How would you like to pay a "non-refundable deposit"?  

Hi Everyone,

Let's talk about "non-refundable deposits" for a minute? What? Non-refundable deposits? If you are a property manager, like me, I hope your heartbeat is going up and you are ready to tell the person who said that that they are full of...! If you experienced this emotion, congratulations, you are on the right track to being a great property manager, who understands the importance of staying out of the courtroom.

Anyway, I recently read a letter from an unnerved tenant written to Apartment Management magazine. The tenant was asked to pay a $90.00 "non-refundable key deposit" (here we go again). First, I would like to clarify that, especially under Los Angeles rent control law, there is no such thing as a non-refundable deposit. A deposit is only that, a deposit, which is to be refunded or what is left of it, to the tenant within 21 days of the tenant vacating the unit. Items that can be deducted from a deposit are things above the normal wear and tear of a unit. You can also deduct the actual cost of replacing non-returned keys, remote controls etc.

A fee on the other hand, may only be charged for permissible purposes and charged at the time that the service was rendered. If for example, a tenant deliberately damaged the locks and threw the keys away (why would someone do that, you may wonder), then the landlord can charge the tenant the actual cost for replacing the locks, once the work was completed.

So, I hope you can differentiate between a deposit and fees, to make sure you are not violating any local laws.