What's the law in regards to deposits?

[landy]

If a tenant has paid a security deposit to the landlord at the start of a tenancy, this should be returned if the property is left in good condition and there are no arrears.

If the landlord refuses to return the deposit or makes deductions, the tenant should check the terms of the tenancy agreement to see what the deposit was supposed to cover. In cases of damage to property, it is often cheaper for the tenant to make good the damage before the landlord comes to inspect the property. The small claims procedure in the county court may be the only way to get the deposit back if a landlord continues to refuse to reimburse it.

A tenant has a legal right to know their landlord’s identity. This can be obtained by writing to the person who collects the rent, asking for the landlord’s full name and address. The tenant should send this letter by recorded delivery and keep a copy. It is a criminal offence not to reply to this letter within 21 days. The tenant can then inform the Tenancy Relations Officer at the local authority, who can prosecute the person who has failed to provide the information.

[elklaw]

Typically, how a deposit is dealt with will depend on state or local law and the terms of the lease. Sometimes, a deposit may be an advance on the last month's rent and also to be used as a way of paying for damages. If the deposit is withheld, the landlord, within 30 days or the time frame set forth in state and/or local law, needs to give the tenant a damages receipt to show how the deposit was applied and if there is any remaining, that amount returned to the tenant.