The Residential Landlord-Tenant Act (RLTA) regulates the relationship between residential landlords and tenants, including the duties of tenants and landlords and remedies for violations of those duties.

Tenants must restore the premises to their initial condition except for normal wear and tear or conditions caused by failure of the landlord to comply with RLTA obligations.  Landlords may collect a damage or security deposit to cover any damage caused to the property by the tenant in excess of normal wear and tear resulting from ordinary use.  The RLTA requires that the deposit be placed in a trust account.  Any interest earned generally belongs to the landlord.

To collect a deposit, the RLTA also requires that the rental agreement be in writing, and a written checklist or statement specifically describing the condition, cleanliness of, or existing damages to the premises and furnishings, including walls, floors, counter tops, carpets, drapes, furniture, and appliances, must be provided by the landlord to the tenant at the beginning of the tenancy.  Both the landlord and the tenant must sign the written checklist, and the landlord must provide the tenant a copy.  Failure to provide the written checklist subjects the landlord to liability for the amount of the deposit.

Within 21 days after the termination of the rental agreement and vacation of the premises, or after abandonment by the tenant, the landlord must give a full and specific statement of the basis for retaining any of the deposit and pay any refund owed to the tenant.  No portion of any deposit may be withheld on account of wear resulting from ordinary use of the premises.  A landlord complies with this requirement if the required statement or payment, or both, are delivered to the tenant personally or deposited in the mail within 21 days.

Failure to do so within the time specified subjects the landlord to liability to the tenant for the full amount of the deposit.  The landlord is prohibited, in any action brought by the tenant to recover the deposit, from asserting any claim or raising a defense for retaining any of the deposit unless the landlord shows that circumstances beyond control prevented compliance or that the tenant abandoned the premises.  The court may award up to two times the amount of the deposit for intentional refusal by the landlord to provide the statement or refund due.

If damages exceed the amount of the damage deposit, the landlord may proceed against the tenant to recover such amounts and reasonable attorneys' fees.

A landlord may not withhold a deposit on account of wear resulting from ordinary use of the premises.  "Wear resulting from ordinary use of the premises" is defined as deterioration that results from the intended use of a dwelling unit, including breakage or malfunction due to age or deteriorated condition.  Such wear does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, fixtures, equipment, appliances, or furnishings by the tenant, immediate family member, occupant, or guest.  Statutory references to normal wear and tear are replaced with wear resulting from ordinary use of the premises.

The landlord must refund any deposit owed to the tenant, and provide documentation explaining the basis for retaining any of the deposit, within 30 days after the termination of the rental agreement or the landlord learns of the tenant's abandonment of the premises.  The landlord must also include copies of estimates received or invoices paid to reasonably substantiate damage charges.  If repairs are performed by the landlord or the landlord's employee, the landlord must provide a copy of the bill, invoice, or receipt and a statement of the time spent and the reasonable hourly rate charged.

A landlord may not withhold any portion of a tenant's deposit:

• for wear resulting from ordinary use;
• for carpet cleaning unless the landlord documents wear to the carpet that is beyond wear resulting from ordinary use;
• for the costs of repair and replacement of fixtures, equipment, appliances, and furnishings if their condition was not reasonably documented in the written checklist supplied at the commencement of the tenancy; or
• in excess of the cost of repair or replacement of the damaged portion in situations in which the premises are damaged in excess of wear resulting from ordinary use, but the damage does not encompass the entirety of the item.

Damages for wear resulting from ordinary use of the premises or not substantiated by documentation may not be charged to the tenant; reported to any credit agency, tenant screening service, or prospective landlord; or submitted for collection by any third-party agency.

 
Any lawsuit by the landlord to recover sums exceeding the amount of the damage deposit must be commenced within three years of the termination of the rental agreement or the tenant's abandonment of the premises.

The requirements for checklists and documentation do not apply to situations in the landlord withholds any portion of the security deposit for reasons unrelated to damages, such as for rent or other charges owed.