Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I completely agree in PRINCIPLE with others that warn about allowing tenants to not use deposit for rent BUT like most things there are a range of realistic scenarios where I have 'violated' this principle and it worked out OK.
The basic mindset of most renters is rarely aligned with home owners -- they typically do not have much if any cash cushion and that "deposit" is not seen by them as money that is "bound" to the condition of the property. That is why most experienced landlords adopt a very specific sequence that is triggered a few months before the lease is scheduled to end. That involves a PROACTIVE inquiry to the tenant asking them if they would like to renew / extend their lease. If the tenant does not respond to the initial request it makes sense to follow-up / escalate. The tenant will then generally give some feedback and if their intention is to leave that triggers the next level of notification. Ideally this has a schedule reminding the tenant that their security deposit is fully refundable only if the condition of the property is such that nothing beyond normal wear is noted. That notice should note that things like repainting or replacement of carpet before their normal lifespan is NOT normal wear and will result in damages being deducted. For rental homes the extension of standard to the lawn and exterior are also good to point out. Also important to remind tenants that the unit was CLEAN when they moved-in and the expectation is that it will be that way when they move out...
The "opening" is that if the tenant is hoping to use some of the deposit to cover rent they can agree to things like early move out / accelerated inspection schedule. This works for most landlords as the SOONER units are emptied the quicker they can be rented. I have also taken up tenants on offers to do things like use their skills if they are in the cleaning or landscaping business to leave the unit in BETTER condition than when they moved and credit this toward their final rent. This is not going to work with somebody that has NO SKILLS!
There other things that can make sense too -- I know a real estate agent that literally owns a mid-sized Uhaul type truck that he lets tenants use to move. It is painted with his logo / business info and it is free advertised whenever used, not to mention it saves tenants a couple of hundred bucks so they are less likely to scramble and try to use deposit for rent. Similarly, when it comes to things like utilities I've let strapped tenants transfer service back to me a month early with the understanding that the $50 or so that they'd save on water/ gas / electric would motivate them to get the rest of their deposit back...
The security deposit is supposed to be put into a non-interest bearing acct or an escrow and should not be co-mingled/misused for anything other than reserve funds for any possible damage/unpaid rent.
I "inherited" the lease and tenants when I bought the house and there is nothing in about this situation. I told him that because I have not been able to inspect the house, that he could not use the security deposit in lieu of the half month's rent. As of today, no rent has been paid. As he apparently does not intend to pay, is it within my rights to withhold late fees from the security deposit for the days up until he moves out?
Yes, but it would be a good idea to warn the tenant
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
