(b) Except as provided in subsection (3.5)(a)(IV) of this section, a landlord has
actual cause to retain reasonable amounts from the security deposit only for:
(I) Nonpayment of rent;
(II) Nonpayment of utility charges;
(III) Nonpayment of other lawful charges listed in the lease; or
(IV) Necessary repair work for damage or defective conditions that exceed
normal wear and tear and did not preexist the tenancy.
(1.5) [Editor's note: Subsection (1.5) is effective January 1, 2026.] Upon a
landlord's or tenant's request, if reasonable and practicable, the landlord and
tenant shall conduct a walk-through inspection, either in person or via a
telecommunication-assisted interactive walk-through, of the dwelling unit to
identify in writing any damage or defective conditions that are beyond normal wear
and tear and that did not preexist the tenancy. The landlord shall provide a walk-through inspection at a tenant's request, at a time that is mutually convenient to
the parties, before the termination of the lease or the surrender of the premises,
and after the tenant has had the opportunity to remove furniture.
(2) [Editor's note: This version of subsection (2) is effective until January 1,
2026.] The failure of a landlord to provide a written statement within the required
time specified in subsection (1) of this section shall work a forfeiture of all his rights
to withhold any portion of the security deposit under this section.