Returning the security deposit - Notice required to retain the security deposit

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For the landlord to retain any or all of the security deposit they must give a notice to the tenant within 7 business days of them leaving the premises. The notice must set out how much the landlord wishes to retain, what it is for and attach receipts and other supporting documentation.

This supporting documentation includes a statutorym declaration attesting to the truth of the claims being made and that the receipts, invoices and other documents attached to the declaration relate to the matters in respect of which part or all of the security deposit being withheld.

The landlord must also return the portion of the security deposit not being claimed. Failure to comply with section 112 of the Act will jeopardise the landlord’s right to retain amounts from the security deposit.

The landlord also faces a fine for failure to comply with section 112. PENALTY OF UP TO $2 200 If the tenant disputes the landlord's claim they should first attempt to resolve the issue directly with the landlord.

If the dispute is not able to be resolved, either party can refer the matter to the Commissioner for the dispute to be determined. Subject to section 113(2) of the Act, if the landlord has not returned the security deposit to the tenant or made a claim against the security deposit within 7 business days of the end of the
tenancy, the landlord is required to return the security deposit to the tenant in full.

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