(2) [Editor's note: This version of subsection (2) is effective January 1, 2026.]
If a landlord fails to comply with the requirements of this section or otherwise
wrongfully withholds a security deposit or any portion of a security deposit, the
landlord forfeits the landlord's rights to withhold any portion of the security deposit
under this section.
(2.5) [Editor's note: Subsection (2.5) is effective January 1, 2026.] A landlord
is deemed to have wrongfully withheld a security deposit or any portion of it in
violation of this section if the landlord:
(a) Fails to timely provide the written statement required by subsection (1) of
this section and all relevant documentation required by subsection (8) of this
section;
(b) Provides a written statement that fails to list the exact reasons for the
retention of any portion of the security deposit;
(c) Fails to return the difference between any sum deposited and the amount
retained within the time specified in subsection (1) of this section; or
(d) Retains a security deposit or any portion of it in bad faith as described in
subsection (3.5) of this section.
(3) [Editor's note: This version of subsection (3) is effective until January 1,
2026.]
(a) The willful retention of a security deposit in violation of this section shall render
a landlord liable for treble the amount of that portion of the security deposit
wrongfully withheld from the tenant, together with reasonable attorney fees and
court costs; except that the tenant has the obligation to give notice to the landlord
of his intention to file legal proceedings a minimum of seven days prior to filing said
action.