Security Deposits

Most tenants are in belief that when they pay a security deposit, they won’t ever see it again. This misconception has caused many to lose their deposit unnecessarily.  When a tenant vacates a rental property at the end of their leasing agreement, they have rights regarding their security deposit.

Utah Code 57-17-3 specifies the timeframe and obligation a landlord has regarding a renter’s security deposit. Under this code, a landlord can apply a deposit toward payment of rent, damages to the premises beyond reasonable wear and tear, other costs and fees provided for in the lease agreement or cleaning of the unit

Within 30 days after the date a tenant vacates and returns possession of the rental property to the landlord, the landlord shall deliver to the tenant at their last known address: A- the balance of any deposit, B- the balance of any prepaid rent; and C- If any deductions were made from the deposit, a written notice that itemizes and explains the reason for each deduction.

When a tenant does not receive the information as required under Utah Code 57-17-3 within thirty (30) days of vacating the rental unit, they can complete and serve upon the landlord a Notice to Provide Deposit Disposition. This notice tells the landlord that they have five (5) business days to comply with the code by refunding the security deposit, and providing a notice of any deductions made on the tenant’s security deposit.

Supposing that the landlord fails to provide the requested documentation within five (5) days of being served the Notice to Provide Deposit Disposition; they are required to refund the entire security deposit, along with a penalty of $100.00 to the tenant for failure to respond to the notice. If the landlord fails or refuses to return the security deposit and the penalty fee, the tenant can pursue litigation under the statute requesting the entirety of their security deposit, the penalty for failure to comply with the written notice, along with court costs and attorney fees.

If all fails and you need to know your rights regarding a security deposit, do not navigate it alone. We are happy to assist you with this process. Please contact our office at 801-612-9299 and request to speak with Brooke for more information and assistance.

https://www.utcourts.gov/en/self-help/categories/housing/landlord/refunding-deposits.html

[1] https://le.utah.gov/xcode/Title57/Chapter17/57-17-S3.html?v=C57-17-S3_2018050820180508

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