Question

How must a landlord handle the security deposits he collects from his tenants?

The deposits can only be used to make repairs on residential units.

The landlord can use the security deposit to pay outstanding utility bills left by the tenant.

Security deposits must be held in interest-bearing accounts, with the interest paid out to tenants when they leave.

The landlord must return a security deposit to a tenant within 3 weeks of the end of the lease.

Answer 1

Since the dawn of time, landlords have been taking “security” or damage deposits from tenants to insure against potential property damages. Landlords require tenants to provide the money up front, usually one or two month’s worth of rent. This money is then held by the landlord until the end of the lease, and returned if there are no damages.

Technically, the security deposit money does not belong to the landlord. It’s on loan, while the tenant lives in the rental property.The landlord must keep it safe until it is time to either to offset damages or return it to the tenant.

Hence ideal way to handle is return a security deposit to a tenant within 3 weeks of the end of the lease.

Correct Ans - D