New landlord - security deposit question

[Matthew Colville]

I’m a new landlord in CA and missed the 21 day window to return the security deposit (I thought I had 30 days). Does that mean I forfeit any right to make any deductions for damage and must return the whole deposit?

[Diyan Yap]

What does it says on your lease agreement ? 

[Theresa Harris]

Probably based on this "Within 21 days after move-out, the landlord must send the tenant an itemized statement explaining in detail any deductions from the security deposit (unless they total less than $125), and return the rest of the deposit."

Hopefully there wasn't a lot of damage.  Best thing is to always check the unit as soon as the keys are turned over and take photos.  If a tenant says I left it spotless and it is full of garbage 2 weeks later how do you know the tenant did it or if someone broke in and did it? 

[Russell Brazil]

Well you've broken the law by not returning it in the time frame. If you withhold now, and the tenant knows the law, you're setting yourself up for failure.

[JD Martin]

Quote from @Russell Brazil:

Well you've broken the law by not returning it in the time frame. If you withhold now, and the tenant knows the law, you're setting yourself up for failure.

 Right. The safest thing to do is abide by the law, and since you missed the window the honest thing to do is return the deposit. Think of it as a (hopefully not too) expensive lesson on the ins and outs of deposit management; I bet you won't make the same mistake again!

[Nathan Gesner]

Yes, if you violate the law and the tenant sues, you could lose 3x the amount. It's best to return the entire deposit and chalk this up to an education fee.

[Adam Bartomeo]

It does NOT depend on what the lease says, it depends on what the LAW says. In the state that I have owned real estate in there are different timelines for security deposits. Here in FL you have to notify the tenant of imposing a claim in 30 days and if no claim return within 15 days. I cannot remember CA law but you can find it easy enough. 

Also, even though you may have to return the full deposit due to a technicality, you should still be able to put them in collections and/or seek a judgement.

Honestly, I would try to find a win/win. Contact the tenant, have a conversation about retaining a portion of the deposit (probably going to have to cut them a break), get them to agree, put it in writing for both parties to sign, and send them the remainder.

[Jamie Petraglia]

Free platforms are available to landlords that protect you so you don't miss the state return policy. You also don't need to send physical checks, as the deposit stays in the resident's name. You upload a financial move-out statement, and you get up to the amount of the deposit.