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Oh crap. I don't explain it well. But you kinda did Corn-fused
Ok, here goes.
Lease shows the following:
OWNER acknowledges receipt of the first's month's rent of $2000.00, Security Deposit of $2000 for a total payment of $4000.00
Neighbor claims that she just received $2000.00.
Um ... wouldn't the LL have noticed FOUR YEARS AGO that she only received the security deposit, not the first month's rent (or vice versa)? Wouldn't she have SAID something FOUR YEARS AGO?
I suspect she is likely just remembering incorrectly now.
The lease states that they paid first month rent AND security deposit. Neighbor is claiming that no, the security deposit is first month AND deposit.
Thoughts?
I don't even know what that sentence means or implies. A deposit is not first months rent and first months rent in not a deposit. Is she claiming they paid the first month with the deposit money, if so it's her fault and her error to prove.
Security deposit can not be first months rent and deposit unless it is double the amount of the rent.
She seems confused because she didn't enter it into Quicken which I think is just a program on her PC I would guess. Perhaps she entered it as both, got confused because she had extra money showing as a credit and removed it.
She owes the return of the security deposit minus any damages.
Well, it's hard to believe that four years ago she didn't notice not getting rent for the first month.
You just need to look at her bank deposits. Leases have mistakes in them all the time.
If it would be helpful or appropriate, you could ask the tenant for a copy of the checks written when they moved in, because you need to determine how much they paid for a deposit.
I had to do that when I took over management of an apt building where the owner didn't keep track of things. For tenants who couldn't prove it, and I couldn't prove it, we just negotiated an amount both sides thought sounded fair and wrote up an agreement. Back then, he normally asked for one month's rent, and tenants all agreed to that. Some probably hadn't paid any deposit at all, but oh well. We didn't want any arguments when they moved out, so got an agreement in writing.
Well, it's hard to believe that four years ago she didn't notice not getting rent for the first month.
You just need to look at her bank deposits. Leases have mistakes in them all the time.
If it would be helpful or appropriate, you could ask the tenant for a copy of the checks written when they moved in, because you need to determine how much they paid for a deposit.
I had to do that when I took over management of an apt building where the owner didn't keep track of things. For tenants who couldn't prove it, and I couldn't prove it, we just negotiated an amount both sides thought sounded fair and wrote up an agreement. Back then, he normally asked for one month's rent, and tenants all agreed to that. Some probably hadn't paid any deposit at all, but oh well. We didn't want any arguments when they moved out, so got an agreement in writing.
It's sticky. She had a stroke and since then has not remembered a lot. She has entries in quicken for 4 yrs ago and it does not show a total of $4000.00 as stated on lease. Four years ago she entered in everything.
I like the idea of just asking tenants for copy of checks - thanks. I'll write back with findings.
Oh crap. I don't explain it well. But you kinda did Corn-fused
Ok, here goes.
Lease shows the following:
OWNER acknowledges receipt of the first's month's rent of $2000.00, Security Deposit of $2000 for a total payment of $4000.00
Neighbor claims that she just received $2000.00.
Again, LL needs to go through ALL of her banking deposits back to the beginning of renting to these tenants and add up every single deposit she has from this tenant. Then make sure that there are amounts paid for every month they lived there. Whatever is left over from the deposits less the total rent due will equal what is left for the security deposit OR for the first month's rent. It makes a huge difference how that month, or however much it ends up being, was signified when it was initially paid.
Total deposits - total rent due for full period living there = net balance of ?????.
If there is nothing left for a security deposit then you have a bit of a problem because that would mean that the tenant had paid their first month's rent and no security deposit. It is just best if you first do all of the digging in banking and then come back if you still have questions.
And as I said before, if the LL claims she only collected 1 month initially then I find that extremely odd why she didn't collect either a security deposit OR the first month's rent as well, whichever one it is. Why would that be?
It doesn't seem logical that she wouldn't get a deposit plus the first months rent, therefore most likely she did.
The neighbor would not know what she got 4 years ago.
Also if she didn't get a deposit she should have asked for one, or told the tenant to sign a form stating that they did not in fact pay it.
Ask the tenant, if they've been a good tenant and are honest they won't lie, they know if they paid or not.
If you don't pay a deposit that's not something that you don't forget happened. If you don't know if they paid or not after a stroke that seems like sketchy memory.
Again, LL needs to go through ALL of her banking deposits back to the beginning of renting to these tenants and add up every single deposit she has from this tenant. Then make sure that there are amounts paid for every month they lived there. Whatever is left over from the deposits less the total rent due will equal what is left for the security deposit OR for the first month's rent. It makes a huge difference how that month, or however much it ends up being, was signified when it was initially paid.
Total deposits - total rent due for full period living there = net balance of ?????.
If there is nothing left for a security deposit then you have a bit of a problem because that would mean that the tenant had paid their first month's rent and no security deposit. It is just best if you first do all of the digging in banking and then come back if you still have questions.
And as I said before, if the LL claims she only collected 1 month initially then I find that extremely odd why she didn't collect either a security deposit OR the first month's rent as well, whichever one it is. Why would that be?
Great idea - thanks.
Regarding LL- She can't remember. That's it in a nutshell.
Regarding LL- She can't remember. That's it in a nutshell.
Your welcome and please let us know how it all turns out or if you end up with any questions once you go through everything. And just for clarification, she (or you) needs to go through the actual bank statements for the deposits, NOT her QBs, to get the most accurate information.
Your welcome and please let us know how it all turns out or if you end up with any questions once you go through everything. And just for clarification, she (or you) needs to go through the actual bank statements for the deposits, NOT her QBs, to get the most accurate information.
Good luck!
Yes. That's exactly what I will do (bank statements). I'll let you guys know the outcome.
Regarding LL- She can't remember. That's it in a nutshell.
Has she ever rented out before, whatever she does with the security deposit is where it will be. It's supposed to be kept in a safe place and not commingled with other funds.
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