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I am relocating with my job so I am having to break my lease with my current apartment. The people that own it use a management company to run the day to day work. The management company is claiming that the "fee" to place the new tenant is the reason that they are keeping the security deposit. (one months rent) This seems a little fishy to me and just wanted to get some input if I should fight this or let it go.
TLDR:
Security deposit - $750
Management Co placement fee for new tenant: $750
= no deposit back to me
legit?
Last edited by pwatson5; 11-14-2015 at 08:28 PM..
Reason: add details
If its in the lease they can do it but I'd fight it even if its in the lease. Threaten legal action, keep calling them, keep asking to speak to superiors, make sure they know you will be reporting them to BBB and leaving bad reviews everywhere you can. If its an apartment that has a lot of students tell them you'll be reporting them to the university and writing the school newspaper and posting to the school blog about how they rip off students
When you threaten legal action I find its better if they think you have a family member who is a lawyer. Because depending on the complex they might think you are too poor or something to afford a lawyer. So I'd say something like "my brother/buddy from college/whatever is a lawyer in *pick a different city in the same state* and he said its complete bull**** what you're trying to do and you're gonna refund my deposit right now or you're gonna have a boatload of trouble and if you think I'm #&#(%( joking just test me!!! That deposit better be in the mail tomorrow or you'll be hearing from us by Wednesday!!"
Or tell them you'll be coming by the next day to pick it up and it better be ready for you. A lot of people get scared and can't handle the face to face confrontation
"The LANDLORD may apply this deposit for any monies owed by TENANT under the lease or Tennessee law, physical damages to the Premises, costs, and attorney's fees associated with TENANT's failure to fulfill the terms of the lease and any monetary damages incurred by LANDLORD due to TENANT's default"
I understand how they would see it that way, I am just curious if the management company's fee would be considered damages.
Most property managers charge 1 month rent to place a tenant. Good luck getting out of that one no matter how much you yell and threaten. If you threaten too early then you can bet they will nitpick the crap out of the place at move out.
They would consider the deposit to be applied to "any fees owed".
I think if you keep at them they will give it back. They don't want to waste time going to court for just 750 dollars. They lose more money like that.
Move out, demand a written explanation of where your security deposit is. This way they won't make up a bunch of damage to the apartment and just keep the money like that. After you have proof that the deposit is being kept for reletting fee, then strike.
You may even have to fake a letter from a law firm to scare them. Or just go get in their face in person
You are breaking your lease. You are darn lucky that it will only cost you the deposit instead of all the rent that is due until the end of the lease. You are getting away light.
I am relocating with my job so I am having to break my lease with my current apartment. The people that own it use a management company to run the day to day work. The management company is claiming that the "fee" to place the new tenant is the reason that they are keeping the security deposit. (one months rent) This seems a little fishy to me and just wanted to get some input if I should fight this or let it go.
TLDR:
Security deposit - $750
Management Co placement fee for new tenant: $750
= no deposit back to me
legit?
In Tennessee the law is that a landlord has a duty to mitigate damages if a tenant breaks a lease. What this means is that they can only charge you rent until they find another tenant. And they can also charge you for any actual out of pocket expenses related to your breaking the lease.
So, the question is, is the management fee directly related to your breaking your lease?
Well, since the landlord wasn't expecting to have to pay that fee again until the end of the year, probably. The usual fees mentioned in duty to mitigate situations that I have heard of, do include advertising costs.
You could try to argue that the landlord would have to pay these fees after you moved out anyway, but since the courts allow for advertising costs to find a new tenant when a lease is broken, I'd expect it would also be allowed to charge you for the management fee.
Considering you'd probably lose in court, in my opinion it wouldn't be worth filing a small claims court action for you. You'd have to file in the court where the apartment is located. And since you relocated, I'm assuming that wouldn't be convenient. Plus if you lose, you will have to pay your court fees plus the landlord fees most likely.
So, it's my opinion that the landlord is most likely correct in charging you the fee from your deposit and that it wouldn't be worth the hassle suing over it.
In my state fees cannot be taken from the deposit only damages. They would have to charge the $750 separately and refund the deposit less damages. If they took it out of the deposit then I could sue them in small claims court for double the deposit. The charge itself is perfectly legal but taking it out of the deposit could not be depending on which state you are in.
Thanks everyone, I had just never dealt with a management company before and wasn't sure what to expect. I figure I am doing ok as far as additional costs go so ill just let my deposit go and not worry about any other charges.
"The LANDLORD may apply this deposit for any monies owed by TENANT under the lease or Tennessee law, physical damages to the Premises, costs, and attorney's fees associated with TENANT's failure to fulfill the terms of the lease and any monetary damages incurred by LANDLORD due to TENANT's default"
I understand how they would see it that way, I am just curious if the management company's fee would be considered damages.
Yes the management companies fee would be considered damages. And for $750 it is well worth the time of the management company to show up in court with a copy of the lease demonstrating to the judge that you did in fact default on the lease and you do owe the damages.
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