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Since I am here, I wanted to check to see if this is true.
I have been told that not paying the last month/month and half rent in the amount of the security deposit is a pretty standard form of doing business that both customary and acceptable. Is that true ?
I have done this, both as a tenant and landlord. However, I always communicate with the other party first to make sure it is understood and that ok it first.
Since I am here, I wanted to check to see if this is true.
I have been told that not paying the last month/month and half rent in the amount of the security deposit is a pretty standard form of doing business that both customary and acceptable. Is that true ?
My understanding is that it is not customary and typically unacceptable. Deposit's purpose is to secure cost that LL may need to do due to tenant that is not the norm of wear and tear type deal.
What is going to happen is that if LL deems that he needs to deduct something from your security deposit but he only has 0.5 month of rent because you didn't pay last month rent (NJ's max is 1.5 month). He or she will come after you one way or another.
Also should you ever move to place that is tougher on renting like NYC. This can backfire and hurt your chances at renting.
If you really want to avoid scumbag LL or just general headache of dirty LL who may not return your security deposit or take some out unjustly. Use small claims courts (which actually scares LL more due to legal cost and time than typical tenant), video the apartment as you move in and video the apartment after you moved out/cleaned it (for your own records to dispute), and so forth.
If you plan to use part of your security as last month's rent. Definitely bring that up from start and get it in writing in lease. Otherwise you are asking for trouble.
Agree with Babo unless the landlord has said ok..if you are in an apt complex run by a management co..forget about it
That said NJ has strict laws on returning security, it must be returned within 30 days with interest, if any money was with held must provide an itemized list of why and how much
Since I am here, I wanted to check to see if this is true.
I have been told that not paying the last month/month and half rent in the amount of the security deposit is a pretty standard form of doing business that both customary and acceptable. Is that true ?
Read your lease and see what is allowed (if you are asking because you want last month's rent to be taken out of your security).
Most leases specifically state that security deposits are not to be used as the last months rent. Just speak to your landlord/apartment manager and see if they'll agree to it. If not, you'll have to pay the rent and wait for the deposit to be returned.
Okay so if you do not allow it and a tenant does it anyway what do you do about it?
If there is no damage to the apartment probably nothing except let anyone else inquiring about this tenant know about it. If they owe additional for property damage then they will take them to court.
I agree with GoYanks34. Ask the landlord. On the other hand, read this info in the Truth in Renting Handbook that you should have been given at the start of your lease:The name of the bank, etc may also be written directly into your lease.
A person who receives a security deposit may not combine security deposit money
with his or her own funds. Within 30 days of receipt of the security deposit and at the
time of each annual interest payment the landlord must notify the tenant in writing
of the name and address of the banking institution or investment company at which
the money is deposited, the amount of the deposit, type of account and current rate
of interest for the account. In addition the landlord must notify the tenant within 30
days of transferring security deposit money to a new landlord or moving the security
deposit to another account or bank. If a tenant does not receive proper notices or is
not paid interest as required, the tenant may use the security deposit for payment
of rent by giving the landlord written notice that the security money plus interest at
the rate of 7% per year be applied to rent payments or payments due or to become
due from the tenant. However if the tenant does not receive the annual notice at the
time of the annual interest payment or is not paid the annual interest, as required,
the tenant must give the landlord written notice and allow the landlord 30 days to
comply with the annual interest payment and notice requirements. If the landlord
does not reply within the allotted time the tenant can use his security deposit toward
his rent.
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If the tenant’s security deposit gets applied to his rent, the landlord may
not make further demand for an additional security deposit.
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