Tenant signed lease, paid security deposit, cannot move in now, what next? (apartment, lease agreement)
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Good afternoon,
I (landlord) entered into a a lease agreement with a tenant on Feb 28th. They paid a security deposit, with first month's rent due prior to April 1st, which was their scheduled move-in date. Today, March 3rd, I received an email stating that their mother-in-law has fallen ill and they are unable to commit to the one year lease. I have already cashed their local bank check, and have opened a new account in my bank and depositd the funds. Not sure if my options are, keep the security deposit, return their deposit, force them to commit, begin legal action towards a full amount of a years lease.
Thank you in advance for your time,
Chris in Connecticut
we once had to do this. Although we backed out the day after signing the lease. If I were you, I would just let them go. Give back their deposit and just let it be. There are so many people who are so into taking legal action when really this is such a minor thing and if it's a nice place, you can have it rented out pretty quickly. Just let them out of the lease and move on.
Honestly, i feel the same way also. I dont want to be the "bad" landlord. They wanted to move in for March, but couldn't so i let them pay the deposit now and they could pay first month's rent prior to taking the keys. But now i have to re advertise and what not and legally i can't keep the security deposit. The only thing i can really find is that i have to return it within 30 days of them moving out, but they havent even moved in yet. I just want to make sure i am doing the correct thing also without jeopardizing my position.
Thanks,
Chris
there is the practical answer and the legal answer.
the practical answer is you got the money and you can try to keep it and let them fight you to get it back.
the problem in many states is this :legally the security deposit is only to secure the apartment against damages and for any un-paid rent.
in your case neither apply.
if you try to hold them to the lease the reality is you cant put it up for rent if your claiming its their apartment. this could take months of no rent.
you could try to keep their money and have a judge award you it as damages but damages can be tough to prove. saying i turned 3 people away doesnt work.
you could sue them for the entire length of the lease but they can just declare bankruptsey and all you did is lose months of rent.
there is no real legal answer that wont hurt you.
the practical answer is probley the best choice. stress to them they broke the contract and your keeping the money and you will let them break the lease and hope they dont challenge you .
Keep the security deposit and return the remainder if you want or you can hold them liable for the lease until you have find a new tenant and return the remainder. You can't double dip but the tenant has a duty to actively advertise to minimize their damages and yours. you also have to start advertising right away and show proof of doing so.
Some of the posters are tenants and look at it from a tenants point of view, I look at it from a legal point of view for both sides.
It is not fair to you when a tenant just changes their mind because they have an issue that came up...what if you would say "thanks for the money but i changed my mind and will refund you, but now you don't have a place to stay..too bad, but my family member got ill"...
we once had to do this. Although we backed out the day after signing the lease. If I were you, I would just let them go. Give back their deposit and just let it be. There are so many people who are so into taking legal action when really this is such a minor thing and if it's a nice place, you can have it rented out pretty quickly. Just let them out of the lease and move on.
This ^^^. Pay it forward. You're only talking days.
Keep the security deposit and return the remainder if you want or you can hold them liable for the lease until you have find a new tenant and return the remainder. You can't double dip but the tenant has a duty to actively advertise to minimize their damages and yours. you also have to start advertising right away and show proof of doing so.
Some of the posters are tenants and look at it from a tenants point of view, I look at it from a legal point of view for both sides.
It is not fair to you when a tenant just changes their mind because they have an issue that came up...what if you would say "thanks for the money but i changed my mind and will refund you, but now you don't have a place to stay..too bad, but my family member got ill"...
being a landlord myself i agree but unfortunetly most laws protect tenants an not landlords.
not sure what the laws are there but here in ny its very tricky trying to hold a tenant to the lease while at the same time trying to re-rent.
if the landlord doesnt have written permission to find a tenant on the behalf of the tenant and just tries to find a tenant on his own he is deemed to have taken control of the apartment back and the tenant is off the hook from that moment on.
this stuff can be a minefield for an unsuspecting landlord once a good attorney spills the beans on how to get out of a lease to a tenant.. i mentioned a few times how my ex-wife broke her lease through loop-holes and there wasnt anything the mgmt office could do to hold her to the lease until it was re-rented .
Last edited by mathjak107; 03-03-2012 at 07:33 PM..
The first thing you do is grab a copy of Conn General Statutes, Title 74a. Read Chapters 830 and 831 as that will tell you exactly what you can and must do regarding the monies.
YOU CAN NOT "JUST KEEP" THE MONEY. If you do in violation of the statutes, read the section that tells you how much the tenant can recover above and beyond what they paid as a penalty to you for violating the law.
The sinplest way is to just refund their money in the time frame required by law and call it a day. Find another tenant. The other option available to you is to retain the amount that constitutes damages after you made a legitimate attempt to mitigate.
However, the fact that as a landlord, you were not even aware of, or didn't even think of checking your state laws, and had to come asking in a open internet forum indicates a potential to walk into expensive problems in the future. The number one reason that landlords fail or are fined out the whazoo by the court is their failure to even take the most basic step of reading the laws. Being a landlord is a busines with some serious laws and consequences if done wrong, you need to decide after reading he laws if this really is for you, or if you should just be the "owner" of the property and have a PMC handle the rental.
I would tell them I will try to rent the place for April if I get it rented i will return the money if i cannot rent it they are under contract sorry thats life. You will win in court you have a signed contract. Go try to buy a house and sign the paper work and go back in a day or two and tell them you changed your mind.
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I just want to make sure i am doing the correct thing also without jeopardizing my position.
