Penalty Multiplier

Full Definition

A penalty multiplier is a statutory remedy that awards a tenant a multiple of the deposit amount when a landlord wrongfully withholds all or part of the security deposit. Most states that have a multiplier set it at two times (double) the amount wrongfully withheld, while others set it at three times (treble damages). In California, for example, a tenant can recover twice the amount wrongfully retained. In Massachusetts, a landlord who willfully withholds the deposit owes three times the deposit amount plus attorney fees. The multiplier is added on top of the actual deposit amount, so a tenant whose $2,000 deposit was wrongfully withheld in a 2x state can recover $4,000 (the $2,000 deposit plus the $2,000 penalty), or up to $6,000 in a 3x state. Not all states have multiplier statutes -- some allow only actual damages -- so the available remedy depends on the jurisdiction. The multiplier is typically triggered by the landlord's failure to return the deposit or provide an itemized statement within the required deadline.