Security deposit dispute with new landlords

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kaleenashai

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I'm having trouble retrieving my rental deposit from my previous landlord. I left the apartments in good condition and provided them with a written 30 days notice, so neither of those is the issue. I put up a $500 deposit 4yrs ago when I moved in & since then, the apartment owers have changed 4 times. The current landlords are refusing to refund my full deposit because when they bought out the apartments, the landlords before them (owner #3) only showed I had put up a $200 deposit. So I went back, to my original landlords (owner #1) with whom I initially signed my lease with and they were able to locate a deposit slip specifying what I paid in both deposit ($500) and 1st month's rent ($361) as well as the total amount I paid ($861). Then, I brought them a copy of my cleared check from my bank for the full amount paid ($861). And even though I provided the current owners proof of my payment, they said they still cannot refund my full $500 unless the previous owners (owner #3) pay them the missing $300 1st; otherwise, they refuse to refund my full $500 deposit and will just refund the $200 they show in their records. Since I vacated the apartment in good standing and in good condition, and them being the current landlords aren't they still liable for refunding my deposit in full regardless of whether or not the previous owners paid them the full deposit amount at the time they purchased the property?
 
It is not your responsibility to worry about them getting paid by the previous owner. If the previous owner shorted them, they have to go after that person for the rest, and have no right to hold your money until the previous owner pays up. With the evidence you have, you would have a good case in small claims court. The problem with that is that you win a piece of paper saying the money is owed to you, and then have to attempt to collect on that judgment. Could always seek a free consultation with an attorney, and tack on any fees for said attorney to the civil suit, so that you get the money you pay the attorney back when and if you win. Can't predict what a judge will rule, but the evidence is overwhelmingly in your favor. The benefit to having an attorney would be that the attorney will collect on the judgment saving you a lot of time and money, and the new owner may have one of their own.
 
kaleenashai said:
I'm having trouble retrieving my rental deposit from my previous landlord. I left the apartments in good condition and provided them with a written 30 days notice, so neither of those is the issue. I put up a $500 deposit 4yrs ago when I moved in & since then, the apartment owers have changed 4 times. The current landlords are refusing to refund my full deposit because when they bought out the apartments, the landlords before them (owner #3) only showed I had put up a $200 deposit. So I went back, to my original landlords (owner #1) with whom I initially signed my lease with and they were able to locate a deposit slip specifying what I paid in both deposit ($500) and 1st month's rent ($361) as well as the total amount I paid ($861). Then, I brought them a copy of my cleared check from my bank for the full amount paid ($861). And even though I provided the current owners proof of my payment, they said they still cannot refund my full $500 unless the previous owners (owner #3) pay them the missing $300 1st; otherwise, they refuse to refund my full $500 deposit and will just refund the $200 they show in their records. Since I vacated the apartment in good standing and in good condition, and them being the current landlords aren't they still liable for refunding my deposit in full regardless of whether or not the previous owners paid them the full deposit amount at the time they purchased the property?
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New Mexico law is very clear on the return of security deposits.
You can hire an attorney, and the landlord will have to pay YOUR attorney's fees.
Many attorneys will take a case like this on contingency.
As MD said, your proof is overwhelming.
Hire a lawyer tomorrow and have the lawyer sue this deadbeat.
New Mexico law will impose a penalty beyond the amount of the deposit that also must be paid to you.
Get a lawyer and unleash the fury of a lawsuit!


The landlord has 30 days from the end of the tenancy in which to return the deposit or an itemized list of deductions plus any balance remaining from the deposit. The tenant must provide a forwarding address where he or she may receive this accounting.

If a landlord does not send an itemized statement and deposit balance to the tenant within 30 days of the date the rental agreement is terminated or the tenant moves out, whichever is later, the landlord forfeits all rights to any of the deposit and to take further legal action against the tenant in a court of a law. Thus, even if the tenant has incurred $10,000 in damages, the landlord loses the right to claim the damage if he or she has not acted within the 30 days. If the landlord fails to provide an itemized statement and return the balance of the deposit within the required time, the tenant may sue the landlord to recover the entire deposit, plus attorney's fees and court costs, and in some cases, civil penalty in the amount of $250. As noted above, the tenant is required to leave the landlord a forwarding address. If the tenant fails to do so, the landlord must send the balance of the deposit and itemized statement to the tenant's last known address.

http://www.rentlaw.com/dep/nmdeposit.htm
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MorgansDaddy- Thanks! Thats what I figured! I was thinking of consulting a lawyer for advice since the consultations are free and then, taking the matter to small claims court if it cannot be resolved soon. I just wanted a 2nd opinion. : )

Army Judge- Wow! I was not aware of all that. Yesterday was 30 days from the time of our rental agreement termination. They just sent me the $200 two days ago, but the remaining $300 has yet to be determined. They also included a letter with the $200 check explaining that they could not refund the remaining amount until they collected the money from the previous owners, but would not guarantee that they would be able to retrieve the money from them in order to refund me the remaining amount. They also suggested that I seek out the previous owners in hopes of collecting my deposit from them. I don't even have contact info for the previous landlords except the ones I initially signed the least with when I 1st moved in to the apartments. It all seemed rediculous so I thought I'd get another opinion. Thanks for that load of information you gave!
 
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Unfortunately, the current landlord is on the hook. If the security itemization form is sent out in time and he even documents an outstanding balance, he has hung himself. It's true you are not responsible and you have documentation to back up your case. True, you never know what a judge will do, but you have a lot going for you. with current landlord refunding $200 which in his mind was total security amount told to him, lets a judge know you were a responsible tenant and left the property in good standing. Penalties for not refunding security deposits within legal time frame can cause 2-3X the amount of the deposit being given to tenant as punitive damages. Maybe if you inform landlord if he give the $300 immediately within a certain time frame you won't pursue. Otherwise he can be held liable for much, much more (attorney fees, punitive damages...) Good luck.
 
Thank you all so much. It looks like legal action is going to have to be the way I go because they are still refusing to pay me anything and keep telling me to go to the previous owners and try and get my money from them since the current owners are not the ones I paid my deposit to. I told them I was going to take them to court on the issue and they seemed pretty nonchalant about it. I even spoke with my original landlords (owners #1) and she told me the same thing, that this whole thing is bogus and the current owners owe me the money.
 
kaleenashai said:
Thank you all so much. It looks like legal action is going to have to be the way I go because they are still refusing to pay me anything and keep telling me to go to the previous owners and try and get my money from them since the current owners are not the ones I paid my deposit to. I told them I was going to take them to court on the issue and they seemed pretty nonchalant about it. I even spoke with my original landlords (owners #1) and she told me the same thing, that this whole thing is bogus and the current owners owe me the money.
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Yes, they do owe you the money. You may have to wait a while, but it is worth going after them for the money plus attorney fees, plus punitive damages.

Being that they are landlords, they should know it is the previous and new owner's responsibility to handle transfer of security deposit, not the tenants, and if the previous owner didn't transfer it or all of it, they have to go after the previous owner, not the tenant. They probably know this but are banking on you not knowing, or figuring you are bluffing when you threaten legal action. More reason to pursue as much as possible in my opinion.
 
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