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We are renting a house in California and started getting certified letters delivered to our house for the home owners. We also had several people drive by the house slowly checking it out, even to the extent that someone walked down our drive way and asked if our house was going to be for sale soon. So it definitely got us thinking whether our landlord was in financial trouble with the house or not.
My wife called and asked our landlord if everything was okay with the house and told her about all the recent mail and people driving by the house activity. The landlord said that everything was fine... A couple of days later we found our house on a real estate web site in pre-foreclosure. At that point we pretty much knew the landlord was obviously being dishonest to us and definitely didn't have our family's best interest in mind. At that point we started looking for another rental as we wanted some control of when and where we were going to move our family. My wife again called our landlord to ask her about the house and also verbally told her that we would be sending her our 30 day notice. Our landlord then got really snippy with my wife and ended the conversation very abruptly.
A few days later our landlord called and graciously confessed to what was happening with the house. She told us that they exhausted their savings trying to keep up with the payments, but couldn't keep up with it anymore. She said they were going to just let the house go if they couldn't sell it (they're about $400k upsidedown). With us fearing not getting our deposite back with their financial situation, my wife asked if we could just use our deposit instead of paying our last partial month's rent. Our landlord said she was fine with that and to just put that in our notice. My wife did exactly that.
Roughly a week later our landlord emailed us saying she talked to her husband and they decided that we need to pay our last month's rent. We had already commited our normal rent funds for the deposit on the house we were having to move into. We immediately emailed her back saying that we were sticking with our agreement and notice.
A day later we receive a 30 day notice in the mail to evacuate her property. At this point we're really wondering why she's acting in this manner and why she sent us a 30 day notice when we had already sent one to her. Anyway we confirmed to her that we already spent some of our rent money on the deposit of the new house and we're sticking to our agreement.
A few days later our landlord calls my wife saying we need to pay rent on the 1st or get out of her house, or she'll be here to "help" us move. Needless to say that conversation didn't end well.
The next day she emails us saying she is sorry for the situation escalating and she didn't want it to end on a bad note, but it would be better for everyone if we paid our rent.
My question is what the heck are we suppose to do? Sorry for the long drawn out question, but I had to try to explain the whole situation.
Don't pay it. You had an agreement, it was put in writing. Laws vary by state, but typically, even if she did want to come after you for non-payment, there's not much at this point she can do. No point in filing for an eviction as you're already planning on being out. And she can't move forward with collection activities because your deposit would have to be applied to your balance first, which would make it zero. She's just bluffing b/c of her poor financial position. You've done nothing wrong and are right to turn in your notice and move on. Good luck!
She has not been honest with you from the get go. I wouldn't worry about it since you already know without asking there won't be a deposit coming back to you.. What can she do? Take you to court? I think you would win anyway...
As far as I know, she can't come into your home without your permission so if she comes over and trys to cause anykind of ruckus, I'd just call the police.
I don't know the laws in your state about this. Heck, I don't even know the laws in my own state about this type of situation. Normally, if you don't pay rent, you can be held liable, whatever the situation.
By giving notice to move out before the LL actually broke the lease by getting foreclosed on, you might put yourself at risk for a judge to say you are the one who broke the lease.
The problem is, there aren't many of this sort of cases that have gone to court. I don't think most states have laws on the books to specifically deal with this sort of deal. If the owner is in foreclosure, they often can't afford the court costs to sue or evict, so tenants are just staying until they get kicked out by the bank.
There will likely be a lot more of these cases in upcoming months, just due to the vast number of renters getting foreclosed on. I think there will be renters suing owners and owners suing renters.
My advice would be to NOT pay anything additional, as if you pay your last month's rent, it is highly unlikely you will see any portion of your deposit back. I think a judge would likely agree. However, go back and write down dates and times and what was said, the best you can remember it, for all conversations you can think of, and put a copy of your notice you sent with it (hopefully you have a copy). If you end up in court, it is always better to be the one who is more prepared.
Don't let her bully you if she shows up on the first to "help" you move. That is known as an illegal eviction. Check your local laws, of course, but in most states, a sheriff acting under a court order is the only one who can force you to move.
When you move, do a good job on cleaning and expect that she will send you a bill for every tiny bit of damage. I suggest you take lots of pictures, of overall rooms, condition of carpet, any known damage areas. Expect the owner to send you a list of any damage they think they can pin on you. You might need to consult a lawyer at that point, depending on what they send.
California is not a landlord friendly state and most of the laws are written for the tenants protection, so the statment about getting you out pronto is a joke. Where I am in Texas is a different story; someone doesn't pay their rent and their couch is on the street in the matter of about 3 weeks.
Bottom line is it would take them a lot longer to evict you than it will for the bank to take it back from them. They are obviously broke as she has already disclosed that to you, so at this point you have to start thinking if they will even have your security deposit to return to you. If I had to guess I would say no; at that point you would be in line with the bank and all their other creditors trying to re-coup your security deposit.
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