Last month's rent and security deposit (apartment, leasing, credit report)

[ab_13]

I rented a place from June 2011 to June 2012. When signing the lease we paid first and last month's rent, plus security deposit equal to one month's rent. The landlord just asked us about paying the rent for May, and we replied that we already paid the last month's rent. He said that the last month's rent is only a deposit and not actually the rent for the last month.

The lease says:

Last month’s rent of $xxxx. Last month’s rent may be deemed security deposit in the event if tenant damages were to exceed the amount of the original security deposit.

But the security deposit section says:

SECURITY DEPOSIT Before the commencement of this Agreement, Tenants shall pay Landlord $xxxx as a security deposit. Landlord may use there from such amounts as are reasonably necessary to remedy Tenants’
default in the payment of rent, repair damages to the premises exclusive of ordinary wear and tear, and to clean the premises if necessary. Landlord shall refund Tenants the balance of the security deposit after such deductions within twenty-one (21) days after the expiration of this Agreement. If deductions have been made, Landlord shall provide Tenants with an itemized account of each deduction including the reasons for and the dollar amount of each deduction.

If it is called last month's rent, I don't see how we can owe rent for the last month. If he wanted twice the monthly rent for deposit, he should have done that. Saying it may be deemed security deposit if damages are higher than the deposit doesn't make sense, by the time that is determined the last month has already transpired.

Am I wrong in thinking the last month's rent is indeed our rent for May?

[2bindenver]

Does your lase run until June 1 or June 30?

[ab_13]

Until June 1st

[Skico]

"Last month’s rent may be deemed security deposit in the event if tenant damages were to exceed the amount of the original security deposit."

Clearly he has a right to consider the last month's rent a deposit provided that the damages to the apartment wont be covered by the security deposit. Have you damaged the place much? If there is not significant damage beyond normal wear and tear, you might try to have the LL come out to the premises to take a look.

But that provision in the lease seems pretty wonky. On the one hand it gives the LL a nearly unilateral right to just consider it a deposit but then again on the other, it requires that that condition be met. It's not clear whether he actually has to determine the extent of the damage before declaring that money a deposit.

This isn't legal advice though and if you really want to know the extent of your rights, you'd have to talk to a lawyer.

[Nobody of Import]

Originally Posted by ab_13

But the security deposit section says:



If it is called last month's rent, I don't see how we can owe rent for the last month. If he wanted twice the monthly rent for deposit, he should have done that. Saying it may be deemed security deposit if damages are higher than the deposit doesn't make sense, by the time that is determined the last month has already transpired.

Am I wrong in thinking the last month's rent is indeed our rent for May?

If you're not in trouble with the space being "damaged" (take pictures with a time-stamping camera...) you're probably right. However, keep in mind what the CRS says on the matter. If they have ANY verbiage claiming it to be any sort of "security deposit" then it's liable to be deemed one by the landlord anyhow and you'll "owe" on that last month if they decide to claim you've damaged the unit. It'll entail you having a ding on your credit report, possibly having to take them to court, etc. unless everything is good with your Landlord.

Now...in the case of leasing a trailer in a park...heh...the law's a bit more specific. You can't claim last month (or three, in my case for an upcoming lease as I'm coming into the State for a while...) as ANYTHING other than rent. If they try to claim it may be considered a security deposit in the lease, it IS one and there is a limit on that to the tune of one month's rent in the case of a single-wide versus two in the case of a double-wide or larger. In that context they can keep it in the case of a broken lease where you're doing the breaking, but past that, it's payment of rents outside of what would be considered legit.