Can a landlord keep my deposit if I never moved in?

Question

I was going to move into an apartment. I landlord had not finished getting the apt ready. I gave him $1500 to hold it. I never singed anything or had possession of the apt. The next day, after several conversation with the landlord I decided against getting the apartment ad I told him I no longer want it.  However he had already cashed the $1500 check and is now telling me he will not return my deposit until he finds someone else to rent it. Can he legally keep my money?

James L. Arrasmith · Answer

Based on California law, the landlord cannot legally keep your $1500 if no rental agreement was signed and you never took possession of the apartment. This type of payment is considered a security deposit or holding fee, which must be refunded if no formal agreement was established. 
 
The landlord's claim that they'll hold the money until finding another tenant is not legally valid. Under California Civil Code Section 1950.5, security deposits must be returned within 21 days after the tenant surrenders the property - but in your case, since you never actually rented or occupied the unit, the landlord should return your money promptly. 
 
You can request your refund in writing, keeping copies of all correspondence. If the landlord refuses to return your money, you can file a claim in small claims court, where you would likely prevail since there was no binding contract. You should also report this situation to your local housing authority or tenant rights organization, as this practice may violate state rental laws.

Q: Can a landlord keep my deposit if I never moved in?