tenant disputes a security deposit in court.

Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes

Hello,

I have been researching to see if there is a certain amount that the tenant can be awarded if I were to lose a dispute for the security deposit in Pennsylvania as I have heard in some states it can be 3x the amount of the deposit. Does anyone know if that is the case or what the exact law is in Pennsylvania? if so, if you can provide a link as well for my reference I would grealty appreciate it.

Thanks,

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @Linda Thomas:

You could deduct $1 from the deposit and refund the remainder 6 minutes after they move out, and they can still take you to court. That doesn't mean they will, and it doesn't mean they will win. If you followed the law and documented everything they were charged for, you shouldn't worry about being taken to court.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Linda Thomas:

It looks like they can sue for double the amount.
I manage 400 rentals, 13 years experience. I have never had a tenant sue me in court over a security deposit dispute. Not once. If you document before/after with photos and you handle the deposit within the timeline allowed, there's almost no risk of being sued.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Did you follow the law on handling the security deposit? If so you shouldn't need to worry.
Take a copy of the relevant law with you to court and show how you followed it.
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Linda Thomas
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Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes
3y
Quote from @John Underwood:

Did you follow the law on handling the security deposit? If so you shouldn't need to worry.
Take a copy of the relevant law with you to court and show how you followed it.
I diid, i sent the letter as requires by law within the 30 days with the details in depth of the deductions but they do not agree. I have my move in chexklist and was just trying to figure out if i withheld 900.00 if they can request double that amount?
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Linda Thomas
OP
Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes
3y
Quote from @Nathan Gesner:

Quote from @Linda Thomas:

It looks like they can sue for double the amount.
I manage 400 rentals, 13 years experience. I have never had a tenant sue me in court over a security deposit dispute. Not once. If you document before/after with photos and you handle the deposit within the timeline allowed, there's almost no risk of being sued.
So even if I send them the itemized list with all the deductions and the receipts within the 30 days they can still take me to court and request double
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Linda Thomas:

You could deduct $1 from the deposit and refund the remainder 6 minutes after they move out, and they can still take you to court. That doesn't mean they will, and it doesn't mean they will win. If you followed the law and documented everything they were charged for, you shouldn't worry about being taken to court.
The DIY Landlord Book4.7247 Reviews
Website View Page
3 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Linda Thomas:

Quote from @John Underwood:

Did you follow the law on handling the security deposit? If so you shouldn't need to worry.

Take a copy of the relevant law with you to court and show how you followed it.

I diid, i sent the letter as requires by law within the 30 days with the details in depth of the deductions but they do not agree. I have my move in chexklist and was just trying to figure out if i withheld 900.00 if they can request double that amount?

Do you have pictures and repair quotes to backup your deductions from the deposit?
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Sarah Ziehr
Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
3y
What are you withholding their deposit for? Before you go down this road I would make sure your deductions are legitimate. In Illinois if you mess around with a tenant's deposit, they can sue you for 3x the amount, and they will win.
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
In Seattle if you hold a deposit, unwarranted, you CAN be liable to pay back 3 times the amount, it's up to the judges discretion.
I had a case where I held the deposit for extreme damage to hardwood floors and furnace. Damages actually far exceeded the deposit. I followed the law, informed the tenant, with list of items, why they were not getting their deposit returned. The tenant sued for the return of their deposit. I was prepared with receipts, 3 estimates, and photos of the damage. Little did I know that I was up against a scum of a judge whose was known for being against landlords. I lost. I knew I was gonna lose before I even started my case. I could see it in her smug face. Judge claimed I did not give the tenant enough detail about why the damage deposit was kept. What? Unbelievable. Judges are elected, and gotta to be tough on those evil landlords. I expect fairness in a courtroom, and I think it's generally true, but sometimes you really never know what you're gonna get. There's a place in hell waiting for that one.
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John Liberati
Wholesaler · Macungie, PA · Member since 2015 · 32 posts · 28 votes
3y
The tenant can be awarded 2 times the amount of security deposit or the amount of security deposit minus damages. So lets say their security deposit is $500 and they caused damages of $100(and you have solid proof), But you decide not to give them their security back. They can sue you for $800.00 . I hope this helps. I'm not a lawyer so you still should check with your attorney and I'm not rendering legal advise.
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