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Updated about 10 years ago on . Most recent reply
Tenants not paying last month's rent. How to avoid this?
Hi
I have had a few tenants in Florida who pay for all the months during the lease but then don't pay the last month's rent and the move after that. They ask me to take that from the Security deposit. But luckily I didn't have any damages to my units so I am OK in those scenarios. If there are any damages to the unit then I would be paying for them.
Any of you having similar issues? Could you please suggest any ideas to get over this issue?
I am currently collecting Security deposit + first month's rent. Would it work if I made this into 12 payments as follows... for ex.. if rent is 1000/month then the total rent due would be 12 X 1000 = 12000. I would collect 1 payment as 2000 $ and the tenant would owe me another 10 payments of 1000$ each. $100 Admin /security deposit.
Just brainstorming ideas. Even in the above situation if there are damages to the unit then I have to put money out of pocket.
Please let me know any suggestions.
Thanks
Most Popular Reply
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When tenants move-in, we give them a written "Move-Out Instructions" packet to follow at the inevitable time when they plan to move. If they lose it, we give them another one as soon as we get wind of their intention to move. It includes a "Notice to Vacate" form for them to give us written notice of their intention to move with their anticipated end date. It also explains they must pay rent in advance for the last month and utilities in full for the entire last month. We also emphasize that security deposits can not be accessed during the term of tenancy. It is held strictly as security.
If a tenant tells us they want us to use the security deposit for last month's rent, we simply say..."It doesn't work that way. Your security deposit stays in the bank trust account until we have regained possession of our property." and "You need to continue to pay rent on time and utilities until the end of your tenancy." If we don't get our rent on time for the last month, they receive a 3-day legal notice to pay rent or quit. We charge a $20 posting fee with each legal notice we must serve.
Nip the behavior in the bud... using their security deposit prematurely is simply not an option... they need to know this from the start.