Late fees, security deposits cause problems
February 27, 2008
When it comes to off-campus housing, two issues – fees for late rent and the return of security deposits – have received legal attention in the past.
One clause renters should make common knowledge addresses what fees landlords can legally charge for late rent. According to Chapter 535.2(7) of the Iowa Code, a late payment fee “shall not exceed ten dollars a day or forty dollars per month.”
Another issue that students deal with more, however, is the return of security deposits.
“That’s definitely the number-one issue I see the most, the alleged failure of timely return” said Michael Levine, legal consultant with Student Legal Services.
If students and landlords cannot come to an agreement about how to resolve the issue, court is often the only remaining solution.
“It’s up to the landlord and tenant to resolve the dispute, and sometimes that means going to small claims court,” said Doug Marek, city attorney.
Gary Hunziker, owner of Hunziker Property Management, said that’s not a very common outcome with his agency, at least not with deposit returns.
“In 15 years and around 7,000 move-outs, I’ve been taken to court by a tenant three times, and we haven’t taken tenants to court often, either,” he said.
Hunziker said that, if there is reasonable cause, students should go to small claims court because there isn’t much financial risk.
“It’s only $50 to file a court claim,” he said.
Levine said that, in his experience, students come out ahead in the courts.
“Usually, the deposits are returned and the prevailing party gets their court costs covered,” he said. “In some circumstances, there is also the chance for punitive damages to be awarded.”
If students have problems with their landlords over terms in a lease agreement or other issues, the first step they take should be to simply sit down and talk about it. One agency that may assist with communications between students and landlords is Student Legal Services.
“It’s very common for students to come in to us because of a wide variety of issues with their landlords,” Levine said. “Our role is that of giving legal advice, or representation for students should they go to court.”
Hunziker said his company does its best to act ethically with its renters.
“Honestly, we try to do what is right and fair,” Hunziker said. “I think our record shows that.”
A source of legal advice most people would consider turning to, the city, is often unable to help.
“The city attorney’s office doesn’t really deal with landlord-tenant disputes, except when there is a violation of the city’s rental housing code,” Marek said. “For violations of the terms of a lease or rental agreement, the landlord and tenant must seek private remedies.”
In years past, there was a group on campus that helped mediate discussions, providing a service that was helpful to everyone involved in the process.
“When that office was open and we had students come in here with complaints about their landlord, we sent them right to that office,” said Judy Parks, assistant city attorney. “Now, when a student comes in here, we can only say, ‘Sorry, we can’t help you.”’