H. B. 4321


(By Delegate Higgins)
[Introduced February 2, 1994; referred to the
Committee on the Judiciary.]




A BILL to amend article six, chapter thirty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section five-a, relating to landlord and tenant generally; providing for management of required security deposits; and prohibiting retention of any part of security deposit for cleaning expenses.
Be it enacted by the Legislature of West Virginia:

That article six, chapter thirty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section five-a, to read as follows:
ARTICLE 6. LANDLORD AND TENANT.

§ 37 - 6 - 5a. Security deposits.

If a rental agreement requires the tenant to provide any deposit to the landlord to be held for the term of the rental agreement, or any part thereof, the deposit shall be considered a security deposit. A landlord may not require a security deposit in excess of one month's rent on contracts for more than one year.

A security deposit shall be placed in an escrow bank account by the landlord and shall not be used in the operation of any business by the landlord. The security deposit shall be held and administered for the benefit of the tenant, and the tenant's claim to the money shall be prior to that of any creditor of the landlord, including, but not limited to, a trustee in bankruptcy, even if the money is commingled.
The purpose of the security deposit is: (a) To reimburse the landlord for actual damages, above normal wear and tear which can be corrected by painting or ordinary cleaning, caused to the premises by the tenant; (b) to pay the landlord for all rental arrearage due under the rental agreement, including rental due for premature termination of the rental agreement by the tenant; and (c) to reimburse the landlord for all reasonable expenses incurred in renovating and reletting the premises caused by premature termination of the rental agreement by the tenant which shall not exceed one month's rent.
The security deposit may not be applied by the landlord to the cost of ordinary cleaning or repair of ordinary wear and tear.



NOTE: The purpose of this bill is to prohibit landlords who require a security deposit from using a portion of the security deposit for cleaning or for repair of ordinary wear and tear.
This section is new; therefore, strike-throughs and underscoring have been omitted.