(5)(a) Except as
otherwise provided in this subsection, a landlord may not change the rental
agreement to require the tenant to pay a new or increased security deposit
during the first year after the tenancy has begun. Subject to subsection (4) of
this section, the landlord may require an additional deposit if the landlord
and tenant agree to modify the terms and conditions of the rental agreement to
permit a pet or for other cause and the additional deposit relates to the
modification. This paragraph does not prevent a landlord from collecting a
security deposit that an initial rental agreement provided for but that
remained unpaid at the time the tenancy began.
(b) If a landlord
requires a new or increased security deposit after the first year of the
tenancy, the landlord shall allow the tenant at least three months to pay the
new or increased deposit.
(6) The landlord
may claim all or part of the security deposit only if the landlord required the
security deposit for any or all of the purposes specified in subsection (7) of
this section.
(7)(a) The
landlord may claim from the security deposit only the amount reasonably
necessary:
(A) To remedy the
tenant’s defaults in the performance of the rental agreement including, but not
limited to, unpaid rent; and
(B) To repair damages
to the premises caused by the tenant, not including ordinary wear and tear.
(b) A landlord is
not required to repair damage caused by the tenant in order for the landlord to
claim against the deposit for the cost to make the repair. Any labor costs the
landlord assesses under this subsection for cleaning or repairs must be based
on a reasonable hourly rate. The landlord may charge a reasonable hourly rate
for the landlord’s own performance of cleaning or repair work.