My question involves landlord-tenant law in the State of: California
My two roommates and I moved out of our rental property (a house rented by the homeowner) about a month ago. One of those roommates (we'll call him Joe) did not pay nearly as much as myself (T) and our other roommate (Bill) as far as monthly rent, security deposit and bills are concerned.
I'm curious what CA law says about how the landlord must return the security deposit. We paid for two month's rent (1st and last) plus our security deposit to move in. Total move in costs were about 5700 and the entire amount was paid by Bill. It was easier to deal with and he had the money at the time whereas myself and Joe were a little short.
So far, our landlord gave the last months rent, in full, back to Bill (the roommate who paid the initial 5700 deposit). But she sent the remaining of our security deposit to Joe, who has not paid for the entire amount he was sent. She sent him a final check of 1500 and at best he only paid up to 1000 to live with us (1st months rent and some security, but NOT the last months rent). He has received a check with 500 more than he's owed, and he refuses to return the 500 that belongs to Bill.
I thought state law said that our landlord must return the deposit in the form she received it and to the person who delivered it. Is this incorrect? What is CA state law for a landlord to return a security deposit? We showed her bank statements for Bill showing that the money came from his account and ensured her that we would return Joe his portions once we received them.