Momentum builds to end security deposit theft

California is a deep-blue state, with a Democratic Governor and a two-thirds super-majority in both houses of the legislature.  It is the home to 15 million tenants in an overheated rental market, and ground-zero in the nation’s foreclosure crisis.  Now is the time to get real change in the Golden State.

But when it comes to common-sense tenant rights laws, too many Democrats vote the wrong way.  They take large donations from the real estate lobby, which wields undeserved clout in Sacramento.  Even some “progressive” Democrats who represent deep-blue, urban districts are not our best allies.

At Tenants Together we're working to change how tenants are treated in Sacramento. On Tuesday May 7th, dozens of Tenants Together members took to the Capitol for a “Day of Action” to urge State Senators to support SB 603, a bill to promote security deposit reform. While tenants were walking the halls of the Capitol, the Senate Judiciary approved the bill by a vote of 4-1, a key step toward passage of the law. The “Day of Action” was a show of force by tenants in a capital often dominated by real estate industry lobbyists.

Members who participated in the Day of Action were victims of security deposit theft and allies. One member, Sebrina, flew in from San Diego to make sure Senators heard her story. Sebrina says, “My deposit was partially withheld for cleaning and unnamed “damages.”  I left the place cleaner than it was when I moved in.  As for damages, I have no idea what the landlord was talking about and they never explained or documented any repair expenses.  The apartment sits now, almost 3 years later, as storage for odds and ends and paint, tools, unused carpet and so on. No one has ever lived there since I moved.”

At the Senate Judiciary Hearing Sen. Mark Leno (D – San Francisco) emphasized how many tenants across the state are suffering under the unfair treatment of tenant security deposits, and now is the time to act. Chair of the Committee, Noreen Evans (D – Santa Rosa), said that she herself had experienced unfair deposit withholding as a renter and felt this was an important bill to pass. Votes in favor were Sen. Evans, Sen. Bill Monning (D – Monterey), Sen. Ellen Corbett (D – East Bay), and Sen. Leno.

Supporters and advocates who could not make lobbying efforts participated in the “Day of Action” by writing letters and making calls to their senators. SB 603 now moves to the Senate floor where a vote is expected before the end of May.

The real estate industry has lobbyists every day in the State Capitol, many of whom are shameless about spreading misinformation and trying to intimidate Democratic legislators in voting against tenant protections.  With your help, we can make sure that Sacramento listens to the state’s 15 million renters – by voting “yes” on SB 603. We need every tenant in California to call their Senator NOW!

To learn more about SB 603 – Security Deposit Fairness visit:
YourDeposit.org, Estudinero.org, or follow the campaign on Twitter @EndDepositTheft

Check out all our photos from Lobby Day on Facebook.

Check out all our photos from Lobby Day on Facebook.

New Report Shows Lack of Accountability for Improper Security Deposit Withholding

Tenants Together has released a new report on security deposit withholding by California landlords. Entitled No Deterrent: Improper Security Deposit Withholding in California, the report finds widespread deposit withholding with virtually no accountability for wrongful withholding.

According to the report, California landlords hold an estimated $5 billion of tenant security deposits, and annually in excess of $1 billion of deposit money is in play when tenants vacate their homes and landlords must decide whether to return deposits. Sixty percent of the tenants surveyed reported experiencing unfair deposit withholding. The report includes an analysis of small claims cases revealing that only in the rarest cases do courts impose penalties on landlords that improperly withhold deposits.

The report contains the following findings from a survey of Tenants Together members from across the state:

• 60% experienced unfair withholding of some or all of their deposit;
• 53% did not receive any of their deposit funds within 21 days of vacating the last time they moved;
• 36% reported that their entire deposit was never returned the last time they moved.

The report also analyses of the outcomes of security deposit cases filed by tenants in small claims courts to recover their deposits. The three-courthouse study, the first of its kind in California, found:

• Tenants prevailed in over 70% of the cases that went to judgment;
• In only 3.5% of the security deposit cases filed by tenants was a landlord assessed a penalty by the court.

The report recommends two reforms to ensure that tenants are not unfairly deprived of their deposits. First, it is recommended that tenant deposits be kept in accounts that are separate from the landlord's personal. Second, it is recommended that mandatory penalties be imposed for improper retention of security deposit funds by landlords. Together these reforms will help ensure that deposit funds are preserved until the end of the tenancy and are returned as required by law.

Responding to complaints of unfair security deposit withholding across the state, Senator Mark Leno (D - San Francisco) introduced Senate Bill 603 earlier this year. This statewide bill would make the changes recommended in the new report (requiring separate accounts for deposits and mandatory penalties for improper withholding), and also address a longstanding inequity regarding security deposit interest. SB 603 is co-sponsored by Tenants Together, Western Center on Law and Poverty and California Rural Legal Assistance Foundation. SB 603 will be heard in the Senate Judiciary Committee on May 7, 2013.