Landlord-Tenant Ordinances

Seattle has rules; Chicago has rules; New York City has rules; many cities in many states have rules for landlords and tenants. Municipalities may enact key ordinances that regulate rental housing in their cities/areas. The above mentioned cities are but a few of major metropolitan areas that have landlord-tenant codes and ordinances. However, cities do not have to have large populations in order to set rules and regulations for landlord-tenant rights and responsibilities. Small towns can be more stringent in their requirements for rental housing than their respective state’s requirements. Recent rental housing legislation by some city councils and/or housing authorities has strengthened protections against applicant/tenant discrimination and required landlord disclosure of rental policies and practices.

Accordingly, landlords are advised to research all applicable laws and maintain currency with all rental housing issues. Rental policies must be fully compliant with requirements at all levels of governing authorities. Research must include determination if rent-control, rent stabilization or rent subsidy regulations are applicable and how such regulations integrate with landlord-tenant laws and property management operations. Such risk management measures must be incorporated into business policies and practices to protect the landlord’s business, tenants’ rights, and comply with legal requirements.

As example of how local ordinances can impact the landlord’s business and property management, there are new rules for Seattle landlords. Recent ordinances enacted by the Seattle City Council affect how landlords set and communicate rental policies to applicants and tenants.

One ordinance in particular, commonly referred to as the “First-in-Time” Ordinance, believed to be the first of its kind, requires landlords to screen completed rental applications in chronological order to determine whether an applicant meets all screening criteria necessary for approval of the application and to offer tenancy of the available unit to the first applicant who meets the minimum criteria.

The landlord’s tenant screening policy is now regulated by ordinance. Per the Seattle Municipal Code it is an unfair practice for a landlord to fail to provide notice to a prospective tenant of the criteria the landlord will use to screen prospective occupants and the minimum threshold for each criterion that the applicant must meet to advance in the application process. This includes providing notice of any different or additional criteria that will be used if the landlord chooses to conduct an individualized assessment related to criminal records. Notice can be in writing, a posting in the building where the unit is physically located and, if existing, on the website advertising of the rental of the unit, in addition to and at the same time as providing information required by Washington state statute RCW 59.18.257(1).

A rental application is considered complete when it includes all information, documentation, and submissions as stated in the notice. A landlord must note the date and time when he receives a completed rental application, whether submitted through the mail, electronically, or in person. A landlord must screen the completed rental applications in chronological order to determine whether an applicant meets all screening criteria as noticed.

If, after conducting the screening, the landlord needs more information than was stated in the notice, the landlord must notify the applicant in writing, by phone, or in person what additional information is needed and state the specified period of time, at least 72 hours, which the applicant has to provide the additional information. If the additional information is provided within the specified timeframe, the original submission date of the completed application (for purposes of determining chronological order of receipt) is not affected. If the information is not provided in a timely manner, the landlord may consider the application incomplete or reject the application.

A landlord must offer tenancy of the available unit to the first applicant meeting all the screening criteria necessary for approval of the application. If the first approved applicant does not accept the offer of tenancy for the vacant unit within 48 hours of the offer being made, the landlord can review the next completed rental application in chronological order and follow the proscribed process until a qualified applicant accepts the landlord’s offer of tenancy.

If an applicant requires additional time to submit a complete application for reasonable accommodation or other exception as permitted by ordinance, the applicant must make a request to the landlord. The landlord must document the date and time of the request to serve as a date and time of receipt for purposes of determining chronological order of receipt. A landlord shall not unreasonably deny a request for additional time. This does not affect the duty of the landlord under local, state, and federal law to grant reasonable accommodation to individuals with disability.

First-in-Time Evaluation

The City will conduct an evaluation 18 months after implementation of the First-in-Time program to determine whether the program should be maintained, amended, or repealed. The evaluation should include analysis of the impact on discrimination based on a protected class and the ability of low-income persons and persons with limited English proficiency to obtain housing.

Other Provisions

Discrimination Protections

The Municipal Code strengthens protections against applicant discrimination. It is illegal in the City of Seattle to discriminate against any person because of race, color, creed, religion, ancestry, national origin, age, sex, marital status, parental status, sexual orientation, gender identity, political ideology, honorably discharged veteran or military status, participation in a Section 8 or other subsidy program, alternative source of income, presence of any disability, use of a trained dog guide, or service animal by a disabled person.

Alternative Sources of Income

Verifiable alternative sources of income may be Social Security benefits, Supplemental Security Income, unemployment insurance, child-support payments, veteran benefits, short term rental assistance, and other support programs. Rejecting applicants who have such sources of income is illegal. However, the Ordinance states that nothing in the Ordinance shall be interpreted to prohibit any person from making a choice among applicants on the basis of factors other than those noted above.

​Rent Subsidy

The landlord must cooperate with applicants or current tenants to complete and submit information and documentation required for eligibility or receipt of rental assistance from Section 8 or another rental subsidy.

It is an unfair practice for a landlord to apply an income screening criterion, such as an income to rent ratio, in a manner inconsistent with:

• any payment from Section 8 or other subsidy program that reduces the amount of rent for which the tenant is responsible must be subtracted from the total of the monthly rent and
• all sources of income must be included as part of the tenant’s total income.

This means that a landlord may only consider the tenant’s portion of the rent for income-based eligibility screening. Rent subsidies are reductions in monthly rent and are not considered income.

A landlord must accept a written pledge by a Section 8 or other subsidy program to pay for past due or current housing costs and court costs or reasonable attorney’s fees already incurred and directly related to recovery of unpaid housing costs lawfully owed under all of the following conditions:

• by itself or in combination with: other payments from a Section 8 or other subsidy program and any verifiable source of income including but not limited to wages, salaries or other compensation for employment and all alternative sources of income, the written pledge is sufficient to allow the tenant to become current on all housing costs and court costs or reasonable attorney’s fees already incurred and directly related to recovery of unpaid housing costs lawfully owed once the pledge is fulfilled,
• the written pledge is received by the landlord at any time prior to
  • issuance of a notice served to pay or vacate,
  • end of time period allowed for compliance in notice served to pay or vacate,
• The written pledge does not commit the landlord to any conditions, including any agreement not to pursue future unlawful detainer actions except those requiring the landlord to provide timely information necessary for payment, and
• Section 8 or other subsidy program provider commits to paying written pledge within five business days of issuance of written pledge. Where possible payment should be made directly from Section 8 or other subsidy provider to the landlord.

Preferred Employer Program

It is an unfair practice to advertise, institute, or maintain a preferred employer program. A preferred employer program is a policy or practice in which a landlord provides different terms and conditions including but not limited to discounts or waivers of fees or deposits because the applicant is employed by a specific employer. Any existing employer program that is part of an unexpired rental agreement may continue until the occupant vacates the unit and the rental agreement is terminated.

Answer:

Some tenants may offer to find a replacement tenant to rent the unit in an effort to facilitate negotiations or help reduce the time the unit will be vacant and therefore reduce the current tenant’s debt. While this may be of benefit to some landlords in some markets, it is the landlord’s decision to accept the tenant’s offer of help conditioned upon the replacement qualifying under the landlord’s standard rental practices, including application, screening, and selection procedures. The landlord will sign a new lease with the new tenant and a termination agreement with the old tenant to release the old tenant from the lease agreement.

Answer:

A landlord has the right to set rules on guest visits to the rental property. A landlord also has an obligation to protect the safety and privacy of his tenants. A guest policy helps to protect the rights of the other tenants and prevent unwelcome or unwanted stays by guests.

Tenants also have the right to “quiet enjoyment” of the rental property including the right to have guests stay overnight or for short periods of time. The landlord’s guest policy cannot deny the legal rights of the tenant.

A landlord cannot restrict, prohibit, or otherwise discriminate against guests, or limit guest stays based upon any federal, state, or local fair housing protected classes or characteristics.

A lease agreement should always include a clause detailing the landlord’s tenant guest policy and the consequences of violations of the policy. A guest policy defines “guests” and sets the rules and limitations on guest overnight stays. A guest policy, to be enforceable, must be legally compliant and clearly stated in the lease agreement that is signed by landlord and tenant.

When a landlord establishes rules on tenant guest visits, the rules should not be excessive or unreasonable and must be uniformly enforced against all tenants. A guest policy may limit the number of guests per tenant per visit, require written permission from the landlord for parties or events, and limit the number of days within a specified time period that a guest may stay at the rental property. A landlord may require a guest who has exceeded policy provisions without the landlord’s permission to submit an application for tenancy.

A guest policy should hold tenants liable for any damage caused by their guests. Tenants and their guests are required to comply with any and all laws, ordinances, rules, and restrictions as per governmental agency that affect the occupancy, use, cleanliness, and preservation of the rental premises.

Other issues that may be addressed in a guest policy include guest parking access, prohibitions against tenants providing duplicate keys, security codes and access to common areas to guests, and restrictions on use of property amenities. Standard rental policies such as being a smoke-free property, rules on noise and disturbance, and other applicable rental policies such as health and safety matters should be communicated to guests and posted on the property as warranted.

A lease clause that sets reasonable limitations on guests and overnight stays can help prevent tenants from moving in their family members or friends as their “guests.” These guests often become the full-time occupants who were never qualified under the landlord’s standard tenant screening and selection standards. Lease violations that are not cured could lead to claims of discrimination and unfair treatment by other tenants and applicants.

Answer:

Since your lease agreement specifically prohibits pets and the tenant signed that lease agreement, signifying his understanding and agreement with lease terms and conditions, the tenant by keeping a pet is in violation of his lease agreement. You should immediately serve the tenant with the appropriate written notice as per your state landlord-tenant statute to cure or quit the noted lease violation. If the tenant doesn’t comply with notice requirements within the stated time frame, you may file for eviction.

It is important for a landlord to enforce his “no pets policy” as soon as the landlord discovers a lease violation. If a landlord ignores the situation and does not notice the tenant regarding the violation, the landlord jeopardizes his position to take action at a later date. The tenant may argue that the landlord by failing to act in a timely manner waives his right to object to the tenant having a pet.

Answer:

There could potential problems regarding the conversion of funds designated as a security deposit into payment of last month’s rent.

Whether you can use the tenant’s security deposit as the last month’s rent depends upon your state statute requirements for security deposit collection, handling, and return. Whether you should allow use of the deposit as payment of rent is a business decision. Most business owners would consider this practice a risky business decision.

Security deposits are not rent. The intent of a security deposit is to protect the landlord from any damage that the tenant may have caused to the rental unit during his tenancy. Damage can be physical damage to the rental unit or grounds, or financial damage such as loss of rents.

Most states have landlord-tenant statutes on security deposit handling that specify how a security deposit may be used by the landlord. Money held as a security deposit in most states may be used to cover back rents, physical property damage, and cleaning of the property when the tenant vacates the property.

Converting security deposit funds into rent could be a risky business practice. Until the tenant actually vacates and the final inspection is done, the landlord has no way of knowing what the condition of the rental unit will be at the end of the tenancy. Damage to rental units most often occurs during tenant move-ins and move-outs.

Usually the security deposit amount is the same amount as the monthly rent. If there is damage to the unit and the landlord needs to make repairs, the repair amount is deducted from the security deposit. This will reduce the amount that can be applied as last month rent. The landlord either has to cover the shortfall himself or file a lawsuit to try to recover the money.

The tenant may not be thinking of the potential liabilities that could cause him problems. If there is damage and shortfall in the amount that can be applied to rent, the tenant is responsible for the full rent. If the tenant does not pay, he has defaulted on his lease and the landlord has a cause for action. The landlord can sue for a money judgment which will be a matter of public record. The landlord could report the delinquency to the credit bureaus which could affect the tenant’s credit rating.

It matters not if the ex-tenant has moved to another state, as long as you can locate him and have him served with the summons and complaint. The fact that he would have to appear in the court of jurisdiction for the rental property might add incentive for him to pay up. If he fails to appear and you can provide the court proof that he was served you would likely receive a default judgment. This judgment can be enforced in a court in his new state. In most states judgments accrue interest at a significant rate. The judgment should appear in credit reports obtained by other landlords when he seeks other rental housing or when attempting to obtain financing for any need, forcing him to pay both the principal and accrued interest at a future date. Finally, judgments can be renewed.

Answer:

Most states have landlord-tenant statutes that regulate many of the issues of rents including raising rents, when rent is due, where rent is due, late fees, and grace periods. Rent is the legal obligation of the tenant in exchange for the use of the landlord’s rental property. Timely payment of rent is part of the contractual agreement between landlord and tenant. Late or missed rental payments by the tenant are contract defaults.

The landlord can exercise his legal right to remedy tenant default by serving proper legal notice of the default. If the default is not cured, the landlord can file an unlawful detainer action. Many times the late or missed rent payment is an oversight or a temporary issue that the tenant can quickly remedy. A landlord must address rent issues in a timely manner to remedy tenant defaults, protect against future risk, and help reduce operational costs. Accordingly most landlords include a clause in their lease agreement and as part of the rent rules that clearly details the issue of late rent and the consequences of default .By using financial motivations the landlord seeks to provide adequate incentive to the tenant to pay rent on time. Landlords should always enforce their rental policies in a legal, consistent, non-discriminatory manner.

The provision for a landlord to charge a late fee when the tenant has defaulted on timely payment of his rent may or may not be specifically addressed by statute. If addressed by statute, there are usually restrictions on the dollar amount or percentage amount that can be charged per month or per rental period; whether a daily late fee is permitted; and a maximum total amount of late fees that can be charged. In a few states the landlord must notify the tenant of the landlord’s intent to impose late charges. Some states may also specify a grace period, a specified number of days the landlord must wait before charging a late fee. Some municipality or rent-control ordinances may also govern late fees and grace periods.

In general, for a late fee to be legally enforceable, the provision for late fees must be clearly stated in writing in the landlord’s lease agreement. The amount of late fees should be, as detailed in in one state’s statute, “a reasonable estimate of uncertain damages to the landlord that are incapable of precise calculation.” A late fee is a form of liquidated damages, usually expressed as a fixed amount that approximates the damages a landlord will suffer if the rent is late. Due to the difficulty in determining actual loss by the landlord, a specific fixed amount for late fees is stated in the lease agreement. All parties to the contract should understand and agree to the late fee policy. Late fees that are excessive, greatly exceeding potential actual damages, could legally be considered penalties and lease agreement clauses on late fees may be ruled unenforceable by the courts in some states.

The late fee policy should clearly state the fee amount, when the late fee will be charged, and when the late fee is due.

How can a landlord determine if his late fees policy is reasonable and fair? The first step is due diligence to understand his state’s landlord-tenant statute on the issue. If the statute is clear on what amount of late fees can be charged, when late fees take effect, what, if any, notifications must be given to tenant, and how the payment must be applied, the landlord has his late fee policy established by statute. However, before setting his own late fee policy, the landlord may wish to contact other landlords of similar properties in the local area to ask about their late fees policy and amounts of late fees charged to their tenants. As a business necessity, a landlord may need to consult with an attorney experienced in landlord-tenant law and familiar with the local courts of jurisdiction for an opinion on a reasonable and fair late fees policy. What a court considers to be an unreasonable and excessive late fee may be dependent on the jurisdiction where the property is located. Some landlords use a percentage of the monthly rental amount as a late fee, typically on the average, 4 to 5 percent of the monthly rental amount. Other landlords prefer to set a fixed late rent fee, while others prefer a daily fee until a maximum limit is reached.

If the state statutes do not specifically address the issue of late fees, a landlord is obligated under general legal principles of contract law to set late fees to be reasonable and fair. Excessive amounts are subject to challenge by the tenant and could be viewed unfavorably in a court action.

How should a landlord apply a tenant’s rent payment? If the tenant pays the rent without including the amount of any late charges due, the payment should be applied first to the late charges and then to the earliest delinquent balance before the remainder is applied to the current month’s rent. A landlord can always evict for unpaid rent, while some judges may not allow eviction for unpaid late charges.

If late charges are waived for some reason, written notice of the waiver should be provided to the tenant with a statement that special circumstances were taken into consideration and that the subject waiver does not constitute waiver of any future late charges.

Grace Period

A grace period is a period during which late charges will not be incurred. While some states have requirements for a legal grace period before the landlord is allowed to serve a termination notice or charge late fees, in general, grace periods are provided because of the landlord’s generosity. Typical voluntary grace periods vary from 3 to 5 days.

Landlords are within their legal rights to insist that rent be paid on time and should take every opportunity to emphasize the importance of paying the rent on or before the due date. Tenants may mistakenly think that as long as they pay rent within the grace period they have paid their rent on time. Absent a state law regarding the issue, grace periods need not be considered a regular automatic extension of the rent due date. As an example, a lease clause could state that the grace period is an automatic extension that can only be utilized a certain number of times during the lease and that late charges will be incurred for payments after the due date once the allowance has been used. If a grace period is offered by a landlord, the landlord should clearly state in writing what constitutes the grace period, i.e., whether calendar days or business days and the specified time of day for receipt of payment, to make sure that landlord and tenant have the same understanding.

Washington, D. C.: The Rental Housing Late Fee Fairness Amendment Act of 2016

As advised many times in landlord help articles, landlords must act in their own best interests by conducting all due diligence on landlord-tenant issues and regulations. Keeping current with applicable federal, state, and local laws is a business necessity. As an example, landlords in the Washington, D.C. area now must comply with a new law that caps late fees and creates a grace period for tenants who pay late.

Prior to the passage of the “Rental Housing Late Fee Fairness Amendment Act of 2016”, a landlord in D. C. had no statutory restrictions on setting amounts for late fees and was not required to offer a grace period to tenants making late rent payments.

The Rental Housing Late Fee Fairness Amendment Act of 2016 provides:

• A housing provider may charge a late fee of no more than 5% of the full amount of rent due by a tenant.
• A housing provider may only charge a late fee:

1)    if the written lease agreement between the housing provider and the tenant informs the tenant of the maximum amount of the late fee that may be charged and

2)    if the tenant has not paid the full amount of rent within 5 days, or any longer grace period that may be provided in the lease, after the day the rent payment is due.

• A housing provider shall not:

1)    charge interest on a late fee;

2)    deduct any amount of a late fee from a subsequent rent payment;

3)    impose a late fee more than one time on each late payment;

4)     evict a tenant on the basis of the nonpayment of a late fee; or

5)    impose a late fee on a tenant for the late payment or nonpayment of any portion of the rent for which a rent subsidy provider, rather that the tenant, is responsible for paying.

Additionally after the grace period established pursuant to the provisions shown above, a housing provider may issue a tenant an invoice to be paid within 30 days after the date of issuance for any lawfully imposed late fees. If the tenant does not pay the late fee within the 30-day period, the housing provider may deduct from a tenant’s security deposit, at the end of the tenancy, any unpaid, lawfully imposed late fees, along with any other amounts lawfully due the housing provider.

A housing provider who knowingly or willfully violates provisions of the Act regarding a prohibited eviction for the nonpayment of a late fee, shall be liable to the tenant for the amount by which the late fee exceeds the allowable late fee, or for three times that amount in the event of bad faith, and shall be subject to a civil fine of at least $100 and not more than $5,000 for each violation.

A landlord’s policy of late fees and/or grace period may not motivate some tenants to a more timely rent payment. If defaults do occur, a landlord should be prepared to address the issue immediately with appropriate measures. Landlords who conduct adequate tenant screenings such as credit reports, eviction history, previous landlord references, and employment/income verifications, should be able to detect a history or pattern of late payments or other behaviors that could be indications of credit risk. A landlord should ensure his tenant qualification standards are adequate for business protection and that applicants are screened and selected to those standards.

Answer:

You are right to be concerned about issues with holding deposits. Misunderstandings and legal hassles are most often the reasons that cause problems for landlords and many landlords refuse to consider holding deposits.

However with careful consideration of issues and adequate documentation, a holding deposit can sometimes be useful in filling vacancies. If the rental market is tight, applicants may offer a holding deposit to take the rental unit off the market until the applicant’s screening and verification is complete. At other times, a holding deposit may seem appropriate when an applicant appears committed to the rental, but must make arrangements for the move-in funds. It is often, in a slow rental market, better to utilize a holding deposit rather than lower qualifying standards or reduce the rent.

As you know, a holding deposit is not a security deposit, but is to compensate the landlord for damages suffered for holding a unit off the market in the event that the applicant fails to meet screening qualifications or rescinds his/her agreement to rent the unit.

In summary, landlords must follow any laws of their states and they should use good judgment and be fair in their holding deposit policy. An applicant whose holding deposit is retained without adequate justification may well have a cause of action for damages against the landlord which can result in more time and expense than the deposit was worth.

Answer:

For the landlord’s protection, holding deposits should always be in cash, cashier’s check, or money order and for the protection of both parties there should always be a written agreement detailing the conditions related to the deposit even if not required by law.

When the landlord holds the rental unit for an applicant, it should be considered off the market and unavailable to other qualified prospective tenants who may have to be turned away. If the applicant later changes his/her mind, the landlord may have suffered financial harm. In such a case, the landlord is justified in retaining all or part of the holding deposit within the limits allowed by state law. However, be sure that this scenario is discussed in a signed agreement.

The written holding deposit agreement should be in accordance with any applicable state law and unambiguously cover the following issues:

• The address of the rental unit,
• The names of landlord and applicant,
• A clear statement that the deposit is a “holding deposit” rather than a security deposit.
• The amount of the deposit,
• The length of time (including exact ending date/time) the landlord is willing to hold the rental, taking into account the size of the deposit and other qualifying information,
• The basic terms of the lease agreement,
• The conditions under which the landlord will rent the unit to the applicant – e.g., verification of identity, a fully completed application form, satisfactory results on all applicable screening reports, verification of employment, and full payment of the security deposit and first month’s rent by the end of the holding period,
• What will happen to the deposit if the applicant signs a lease agreement – usually, that the full holding deposit will be credited to the security deposit,
• What will happen if the applicant decides not to rent the unit before being notified whether or not his/her application has yet been approved,
• What will happen to the holding deposit if the applicant fails to pass screening – usually the full deposit should be returned if the failure is evident within a couple of days after the landlord has accepted the holding deposit – and
• What will happen to the holding deposit if the applicant defaults on the holding agreement – specifically, how much the landlord will retain, this being in accordance with any applicable state law, and when and how the portion not being retained by the landlord will be returned to the applicant. It is best to include a short discussion within the agreement regarding reasons why the full deposit will not be returned – e.g., compensation to the landlord for financial damages.

Some states that cover holding deposits by statute specifically allow a landlord to retain an amount related to the landlord’s cost of holding the unit. This might include the costs of additional advertising, prorated rent for the holding period, and perhaps a reasonable charge for the time related to paper work and inconvenience to the landlord. Holding a larger amount puts the landlord at risk for a lawsuit. Some states specifically require that there be a written contract that states the terms and provides a receipt for the amount of the deposit. The receipt can be included within the agreement, of which a copy must be provided to the applicant.

The amount of the holding deposit should be reasonably related to the rent of the unit, the holding period, and the potential inability of some applicants to immediately put up significant deposit funds in addition to application and/or screening fees.

In most states a landlord can take holding deposits. However, considerable care must be exercised when taking them.

Although holding deposits may be legal in your state, they can often lead to misunderstandings or even legal hassles. A major problem is that most states do not cover the subject adequately in their statutes, if at all, and it is often unclear regarding how much of the deposit may be retained by the landlord in the event screening results are unsatisfactory or the applicant cannot come up with the necessary funds or simply changes his mind about wanting the unit.

Some states that cover holding deposits by statute specifically allow a landlord to retain an amount related to the landlord’s cost of holding the unit. This might include the costs of additional advertising, prorated rent for the holding period, and perhaps a reasonable charge for the time related to paper work and inconvenience to the landlord. Holding a larger amount puts the landlord at risk for a lawsuit. Some states specifically require that there be a written contract that states the terms and provides a receipt for the amount.

For the landlord’s protection, holding deposits should always be in cash, cashier’s check, or money order and, even if not required by law, for the protection of both parties there should always be a written agreement detailing the conditions related to the deposit.

Answer:

Your question needs clarification regarding specific details not provided in your posting. A holding deposit is associated with a potential tenant, the applicant, who has requested the landlord take the rental unit off the market until the applicant qualifies or otherwise fulfills the landlord terms and conditions for tenancy. A tenant is the applicant who has executed terms of the lease agreement. Although you call the person a tenant, you do not explicitly state that the lease has been fully executed. It is not clear from your information whether the deposit was a security deposit under terms of the lease agreement or was instead actually a separate “holding deposit” for which there should have some other written agreement.

If you and the person executed a written lease agreement, you can hold him to the terms of the lease. However, if the person chooses to break the lease, you can in almost all states only hold him responsible for the rent until a new tenant begins paying rent and you must exert reasonable effort toward finding a new tenant. You can probably also hold the person responsible for paying extra expense related to again having to market the property, including advertising and leasing commissions.

If it is an oral lease and there is no written lease agreement, it would be your word against his as to the exact terms of said agreement unless there were witnesses on one or both sides.

If the deposit was a holding deposit you must abide by the terms of the holding deposit agreement. Again, if there was no such written agreement, it could be difficult to prove the terms of the deal.

What is rent control?

Answer

Only a few jurisdictions in only a very few states have local rent control ordinances that restrict  the amount of rent that a landlord may charge and limit the reasons that a landlord may bring  eviction. There are many variables in each jurisdiction’s rent control laws and landlords will need to conduct due diligence to understand and comply with local regulations. Typically, rent control ordinances set a base rent amount for a subject unit that takes into account such factors as the building’s age, size of the unit, upkeep and operational expenses, how long the tenant has been in residency, the amount of rent previous to the rent control administration, inflation rates, and market supply and demand.