Rent Escrow: What is it?

Rent escrow is a tool that is used when a landlord fails to make necessary repairs that are required for the health and safety of the tenant. The tenant, if the landlord does nothing about the conditions, can pay their rent money into something called a rent escrow account which can be set up through the district court in your county. Basically, the rent money that would have been paid to the landlord, goes into the rent escrow account and is to be given to the landlord after the problems with the unit are remedied.

A landlord must be given written notice before a tenant utilizes an escrow account and needs to be given some time to abate the problems. Additionally, a government agency giving the landlord notice is sufficient to show that the landlord was aware of the problem. If the landlord does nothing, then the court can set up an escrow account.

Problems such as lack of heating or air conditioning, lead paint, or rodent infestation are serious and potentially dangerous conditions that can warrant an escrow account being used. Rent escrow is not meant to be used for small problems such as small cracks in the floor or ceiling which makes the unit less attractive. Aesthetic concerns are not going to be sufficient for a rent escrow to be used.

A court hearing will be scheduled to give both the landlord and tenant the opportunity to present their side of the story. If a court deems that a rent escrow account is appropriate, the court will set up a method for the tenant to pay their rent to the court's escrow account until the problems are abated with the unit. Many times, tenants pay several month's worth of rent to the escrow account.

Once the problems are fixed, the money from the escrow account is given to the landlord as rent. If the problems are not fixed, the tenant needs to keep paying their rent into that account. Failure to do so can lead to the landlord starting eviction proceedings.

If your landlord is allowing dangerous conditions to remain unfixed, call The Law Office of Adina S. Katz for help. We will fight for you. No one should have to live in a unit with substandard conditions. Give us a call at 240-606-4591 today.

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