If the landlord returns the deposit in full or pays the tenant the disputed portion of the deposit within seven days of the landlord's receipt of the letter, the matter is resolved. If the landlord does not return the deposit within the seven days, the tenant may sue the landlord to obtain the return of the security deposit. The tenant may request three times the amount of the deposit that has been withheld plus reasonable attorney's fees and court costs. In court, the landlord may counterclaim against the tenant for any damages caused by the tenant. Under most leases, the losing party in a court action is responsible to pay attorney's fees for the winning party .
Mediation is often faster, less stressful, and cheaper than going to court.
Trained, neutral mediators will help to facilitate a negotiation process that often results in agreements that both parties feel are fair and that are tailored to meet the needs of the individuals involved. The landlord may divide the security deposit return equally among the tenants or may send the entire return amount to one tenant. It is helpful if the tenants agree in advance how the security deposit or its remaining balance is to be disbursed. A signed agreement to this effect should be presented to the landlord. Samples of Roommate Agreements are available through the Community Mediation Service.