Effective Date: January 1st, 2026
Key points:
Expanded Definition of Normal Wear and Tear:
The bill clarifies that landlords cannot deduct for damage or defects that existed before the tenancy or for conditions that fall within normal wear and tear.
Mandatory Walk-Through Inspections:
Landlords must provide a pre-move-out inspection upon request—either in person or via video—to identify any damage beyond normal wear and tear. The inspection must be scheduled at a mutually convenient time.
Bad Faith and Excessive Retention Penalties:
A landlord is presumed to have acted in bad faith if they withhold more than 125% of actual damages. Courts may award damages if the deposit is withheld without proper cause or documentation.
Carpet and Paint Limitations:
Deductions for carpet or paint are only allowed for substantial, irreparable damage beyond normal wear, and carpet must have been installed within the last 10 years to qualify.
Proof Burden on Landlords:
In deposit disputes, landlords carry the burden of proving actual damages and must supply written statements and documentation within 14 days of a tenant’s request.
Successor and Refund Handling:
Security deposits must be returned or transferred within 60 days of ownership transfer. If a refund check is returned, the landlord must hold it for 1 year and reissue it within 15 days of a tenant’s request.
