QUESTION FROM ONE OF MATT’S READERS-

“I just came across your website and found it very helpful. I have a question concerning a landlord issue. We recently just moved out of a home we were leasing. We did everything the landlord asked for and followed the lease perfectly. During the time we stayed there the landlord would visit almost everyday unannounced. He would use the driveway and work in the shed behind the house. Many of his friends would just wander the yard also. He also used our water hose almost everyday. We did talk to him about this and he told us we had to get use to it. We decided we would just stick it out and not renew our lease.

Upon moving out the landlord said we had left a small spot on the back of his 32 year old pink countertop. He rented the property out right after we moved and is still using the countertop. He charged us $540 for the small spot saying it had 3 years left his loss. So he was charging us $180 a year. I read up on Indiana law and I thought it said he can only charge fair market value. I also read we were entitled to have reasonable notice when he came on the property. That we were entitled to peaceful living which we definally did not have ( I did take many pics/videos of him coming and going all the time) Do we have any rights? The 45 day deposit letter he sent us just said he was charging us $180 a year his loss. Is it vaild? He has no intention on fixing or replacing the counter plus he is still using it. Do we have any rights? He also asked us to lie for him if the county assesor came by. He is saying his wife lives in the rental under her maiden name so he can claim the homestead exemption. Is the lease vaild if he does not even own the home? The home is under his wifes maiden name only. Any input would be greatly appreciated! Thank you for your time.

Maria”

Matt’s Answer-

Landlords are not always right.  Tenants are not always wrong.  If your facts are correct, you might have a very good case.  Indiana has a security deposit statute that poses a “Zero Sum Game” for landlords.  If a landlord wrongfully holds a security deposit after the lease ends, the landlord loses.  If a landlord fails timely to provide the “45-Day Letter” and any security deposit balance owed to the tenant, the landlord loses.  So, landlords should be careful to follow the “45-Day Letter” Rule very carefully.

Sounds like this landlord is trying to cheat you,  Fight it.  Don’t let him charge you for a new countertop, when you did not even damage the old one.  Right is right, and this landlord is wrong.  You should consider going to small claims court.  I would need to see your evidence and the lease to be certain about your best options.

You might want to read this post-  Indiana’s Security Deposit Law

Good luck.

Matthew A. Griffith is an attorney, business performance coach, mentor and entrepreneur.  He coaches, advises and guides business owners, entrepreneurs, inventors, property managers, investors and real estate professionals.  Matt has nearly two decades of experience helping businesses grow.

Question from one of Matt’s readers-

“Dear Mr. Griffith,

I rented an apartment in West Lafayette IN for six months and the lease ended on DEC 31, 2008. I had vacated the apartment on DEC 22, 2008 and left the keys and forwarding address with the landlord. Does the 45 days count from the date my lease ends or the date I left the forwarding address? I will appreciate your response.

Thanks,

S.A.”

Matt’s Answer-

Your question concerns Indiana’s security deposit statute, also known as the 45-Day Letter Rule.  Most states have a similar rule.  The 45-Day Letter Rule governs how a landlord of a residential property must handle the tenant’s security deposit after the lease is terminated.

In Indiana, the 45-day triggering event is the date the landlord regains possession. For you, that would be the date you returned the keys.

The statute requires the landlord to provide you (via US mail is acceptable) with an itemized list of any damages, which can include unpaid rent, and the balance of your security deposit, if any.

I represent far, far more landlords and property managers than tenants.  So, I can say with great confidence that the 45-Day Letter Rule is not well understood or even known by most landlords.  In fact, when I speak at the “Ask Matt” portion of the monthly meetings for CIREIA, I often ask how many attendees (real estate investors) do not know about the 45-Day Letter, and there are no fewer than 10 hands raised each time.

For more information on this law, visit the "Ask Matt" page at CIREIA’s website-  http://www.cireia.org/clubportal/ClubStatic.cfm?clubID=1507&pubmenuoptID=21366

Another question from one of Matt’s readers

"I was at the CIREIA meeting tues. and had a few questions about the 45 day rule.

1. Does it apply to section 8 also?

2.Does this also apply to section 8 unpaid utilities and any damages after they move out?

Thanks for your time,

B.H."

Matt’s Answer-

The 45-Day Letter Rule applies whenever any landlord takes any "security deposit" from any residential tenant in Indiana.

A "security deposit" is anything beyond the first month’s rent.  So, if you take the first and last months’ rent, you have a security deposit in the form of the last month’s rent.

What’s CIREIA?   

It is the Central Indiana Real Estate Investors Association.  I’ve been its Legal Affairs Chairman for more than 15 years.  For more information on CIREIA, go to its website- CIREIA’s Website.  If you are serious about owning investment real estate in Indiana, you should be a member of CIREIA.  Joining CIREIA for $150/year-  that’s a “no-brainer.”

.