deposit back to the tenant at the tenant’s new mailing address within 30 days of termination of the lease or demand from the tenant.
- If there is damage to the unit, give the tenant a written notice identifying the damage and quantifying what amount of the deposit was used to repair the damage to the dwelling unit.
- If the damage does not exceed the amount of the deposit withheld, the remainder of the deposit must be returned to the tenant within 30 days of termination of the lease or demand from the tenant.
Example 1
Joe Renter, a residential tenant, rents a 2BR/3BA single family home for $1,000.00/month from Larry Landlord, a residential landlord, in Charleston, South Carolina. Joe has a one-year lease that ends on July 31; he gave Larry a security deposit equal to one month’s rent, or $1,000.00 upon moving into the unit a year earlier. Joe and Larry complete a move-out inspection on the 31st, and no new damage beyond ordinary wear and tear is revealed in the inspection. Joe moves out on the 31st. The next day Joe sends Larry an e-mail stating “Please send my security deposit to 555 Mary Street, Charleston, SC 29403.” Larry does not reply to Joe’s e-mail. September 1 arrives, and Joe has heard nothing from Larry.
Has Larry violated the Act?
The above scenario would be a violation of the Act. Larry wrongfully withheld Joe’s security deposit. Joe could hire an attorney and bring an action in magistrate’s court to recover his $1,000.00 from Larry. A magistrate court judge could award Joe up to $3,000.00 and have Larry pay for Joe’s reasonable attorney’s fees.
Example 2
Joe Renter, a residential tenant, rents a 2BR/3BA single family home for $1,000.00/month from Larry Landlord, a residential landlord, in Charleston, South Carolina. Joe has a one-year lease that ends on July 31; he gave Larry a security deposit equal to one month’s rent, or $1,000.00, upon moving into the unit a year earlier. Joe and Larry complete a move-out inspection on the 31st, and no new damage beyond ordinary wear and tear is revealed in the inspection. Joe moves out on the 31st. The next day Joe sends Larry an e-mail stating “Please send my security deposit as soon as possible. Thanks.” Larry never hears from Joe again, and Joe does not give Larry his new address. Larry looks at his original rental application for Joe and only sees another address of 1805 Green Street, Columbia South Carolina (Joe’s parents’ address). Larry mails Joe a check in the amount of $1,000.00 for Joe’s security deposit to 1805 Green Street on August 15th. Unbeknownst to Larry, Joe’s parents no longer live at 1805 Green Street. Joe calls Larry back on September 1 and asks, “Where is my security deposit?” Larry says, “I mailed that to you over two weeks ago.”
Has Larry violated the Act?
No. Joe had a duty under the Act to notify Larry of his new address upon moving out of the dwelling unit.
Example 3
Joe Renter, a residential tenant, rents a 2BR/3BA single family home for $1,000.00/month from Larry Landlord, a residential landlord, in Charleston, South Carolina. Joe has a one-year lease that ends on July 31; he gave Larry a security deposit equal to one month’s rent, or $1,000.00 upon moving into the unit a year earlier. Joe and Larry complete a move-out inspection on the 31st, and the inspection reveals a broken window. Joe moves out on the 31st; Larry tells Joe he will get an estimate on what it costs to fix the window and deduct the amount from Joe’s security deposit of $1,000.00. The next day Joe sends Larry an e-mail stating “Please send the remaining portion of my deposit not used to fix the window to 555 Mary Street, Charleston, SC 29403. Thanks.” A week later, on August 6th, Joe receives a letter from Larry. The letter has a check for $100. Larry includes a note stating, “The window cost $900 to fix.” Larry provides no receipt or invoice for the work performed. Joe thinks he has been grossly overcharged to fix the window.
Has Larry violated the Act?
Yes, most likely. Joe should ask for an invoice from Larry. If Larry cannot provide an invoice, Joe would be wise to receive an estimate from a local contractor on what it would cost to replace a similar window. If a similar window costs $200.00 to fix, Joe would be wise to file a claim against Larry for an amount wrongfully withheld of $700.00 (i.e., $900.00 – $200.00 = $700.00). Under the Act, a magistrate judge could award Joe up to $2100.00 damages (i.e., 3 x $700.00) in addition to reasonable attorney’s fees.
Conclusion
When trying to determine whether a landlord has wrongfully withheld your security deposit always ask three questions: (1) Did my landlord give me my money back within 30 days of termination of the lease or my request for a return of my security deposit? (2) If any portion of the security deposit was withheld, did my landlord provide me a written notice stating why any portion of my security deposit was withheld?, and (3) Was the landlord’s charges reasonable and/or substantiated by proper documentation? If the answers to these questions are not a resounding “yes”, your landlord may have violated the Act.
