How to handle a tenant who is using their security deposit as a last month's rent

[Scott K.]

Hi all, we have two tenants (I'll call them Jane and Alice ) on a 1-year lease which began in December.

They did several things to violate our lease agreement which included 1) bringing in a 3rd tenant without telling me (let's call him Rick); and 2) Rick dumped garbage bags on another house we own (an Airbnb on the same property).

I wrote them 1.5 weeks ago saying this won't work out, and offered to terminate the agreement and waive any early termination penalties. They agreed to look for another place and we'd settle on a move-out date once they found a new place. At this time they asked that I pay them their security deposit on the date of any final inspection, to which I agreed.

With the rent due on April 1 and not having received payment, I wrote them today. They mentioned they found a place for a May 1 move-in and said they'd not pay April's rent, using their security deposit. They also agreed to let me show the place to new tenants with a 48-hour notice.

When I replied telling them they were in violation of the lease agreement and they'd accrue daily late fees they stood adamant in not paying rent. Moreover, they rescinded their offer to let me show the place.

I'm wondering what my next best moves are. I'm writing my attorney right now, but do I have any additional actions?

[Billy Daniel]

Don't allow the security deposit to take the place of rent.  For starters, I'm pretty sure it cant legally.  If they aren't paying rent, just proceed like you would any other month they wouldn't pay.  You might remind them that an eviction will be on their record and show up in future rental application screenings...