Over the years, tenants have complained bitterly about landlords and homeowners not refunding their caution fee (also known as ‘security deposit’) when they are relocating. Have you ever experienced this or do you know anyone who has had this nasty experience?
The truth about caution fee is that under the law, you are legally entitled to get a refund of the caution fee you paid while you were paying your rent. However, there are landlords who frustrate this process with the motive of cheating you and getting away with it. Are you wondering what you can do to avoid losing your caution fee to such thieving landlords and real estate agents? Let us start by explaining what the caution fee is.
What is a Caution Fee?
The caution fee, according to real estate law, is an amount of money that you have to pay while renting a property. The caution fee is a percentage of your annual rent and will not be returned to you if you damage something or owe money at the end of your lease.
In other words, the caution fee is a sum, usually in the form of money, that you (tenant) agrees to pay the landlord before moving into the rented apartment. Below are some smart ways to avoid becoming a victim:
1. Take Precautions Along the Way
From the point when you move in, begin to treat the space like it’s your own property and not ‘just another rented apartment.’ When moving in and out, be careful not to damage the doors, walls or floors. Keep the property clean and in good condition while you’re living there. Clean up spills on the counters and floors immediately and be particularly careful with bright coloured carpets and delicate counters. Treat appliances with respect so they remain in good working order when it’s time for you to relocate.
2. Read and Understand your Lease Agreement
Certain landlords will allow you to make certain changes to the property while others won’t. A change you might consider minor may be prohibited in your lease you signed. If you want to make major changes; such as painting a room a new colour, ensure you get the landlord’s permission (and make sure it’s documented) before you do so as it will help avoid a conflict later on.
3. Make Small Repairs
It is almost impossible to live in a house without having the smallest of damages. Do not hesitate to fix any damages you might be accidentally responsible for. Don’t take anything for granted.
4. Document the Property’s Condition
It is advisable to take concise photographs of the property when you are moving into the apartment as well as when you are moving out of the property. Feel free to present both to your landlord when you’re moving out. In the event of the property having a defection or damage before you moved in, there would be enough proof to ensure that you get your caution fee (security deposit) refunded.
5. Report Damages
If you notice any damage to the property that you are not responsible for, you should make it a point of duty to report the damage to the landlord. This should not be done over a quick phone call. Instead, communicate this via a document that can be documented. Don’t forget to take pictures of the damaged part of the house. Regardless of whether you want your landlord to fix the damage or not, you should still let your landlord know.
6. Ask For Permission
Before you carry out any improvement on the property, ensure you get the approval of the landlord before you carry it out. Remember that what you might consider an improvement to the property might be considered a damage by the homeowner. For instance, if you decide to change the tiles in the house to a different colour, make sure you communicate this to the landlord.
If you do this the right way, you might even get cut a deal with your landlord on your next rent or getting compensated for your effort. The important thing is that you carry the landlord along in everything that you do.
7. Clean the House
Before you move out of a house, dedicate some time to giving it a thorough cleaning. Don’t forget to remove nails from the walls and ceiling. If the toilet seats are in really bad shape, you can replace them. Consider scrubbing the floor across the house, the shelves and other parts of the house that might throw clogs into your wheel of getting your caution fee back.
8. Arrange a Meeting With Your Landlord
Before you relocate, you should arrange a meeting with the landlord so that he/she can inspect the house in your presence. This is a good time to go through the checklist you drew up while moving in. Remember to ask the landlord if you will be charged for any cleaning or damage.
The response you get will determine whether you’ll need to carry out any repair works while you can still carry them out. If your landlord’s feedback indicates that there is no reason to hold on to your caution fee, push to get it at this meeting.
What if Your Landlord Refuses to Pay?
If your landlord refuses to refund part of your caution fee or all of it, try to negotiate. You can only negotiate for this if the refund is included in your lease agreement and this is why you need to go through the document thoroughly. The caution fee is usually a minimum of 10% of your rent so, you have to decide if the specific amount of money involved is worth your time and resources especially if you are tempted to pursue it legally.
Final Thoughts on Getting Your Caution Fee Back
While it is a known fact that there are horrid landlords who derive twisted pleasure from ripping you off, there are still good homeowners who are eager and willing to hand over your caution fee as soon as you decided to relocate especially if the property is not adjudged to be damaged.
