SD Accounting
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SD Accounting (by LadyLL [MA]) Mar 22, 2012 8:00 AM
       SD Accounting (by Dan [MA]) Mar 22, 2012 8:09 AM
       SD Accounting (by LadyLL [MA]) Mar 22, 2012 8:17 AM
       SD Accounting (by Moshe [CA]) Mar 22, 2012 9:33 AM
       SD Accounting (by LadyLL [MA]) Mar 22, 2012 10:11 AM
       SD Accounting (by Moshe [CA]) Mar 22, 2012 10:28 AM
       SD Accounting (by LadyLL [MA]) Mar 22, 2012 10:38 AM
       SD Accounting (by Moshe [CA]) Mar 22, 2012 11:37 AM
       SD Accounting (by LadyLL [MA]) Mar 22, 2012 5:46 PM
       SD Accounting (by Moshe [CA]) Mar 22, 2012 8:35 PM
       SD Accounting (by BRAD 20,000 [IN]) Mar 22, 2012 9:24 PM
       SD Accounting (by LadyLL [MA]) Mar 25, 2012 7:03 PM


SD Accounting (by LadyLL [MA]) Posted on: Mar 22, 2012 8:00 AM
Message:

State Specific Question About: MASSACHUSETTS (MA)

So the topic of study today is Security Deposit Accounting. After scouring this website, and the web, I have learned what it can be used against: Unpaid rent, damages to property beyond normal wear and tear, pet damage, etc. I also learned I must be able to prove my expenses (show receipts and/or repair estimates), and that the accounting must include a "under the penalties of perjury" clause. What I can't find is a form for this. Does anyone know where I can get one? --76.119.xxx.xxx




SD Accounting (by Dan [MA]) Posted on: Mar 22, 2012 8:09 AM
Message:

There is no form, just write a simple concise letter. Dear X, your security deposit of $YYY is being retained to cover unpaid rent and damages. See list below with attached receipts. Signed under penalies of perjury. --74.8.xx.x




SD Accounting (by LadyLL [MA]) Posted on: Mar 22, 2012 8:17 AM
Message:

Thank You Dan! Looks like I might have gotten something right for a change. I am getting better at this. Now if only I can actually make money at it! --76.119.xxx.xxx




SD Accounting (by Moshe [CA]) Posted on: Mar 22, 2012 9:33 AM
Message:

1. Rather than scouring this website, and the web, you may be better advised to look at your state law, and what it specifies regarding deductions from the SD.

2. Of course you have to prove your expenses. You have to prove everything that you deduct. That means, proof that the repair was needed, that it is the tenant's fault and not wear & tear, that the price that you charged was reasonable.

3. the accounting must include a "under the penalties of perjury" clause. I don't know anything about MA, but I am surprised at that, unless it is specified in the MA statute that the accounting must be made under penalty of perjury. In general, if challenged, you will have to testify under oath to all the details of the deduction, and that should be enough, unless such a statement is REQUIRED in the accounting by statute.

--96.247.xx.xxx




SD Accounting (by LadyLL [MA]) Posted on: Mar 22, 2012 10:11 AM
Message:

I found the requirement of "under penalties of perjury" clause, as well as the expenses requirement, while I was reading the MA state law, at MA.gov. Although I am an idiot client/laywer, I'd reckon that might count as required. I also check the web for information, such as an easy to use form. I do keep receipts of everything for taxes anyway. It's just good to know that I must provide the tenant with a copy of them. Am I anywhere close to being slightly less than totally ignorant in your opinion today, Moshe? It's such a nice day here, that would make it even nicer. --76.119.xxx.xxx




SD Accounting (by Moshe [CA]) Posted on: Mar 22, 2012 10:28 AM
Message:

Not really. Not today.

--96.247.xx.xxx




SD Accounting (by LadyLL [MA]) Posted on: Mar 22, 2012 10:38 AM
Message:

LOL - I'll keep working on it then. --76.119.xxx.xxx




SD Accounting (by Moshe [CA]) Posted on: Mar 22, 2012 11:37 AM
Message:

I was surprised to see that MA requires that accounting for SD requires statement under oath.

Its unusual, but I can see the reasoning.

There are many posters on this site who advocate keeping money, and waiting to see if the judge will make them give it back. That is, of course, a not-good-faith approach, and I, for one, do not advocate such approach. MA law also requires that you submit written evidence evidence of costs. That way, the landlord may be already guilty of perjury, without the matter even going to court. Its not such a bad idea because it helps keep cheating to a minimum, and landlord cheating raises costs for all of us. On the other hand, it is a shame that some unscrupulous landlords cause such problems for the rest of us.

By the way, your scouring this website, and the web could have more accurately reflected what the law actually says. You can deduct unpaid water charges in MA. You can also deduct certain unpaid increases in real estate taxes from the security deposit.

And, I don't understand where you got that the accounting must include an "under the penalties of perjury" clause. The actual required clause is required to say "under the PAINS AND penalties of perjury". As I said earlier, you are always better advised to look at your state law.

--96.247.xx.xxx




SD Accounting (by LadyLL [MA]) Posted on: Mar 22, 2012 5:46 PM
Message:

Charging for water is a relatively new thing here in MA Moshe, and I don't think many of us do it. First off, you need a seperate meter, which I have. Secondly, you need to install low-flow devices on all of your equiptment, and then have it approved by the city board of health. Thirdly, I think water should be included with the rent, which is why I pay for the water, and this does not apply to me.

Unpaid real estate tax increases?? I also cover condo fees, property taxes and insurance (not renters - property). It's my house, and so I feel those are my responsibility. IMO, that's nickel and diming the tenant. Therefore, none of that applies to me either.

As far as "pains and penalties", I wasn't drafting the thing here, I was referring to the clause, which if I hadn't read it, I wouldn't have known about it, now would I?

When did it stop being fun for you Moshe? Do you ever have fun, or is everything a battle? --76.119.xxx.xxx




SD Accounting (by Moshe [CA]) Posted on: Mar 22, 2012 8:35 PM
Message:

My advice is to READ THE LAW. Its the only way to learn about how the court wants you to handle the business. The law says what the SD statement must contain. You don't draft it.

Its interesting. Mass law evidently says that you can deduct from SD for

-unpaid rent or water charges

-certain increases in RE taxes

-reasonable amount necessary to repair damage

MA law further says that "No deduction may be made from the security deposit for any purpose other than those set forth in this section. "

What about cleaning of premises after tenant leaves? According to the law, deduction from SD for that is strictly forbidden. How do MA courts handle that?

In the event that tenant leaves before end of lease, according to law, deductions from SD for damages due to rental loss under lease are forbidden. How does MA court handle that? What about expenses for re-renting premises? If you can't deduct from SD, then are you able to sue for these items.

My point, dear LadyLL, is that there is a lot to learn, starting with readsing the statutes and then following them up to try to understand what your court does with ordinary problems.

I spent 20 minutes looking this up, 15 minutes of which went to figure out how to use the search capability of MA law (its very poorly designed), and 5 minutes to learn what I could in 5 minutes about SD under MA law. I guess that I learned my money's worth.

You once took my advice about a tenant that didn't want you to come to the hearing. So here's another lesson. This one is free. In the future, I may send you a bill.

If you want to learn about MA law, you have to READ the statute itself, not a summary or handbook. And read carefully, asking yourself questions and following them up.

--96.247.xx.xxx




SD Accounting (by BRAD 20,000 [IN]) Posted on: Mar 22, 2012 9:24 PM
Message:

LadyLL,

Time to get connected with a local assoc. and get to StLouis!

Tenants know waaay more about the law than new LLs and scammer tenants eat newbie LLs alive. This one has taken you for a ride so far. Don't let it go any further.

I do everything by the law, but the law is silent on many points, so I have a written policy (the lease) we follow.

When completing a deposit settlement, I am aggressive, charge the full full amount, and present it in a way to crush any arguments.

I take very good before pictures and mate them with quality after pictures. The judge taught us the next part: he wants the room, the problem, and the cost to fix that problem under each photo. Simple, no back and forth to lists, etc.

"Bedroom 1: crayon on walls by resident. Repaint $235."

This is not Costco. This is "me cleaning up YOUR mess and I'm not happy so I charge for my time".

To get avoid handling reciepts, bills, etc, my judge allows LLs to use a list of standard charges on our lease. This also gets around some judges who believe the landlord should not charge for his/her own time. Even when hire it out, *I* still have time on the job.

I enclose a copy of the lease page with their signature to pre-agree, showing the list of repair costs and $35 per hour.

Remember, this packet is also your evidence for court if it goes that far.

Take more pictures than you ever expect to need.

As you prepare this, do not be naive. Know that repairs and cleaning left by a resident were on purpose. They consciously CHOSE to leave the mess for YOU.

Now YOU have to give up your evenings, weekends, money, etc to clean up THEIR mess.

Know they will use every trick possible to discredit your accounting, "Judge it was stained when we moved in", so be thorough.

DEFINELTY go spend time observing in YOUR courtroom BEFORE you prepare this document and learn about YOUR judge.

Best of luck tomorrow! Remember this as your screen the next one!

--50.129.xxx.xxx




SD Accounting (by LadyLL [MA]) Posted on: Mar 25, 2012 7:03 PM
Message:

1) Cleaning is on LL in MA.

2) This tenant is a holdover from a prior lease. Expenses for re-renting are like cleaning. I write off supplies that I buy, my work is how I earn my rent.

I do understand that MA is one of the toughest states to LL in Moshe. I have spent much time on that search engine, and you are right - it stinks!! I have read the law, and I have run everything by my housing specialist, just to make sure.

--76.119.xxx.xxx





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