owned a property with a tenant for five days before they vacated

[Damon Albers]

Hello All, 

I purchased a property from a turnkey company that was acting as the realtor from a home they had rehabbed, sold and managed for the previous owner. 

I took ownership on the property 9-29-2021 with the current tenant in place and then the tenant vacated 10-4-2021. 

Who does the security deposit belong to, me or the previous owner? There is also an open balance of the previous tenant for excessive damages.

I thought that since I took ownership of the property while the tenant was still in the house, the security deposit and any monies owed for damage would belong to me. I'm being told by the management company that the money belongs to the previous owner that I bought the property from.

Who is right?

Thank you, 

Damon

[Long Dang]

It's state by state considerations. I'm not sure where your property is but the security deposit belongs to the tenant. But ownership of responsibility of the security deposit goes to the new owner - so that you can deal with any damages that the tenant leaves behind. 

Generally, in a sale, the previous owner should have given you documentation on where that money's being held and transferred that to you. 

Again, not sure what state you're in but chances are your PM company is wrong. That money is yours to use for deductions/damages.