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Updated almost 2 years ago on . Most recent reply
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Security Deposit Forfeiture?
My tenants are currently delinquent on one month's rent. We have begun eviction proceedings. My question, however, is: Does the tenants' breaking of the lease forfeit the 2 months of security deposit? As in, does the law state that once a lease is broken by tenants, they forfeit their security deposit? Or are they still owed whatever is left after I cover the 1 month rent?
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- Real Estate Broker
- Cody, WY
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Quote from @Oren Peleg:
It's important to learn the law, preferably before you need it.
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
You have an eviction pending. Once the lease is terminated, your clock starts ticking for return of the deposit. You can apply the deposit towards unpaid rent, cleaning, and repairs. If your lease does not allow for a forfeiture of the deposit then you cannot automatically keep it.I recommend you work with an attorney to change your lease and include a forfeiture clause, if legally allowed.
- Nathan Gesner
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