Yes, it is legal. The purpose of a security deposit is to cover any expenses required to repair damages to the property that may occur during residency. If no damages occur, then the security deposit can be returned.

However, if damages to the property do exist, the owner has a right to use the security deposit to cover them. These damages can include anything that has made the property less valuable than it was before it was rented. It can be superficial things, such as cleaning and painting as you mentioned, to more substantial things like repairing walls, replacing doors or fixtures, repairing floors, completely replacing carpet, and much more.

Keep in mind that your landlord should offer you the opportunity to correct the problems on your own to keep your security deposit. If he doesn't or keeps more than required to fix the damages, you may have a small claims case on your hands. It's always a good idea to take pictures of a place when you first move in and then again when you move out to protect yourself.

For more info about security deposits and your rights regarding them, check out these sites:
 http://www.rentlaw.com/securitydeposit.htm
http://www.sftu.org/deposit.html
http://living.apartments.com/landlords-leases/how-to-protect-your-security-deposit/
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The first question would be... did you damage the paint and stain the carpet?

Legally, to have your security deposit returned to you, the apartment must be in the exact same condition as it was when you rented it. (Or better obviously)

If your answer is yes, then the landlord has every right to withhold a portion of your deposit to cover the necessary repairs.

If your answer is no, then the best you can do is to make the landlord aware that you are familiar with the law and ask him to compromise. IE: you know there is a ding in the paint from you moving and you're willing to pay for touch ups.

The problem arises when landlords abuse the security deposits by holding out regardless of the lessees cleanliness. All apartments are repainted and have the carpets cleaned prior to releasing.

In the future it is a good rule to always photograph an apartment or house prior to moving in and especially any existing damages, optimally with the dated lease or newspaper in the photo
Source(s):
Having 5 rental homes

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If you are a fairly clean type and you have a digital camera, it is a good idea to take a lot of pictures just before you move in. Take pictures of the [[Carpeting|carpets] and the furniture, and the kitchen, including the inside of the oven. If you are responsible for the yards, take pictures of them also. This is especially important if you rent from a management company. Even very honest ones can forget the condition that the place was in before you moved in.
Source(s):
Former apartment manager

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You can only be charged for what exceeds "normal wear and tear".  If you painted your walls and they have to repaint them, or if you did some type of excessive damage to the walls and they have to repair them, yes, you'd be responsible.  The same for your carpet; excessive odor, stains or cigarette burns and carpet charges are justified.  If you've left your apartment in the same condition it was given to you, the landlord does not have the right to charge from your security deposit.  It is assumed that an owner would have to do basic re-painting and carpet cleaning between tenants.  Take photographs if possible, keep good records and if necessary, take it to small claims court and fight for your money back.  Good luck.
Source(s):
http://www.associatedcontent.com/article/1309735/keeping_a_tenants_security...

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Normally those things will be stipulated in your lease agreement. The rule of thumb here in Tennessee ,that if the carpets were professionally cleaned when you moved in, you will have to have them professionally cleaned with a receipt provided at the finally walk through or you can have the landlord take care of it and deduct it from the deposit.

Hope this helps

Source(s):
Real Estate Agent

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