To repeal sections 441.020, 441.040, 441.060, 441.070, 441.130, 534.020, 534.030, 534.330, 534.380, 535.040, 535.110 and 535.300, RSMo 1994, relating to landlord and tenant law, and to enact in lieu thereof twenty-nine new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Sections 441.020, 441.040, 441.060, 441.070, 441.130, 534.020, 534.030, 534.330, 534.380, 535.040, 535.110 and 535.300, RSMo 1994, are repealed and twenty-nine new sections enacted in lieu thereof, to be known as sections 441.020, 441.040, 441.060, 441.070, 441.075, 441.077, 441.130, 441.231, 441.232, 441.233, 441.234, 441.236, 441.237, 441.238, 441.239, 534.020, 534.030, 534.330, 534.335, 534.345, 534.355, 534.380, 534.600, 535.035, 535.040, 535.110, 535.155, 535.165 and 535.300, to read as follows:

     441.020. 1. Whenever any lessee of any house or building shall suffer any prohibited gaming table, bank or device to be set up or be kept or used therein, for the purpose of gaming, or keeping in the same a bawdyhouse, brothel or common gaming house, the lease or agreement for letting such house or building shall become void, and the lessor may enter on the premises so let, and shall have the same remedies for the recovery thereof as in the case of a tenant holding over his term.

     2. Whenever any lessee of any house, apartment, or building or someone on the premises with the consent of the tenant engages in or allows the illegal possession, sale, or distribution of controlled substances on the rental property the landlord may terminate the rental agreement upon at least five days' written notice specifying such conduct. However, except as provided in subsection 3 of this section, said termination shall not be effective if this activity is conducted by a person on the premises other than the tenant and, subsequent to the delivery of the notice but prior to the landlord's filing of a court action to enforce said notice, the tenant takes at least one of the following measures against said person and delivers written proof of same to the landlord:

     (1) The tenant seeks a protective order, restraining order, order to vacate the premises, or other similar relief which would apply to the illegal activity;

     (2) The tenant reports the illegal activity to a law enforcement agency or the county or prosecuting attorney in an effort to initiate a criminal action against the person conducting the activity;

     (3) The tenant writes a letter to the person conducting the activity not allowing the person to return to the premises. The tenant must also send a copy of the letter to the law enforcement agency having jurisdiction where the premises are located. If the offending person has returned after an initial letter, one of the actions outlined in subdivision (1) or (2) of this subsection must be taken.

     3. If a person other than the tenant who is on the premises with the consent of the tenant conducts at least two illegal acts involving the possession, sale, or distribution of controlled substances on the premises during any six-month period, tenant's subsequent actions as delineated in subsection 2 of this section shall not be sufficient cause to make ineffective the landlord's termination of the rental agreement.

     441.040. If any tenant shall violate the provisions of section 441.030, the landlord, or person holding under [him] the landlord, after giving ten days' written notice to quit possession which includes the reasons therefor, shall have a right to [reenter the premises and take possession thereof, or to oust the tenant, subtenant or undertenant by the proper procedure.] pursue proper legal procedures to evict the tenant. Provided, however, that any tenant who receives a local, state, or federal rent subsidy shall be entitled to written notice that the tenancy shall be terminated not sooner than thirty days from the date the rent payment next becomes due. Any right to a hearing provided by federal law shall not be abrogated by this section.

     441.060. 1. Except as otherwise provided herein and by law, a tenancy at will or by sufferance, or for less than one year, may be terminated by [the person entitled to the possession by giving one month's notice, in writing, to the person in possession, requiring him to remove.] either the landlord or tenant by providing written notice to the other party that the tenancy shall be terminated not sooner than thirty days from the date the rent payment next becomes due.

     2. When a person occupies and has an ownership interest in a mobile home and is leasing the land or the lot upon which the mobile home is located, a tenancy for less than one year may be terminated by the landlord by giving written notice to the tenant that the tenancy shall terminate not sooner than sixty days from the date the rent payment next becomes due, notwithstanding any written lease provision to the contrary.

     [2.] 3. Except as otherwise provided by law, all contracts or agreements for the leasing, renting or occupation of stores, shops, houses, tenements or other buildings in cities, counties, towns, or villages, and of stores, shops, houses, tenements or other buildings except when such leasing, renting or occupation is as tenant of real estate used or rented for agricultural purposes, other than garden purposes, not made in writing[,] and signed by the parties thereto, or their agents, shall be held and taken to be tenancies from month to month, and all such tenancies may be terminated by either party thereto, or his [agent, giving to the other party, or his agent, one month's notice, in writing, of his intention to terminate such tenancy] or her agent, only in accordance with subsection 1 or 2 of this section.

     441.070. No notice to quit shall be necessary from or to a tenant whose term is to end at a certain time, or when, by special written agreement, notice is dispensed with.

     441.075. Any property of a tenant remaining in or on the premises, after the tenant abandons the premises, may be removed or disposed of by the landlord without liability to tenant. The premises shall be deemed abandoned and the lease terminated if:

     (1) The landlord has a reasonable belief that the tenant has vacated the premises and intends not to return;

     (2) The rent is due and has been unpaid for sixty days;

     (3) The landlord posts written notice on the premises and mails to the last known address of the tenant by both first class mail and certified mail, return receipt requested, a notice of landlord's belief of abandonment in the form stated in section 441.077; and

     (4) The tenant fails to respond in writing to the landlord's notice, stating his or her intention not to abandon the premises. Said response must be hand delivered to the landlord or mailed with a postmark date within ten days after the landlord has posted and mailed all notices required in subdivision (3) of this section. Should the landlord not receive any response from the tenant fifteen days after the landlord has complied with the landlord's notice requirements, the landlord may presume a lack of tenant response.

     441.077. The notice of belief of abandonment shall be in substantially the following form:

NOTICE OF BELIEF THAT YOU HAVE MOVED OUT

AND ABANDONED THE PROPERTY

To:.............................................................

(Name of lessee/tenant)

................................................................

(Address of lessee/tenant)

     This notice is given pursuant to section 441.075 of the Missouri Statutes concerning the real property leased to you at ............. (state location of property by address or other sufficient description). The rent on this property has been due and unpaid for sixty consecutive days and the lessor/landlord believes that you have moved out and abandoned the property.

     The real property and any personal property remaining on the premises will be deemed abandoned and your lease will terminate on ................. (here insert a date not less than fifteen days after the landlord has completed all notice requirements).

     THIS MEANS THAT ON THAT DATE, YOUR LANDLORD CAN TAKE POSSESSION OF YOUR DWELLING AND THROW OUT YOUR BELONGINGS.

     You can stop this from occurring by giving a letter to your landlord, or mailing it to your landlord with a postmark date, on or before ................. (here insert a date ten days after the date landlord completed all notice requirements). Your letter must say that you have not moved out or abandoned your dwelling at ................................................... (state location of property by address or other sufficient description). Your letter should also give an address where you can be found.

     You are required to pay the rent due and unpaid for these premises as required by your agreement with your landlord and failure to do so can lead to a court proceeding being brought against you.

Dated:............ ......................................

(Signature of lessor/landlord)

......................................

(Type or print name of lessor/landlord

......................................

(Address to which lessee/tenant is to

bring or mail letter to landlord).

     441.130. If the owner or holder [alien or assign his] of lands, tenements, an estate or a lease term alienates or assigns his or her lands, tenement, estate or term, or the rent thereafter to fall due thereon, his or her alienee or assignee may recover such rent upon presenting the prospective tenant, renter, or lessor with a valid written instrument or deed.

     441.231. 1. A landlord of residential property shall:

     (1) Comply, after written or actual notice, with the requirements of applicable building and housing codes materially affecting health and safety; and

     (2) Make all repairs and do whatever is necessary, after written or actual notice, to put and keep the premises in a fit and habitable condition, as defined by the following:

     (a) Keep all common areas of the premises in a clean condition;

     (b) Maintain in good and safe working condition all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, supplied or required to be supplied by the landlord;

     (c) Unless otherwise provided by local or municipal ordinance, provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of the dwelling unit and arrange for their removal;

     (d) Supply running water and reasonable amounts of hot water at all times and reasonable heat between October first and May first except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct public utility connection where a public utility connection is necessary;

     (e) Eliminate roaches, rats, or other vermin;

     (f) Keep all areas of the premises in a safe condition by providing and maintaining adequate locks and keys and taking protective measures guarding the entire premises and the areas, particularly those common areas, under the landlord's control against the perpetration of criminal activity; and

     (g) Protect the tenant's right to freedom from interference with tenant's tenancy, and acts or omissions, by the landlord or other tenants, that impair the character and value of the leased premises.

     2. If the duty imposed by subdivision (1) of subsection 1 of this section is greater than any duty imposed by subdivision (2) of subsection 1 of this section, the landlord's duty shall be determined by reference to subdivision (1) of subsection 1 of this section.

     3. The landlord and tenant of a single family residence may agree in writing that the tenant perform property maintenance activities such as mowing the lawn, removing snow, raking and removing leaves, storing and disposing trash, and trimming shrubs.

     4. The landlord and tenant of any dwelling unit other than a single family residence may agree that the tenant is to perform specified repairs, maintenance tasks, alterations or remodeling, only if:

     (1) The agreement of the parties is entered into in good faith and not for the purpose of evading the obligations of the landlord and is set forth in a separate writing signed by the parties and supported by adequate consideration;

     (2) The work is not necessary to cure noncompliance with subdivision (1) of subsection 1 of this section; and

     (3) The agreement does not diminish or affect the obligation of the landlord to other tenants in the premises.

     5. The landlord may not treat performance of the separate agreement described in subsection 4 of this section as a condition to any obligation or performance of any rental agreement.

     6. Neither the landlord nor the tenant may waive the obligation for maintenance of the premises delineated in this section.

     441.232. A tenant may bring an action in the circuit court in the circuit in which the property is located for breach by the landlord of the provisions of section 441.231. The relief which is available to the tenant in this action is declaring a forfeiture of the lease, injunctive relief and actual damages sustained by the tenant. The above recovery shall not limit the tenant's right to seek additional remedies under law.

     441.233. In order to maintain the public peace, a possessor of property shall be evicted, dispossessed or otherwise constructively or actually removed from the property only in accordance with a court order under Missouri law.

     441.234. 1. If there exists a condition on residential premises which detrimentally affects the habitability, sanitation or security of the premises, and the condition constitutes a violation of a local municipal housing or building code, and the reasonable cost to correct the condition is less than three hundred dollars, or one-half of the periodic rent, whichever is greater, the tenant may notify the landlord of tenant's intention to correct the condition at the landlord's expense. If the landlord fails to correct the condition within fourteen days after being notified by the tenant in writing or as promptly as required in case of an emergency, the tenant may cause the work to be done in a workmanlike manner and, after submitting to the landlord an itemized statement, including receipts, deduct from the rent the actual and reasonable cost of the work, as documented by the receipts, not exceeding the amount specified in this subsection; provided, however, if the landlord provides to the tenant within said notice period a written statement disputing the necessity of the repair, then the tenant may not deduct the cost of the repair from the rent without securing, before the repair is performed, a written certification from the local municipality or government entity that the condition requiring repair constitutes a violation of the local municipal housing or building code. In the event of such certification the tenant may cause the work to be done as described herein if the landlord fails to correct the condition within fourteen days after the date of said certification or the date of the notice from the tenant, whichever is later, or as promptly as required in case of an emergency. The tenant's remedy provided herein is not exclusive of any other remedies which may be available to the tenant under law. No lease agreement shall contain a waiver of the rights described in this section.

     2. A tenant may not repair at the landlord's expense if the condition was caused by the deliberate or negligent act or omission of the tenant, a member of tenant's family, or other person on the premises with tenant's consent. A tenant may not deduct in aggregate more than the amount of three months' rent during any twelve-month period.

     441.236. A tenant shall:

     (1) Comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety;

     (2) Keep that part of the premises that the tenant occupies and uses as clean and safe as the condition of the premises permit;

     (3) Dispose from the tenant's dwelling unit all ashes, garbage, rubbish, and other waste in a clean and safe manner;

     (4) Keep all plumbing fixtures in the dwelling unit or used by the tenant as clear as their condition permits;

     (5) Use in a reasonable manner, under the circumstances, all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances including elevators in the premises; and

     (6) Not deliberately or negligently destroy, deface, damage, impair, or remove any part of the premises or knowingly permit any person to do so.

     441.237. 1. A tenant shall not unreasonably withhold consent to the landlord to enter into the dwelling unit in order to inspect the premises for making necessary or agreed repairs, decorations, alterations, or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

     2. A landlord may enter the dwelling unit without consent of the tenant in case of an emergency, defined as an unforeseen combination of circumstances that calls for immediate action.

     3. A landlord shall not abuse the right of access or use it to harass the tenant. Except in case of an emergency or unless it is impracticable to do so, the landlord shall give the tenant at least forty-eight-hours notice of landlord's intent to enter and may enter only at reasonable times.

     4. A landlord has no other right of access except:

     (1) Pursuant to court order; or

     (2) Unless the tenant has abandoned the premises as defined in section 441.075, or has voluntarily surrendered the premises.

     441.238. Any action whereby the landlord enters the property of a tenant in order to seize the tenant's goods or chattels in a nonjudicial proceeding to satisfy an arrears of rent shall constitute distress and distraint. Distress and distraint are prohibited and owners of rental property shall have security interests or liens on the personal property of their tenants only in accordance with Missouri law.

     441.239. A landlord seeking damages from a defaulting tenant is under a duty to mitigate damages by making a reasonable effort to relet the premises when vacated by the tenant.

     534.020. If any person shall enter upon or into any lands, tenements or other possessions, with force or strong hand, or with weapons, or by breaking open the doors or windows or other parts of a house, whether any person be in it or not, or by threatening to kill, maim or beat the party in possession, or by such words or actions as have a natural tendency to excite fear or apprehension of danger, or by putting out of doors or carrying away the goods of the party in possession, or by entering peaceably and then turning out by force, or frightening, by threats or other circumstances of terror, the party out of possession, and detain and hold the same--in every such case, the person so offending shall be deemed guilty of a "forcible entry and detainer" within the meaning of this chapter. In addition, diminishing services to the tenant in bad faith by interruption of any of the landlord's obligations as defined in subdivisions (1) and (2) of subsection 1 of section 441.231, RSMo, entitles the tenant to a remedy equal to that for forcible entry and detainer if the tenant has vacated the premises as a result of such diminution.

     534.030. When any person shall willfully and without force hold over any lands, tenements, or other possessions, after the termination of the time for which they were demised or let to [him] the tenant, or the person under whom [he] tenant claims; or a tenant holds over after a mortgage or deed of trust has been foreclosed, after having been given a thirty-day written notice to vacate, from the next rent payment date; or when premises are occupied incident to the terms of employment and the employee holds over after the termination of such employment; or when any person wrongfully and without force, by disseisin, shall obtain and continue in possession of any lands, tenements or other possessions, and after demand made[,] in writing, either personally served or mailed by regular and return receipt mail, for the delivery of the possession thereof by the person having the legal right to such possession, his or her agent or attorney, shall refuse or neglect to quit such possession, such person shall be deemed guilty of an "unlawful detainer".

     534.330. If the verdict of the jury or the finding of the judge be for the complainant, the judge shall record the same, and the judgment shall be that the complainant have restitution of the premises found to have been forcibly or unlawfully detained, and recover of the defendant the sum of .... dollars, [double] the sum assessed by the jury, or found for his or her damages; and also at the rate of .... dollars, [double] the sum found per month, for rents and profits, from the .... day of ...., 19.., the day of judgment, until restitution be made, together with costs.

     534.335. 1. A defendant may plead any defense, including equitable defenses, counterclaim for damages or injunctive relief, or setoff which the defendant has against the plaintiff, including those which result from a breach of section 441.231, 441.233, 441.234, 441.236, 441.237, 441.238, 534.600 or 535.040, RSMo, if it arises out of the same transaction or occurrence or has common question of law or fact with the subject matter of the plaintiff's claim. If the defense, counterclaim or setoff requests relief that independently exceeds the jurisdiction of cases triable under chapter 517, RSMo, the case shall be certified for assignment by the presiding judge of the circuit or in accordance with local rules. Defendants shall not be required to post any bond in order to present these defenses or claims. If a defendant does not assert a claim for relief under this provision, defendant shall not be precluded from bringing such a claim in a separate action.

     2. Where a claim is based upon discrimination on the basis of race, color, religion, sex, national origin, marital status, physical handicap, creed, or family composition, and the court proceedings did not occur on the record, further pursuance of that claim is not subject to the doctrine of res judicata.

     534.345. The court in entering a judgment for possession of the premises shall, at the request of the prevailing party, send a notice to the party ordered to relinquish possession that a judgment for possession of the premises has been entered against said party, and said party must vacate the premises when the judgment is final.

     534.355. The court in entering a judgment for possession of the premises, at the request of the prevailing party, may order the sheriff or appropriate officer to deliver possession of the premises to the prevailing party within fifteen days of the date the judgment becomes final. Said order may be withdrawn at the request of the prevailing party.

     534.380. [Applications for trials de novo and appeals] An application for trial de novo or appeal shall be allowed and conducted in the manner provided in chapter 512, RSMo[, but no]; an application for a trial de novo or appeal shall [be allowed unless a bond which is sufficient to act as a supersedeas of the judgment is filed with the] not stay execution unless the defendant gives bond within the time for appeal. The bond shall be in the amount of the judgment, and with condition to stay waste and to pay all subsequently accruing rent, if any, into court within ten days after [rendition of the judgment] it becomes due, pending determination of the trial de novo or appeal, in conformance with equitable principles subject to the judge's discretion. However, in any case in which the defendant receives a reduction in rent due to a local, state or federal subsidy program, the amount of the bond shall be reduced by the amount of said subsidy.

     534.600. The complainant shall not terminate any lease, rental agreement, or tenancy and recover possession of any premises in whole or in part upon grounds that the tenant made or filed a complaint to the landlord or landlord's agent or to proper authorities regarding allegedly unlawful housing, building, property, safety or sanitary conditions in or about the demised premises or violation of any fair housing law. The defendant may interpose as a defense to any such action by the complainant that the action is in retaliation for any such complaint, and if such defense is established by a fair preponderance of the evidence, the court shall find for the defendant. If the notice to terminate was served within ninety days of the date of any act of the tenant coming within the terms of this section, the burden of proving the notice to terminate was not served in whole or in part for a retaliatory purpose shall rest with the complainant. The court shall not find for the defendant on the basis of the defense described herein if:

     (1) The violation of the alleged unlawful housing, building, property, safety or sanitary condition was caused primarily by lack of reasonable care by the defendant;

     (2) Remediation of the allegedly unlawful housing, building, property, safety or sanitary condition requires alteration, remodeling or demolition which would effectively deprive the defendant of use of the demised premises. Provided, however, that the landlord may not relet the premises until the remediation has occurred; failure to comply with this requirement shall result in liability to the evicted tenant by the landlord for double the amount of rent the tenant was to pay for one month under the rental agreement with the landlord.

     535.035. 1. A defendant may plead any defense, including equitable defenses, counterclaim for damages or injunctive relief, or setoff which the defendant has against the plaintiff, including those which result from a breach of section 441.231, 441.233, 441.234, 441.236, 441.237, 441.238, 534.600 or 535.040, if it arises out of the same transaction or occurrence or has common question of law or fact with the subject matter of the plaintiff's claim. If the defense, counterclaim or setoff requests relief that independently exceeds the jurisdiction of cases triable under chapter 517, RSMo, the case shall be certified for assignment by the presiding judge of the circuit or in accordance with local rules. Defendants shall not be required to post any bond in order to present these defenses or claims. If a defendant does not assert a claim for relief under this provision, the defendant shall not be precluded from bringing such a claim in a separate action.

     2. Where a claim is based upon discrimination on the basis of race, color, religion, sex, national origin, marital status, physical handicap, creed, or family composition, and the court proceedings did not occur on the record, further pursuance of that claim is not subject to the doctrine of res judicata.

     535.040. 1. Upon the return of the summons executed, the judge shall proceed to hear the cause, and if it shall appear that the rent which is due has been demanded of the tenant, lessee or persons occupying the property, and that payment has not been made, and if the payment of such rent, with all costs, shall not be tendered before the judge, on the hearing of said cause, the judge shall render judgment that the landlord recover the possession of the premises so rented or leased, and also his debt for the amount of the rent then due, with all costs and shall issue an execution upon such judgment, commanding the officer to put the landlord into immediate possession of the property leased or rented, and to make the debt and costs of the goods and chattels of the defendant; upon which execution the officer shall deliver possession of the property to the landlord within five days from the time of receiving the said execution, and he shall proceed upon the said execution to collect the debt and costs, and return the writ, as in the case of other executions; and provided further, that if the plaintiff so elects, he may sue for possession alone, without asking for recovery of the rent due.

     2. In a hearing conducted under this section, the tenant may raise as a defense that, within six months preceding the hearing the landlord increased the rent in whole or in part in retaliation for the tenant making or filing a complaint to the landlord or landlord's agent or to proper authorities regarding allegedly unlawful housing, building, property, safety or sanitary conditions in or about the demised premises or violation of any fair housing law. If the judge conducting the hearing finds the tenant has by a fair preponderance of the evidence established said defense, then the judge shall permit the tenant to tender the amount of rent due, less twice the amount of said retaliatory increase, and if the tenant tenders that amount the judge shall dismiss the plaintiff's complaint with prejudice, costs to be paid by plaintiff. If the effective date of the increase in rent occurred within ninety days of the date of any act of the tenant coming within the terms of this section, the burden of proving the rent increase was not made in whole or in part for a retaliatory purpose shall rest with the complainant. The court shall not find for the defendant on the basis of the defense herein if:

     (1) The violation of the allegedly unlawful housing, building, property, safety or sanitary condition was caused primarily by lack of reasonable care by the defendant;

     (2) Remediation of the allegedly unlawful housing, property, safety or sanitary condition requires alteration, remodeling or demolition which would effectively deprive the defendant of use of the demised premises. Provided, however, that the landlord may not relet the premises until the remediation has occurred; failure to comply with this requirement shall result in liability to the evicted tenant by the landlord for double the amount of rent the tenant was to pay for one month under the rental agreement with the landlord.

     535.110. [Applications for trials de novo and appeals] An application for trial de novo or appeal shall be allowed and conducted in the manner provided in chapter 512, RSMo; [but no] an application for a trial de novo or appeal shall not stay execution unless the defendant [give bond, with security sufficient to secure the payment of all damages, costs and rent then due,] gives bond within the time for appeal. The bond shall be in the amount of the judgment, and with condition to stay waste and to pay all subsequently accruing rent, if any, into court within ten days after it becomes due, pending determination of the trial de novo or appeal, in conformance with equitable principles subject to the judge's discretion. However, in any case in which the defendant receives a reduction in rent due to a local, state or federal subsidy program, the amount of the bond shall be reduced by the amount of said subsidy.

     535.155. The court in entering a judgment for possession of the premises shall, at the request of the prevailing party, send a notice to the party ordered to relinquish possession that a judgment for possession of the premises has been entered against said party, and said party must vacate the premises when the judgment is final.

     535.165. The court entering a judgment for possession of the premises, at the request of the prevailing party, may order the sheriff or appropriate officer to deliver possession of the premises to the prevailing party within fifteen days of the date the judgment becomes final. Said order may be withdrawn at the request of the prevailing party.

     535.300. 1. A landlord must keep the security deposit in a separate interest bearing account. At the end of the tenancy, interest proportionate to the security deposit must be returned to the tenant in accordance with this section. The landlord may not demand or receive a security deposit in excess of [two] one months' rent.

     2. Within thirty days after the date of termination of the tenancy, the landlord shall:

     (1) Return the full amount of the security deposit plus interest; or

     (2) Furnish to the tenant a written itemized list of the damages for which the security deposit or any portion thereof is withheld, along with the balance of the security deposit.

The landlord shall have complied with this subsection by mailing such statement and any payment to the last known address of the tenant. If the tenant disputes the amount withheld, the landlord must return the disputed amount to the tenant unless the landlord shall have conducted a move-in inspection with the tenant, and offered to conduct a move-out inspection, which substantiate withholding of the disputed amount.

     3. The landlord may withhold from the security deposit only such amounts as are reasonably necessary for the following reasons:

     (1) To remedy a tenant's default in the payment of rent due to the landlord[,] pursuant to the rental agreement, provided that the landlord makes a reasonable effort to relet the premises;

     (2) To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted[; or], ordinary wear and tear being defined as a gradual deterioration which results from the use, lapse of time, and the operation of the elements;

     (3) To compensate the landlord for actual damages sustained as a result of the tenant's failure to give adequate notice to terminate the tenancy pursuant to law or the rental agreement; provided that the landlord makes reasonable efforts to mitigate damages.

     4. The landlord shall give the tenant or his representative reasonable notice in writing at his last known address or in person of the date and time when the landlord will inspect the dwelling unit following the termination of the rental agreement to determine the amount of the security deposit to be withheld, and the inspection shall be held at a reasonable time. The tenant shall have the right to be present at the inspection of the dwelling unit at the time and date scheduled by the landlord.

     5. If the landlord wrongfully withholds all or any portion of the security deposit in violation of this section, the tenant shall recover as damages [not more than] twice the amount wrongfully withheld.

     6. Nothing in this section shall be construed to limit the right of the landlord to recover actual damages in excess of the security deposit[, or to permit a tenant to apply or deduct any portion of the security deposit at any time in lieu of payment of rent].

     7. As used in this section, the term "security deposit" means any deposit of money or property, however denominated, which is furnished by a tenant to a landlord to secure the performance of any part of the rental agreement, including damages to the dwelling unit. This term does not include any money or property denominated as a deposit for a pet on the premises.