Do we return security Deposit when Tenant gets evicted ?

Question

HI,

We have a tenant that is being evicted for having pets in the house. The courts pass the judgement on behalf of the landlord for $1700 plus lawyers fees. She has paid her last few months rent. The tenant has planned to move out and requested for a walk through of the property.

The lease states that the landlord can hold tenant liable  for court judgement plus lawyers fees if tenant did not comply with the lease.

Can landlord not return the security deposit ($950) in return of court judgement plus lawyers fees because the Tenant has not comply with the lease ?

James

Fred Heller · Answer

Hi James,

I'm not a lawyer so I can't give legal advice.

Texas is known as a landlord friendly state, and maybe it is compared to other states. But there are also strong protections in place for the tenants as well, especially when it comes to the return of a security deposit.

If you deduct from or keep the security deposit, you are required to state specific reasons for doing so. And the reasons must be actual damages. And the tenant does not automatically forfeit the security deposit if he breaks the lease.

Only a lawyer can give you the right answer, and only you can decide if it's worth involving a lawyer for $950. If you're a licensed real estate agent and a member of TAR, they have a legal hotline you can call to get an opinion on this specific question.

If it were me, I would return the deposit if the tenant paid the judgement and left the residence in good condition. If not, I would deduct the deposit from the judgement and then decide whether or not it was worth it to go after them in small claims court for the balance.

I've attached a couple of links. The first one is the Tenants Bill of Rights from the Attorney General's website. The second is a post on security deposits from the Austin Tenants Council.

Good luck!

https://www.texasattorneygeneral.gov/cpd/tenant-ri...

http://www.housing-rights.org/security_dep.html

Account Closed · Answer

Each State has a law regarding how many days you are to return a Security Deposit so check your state law.

You will deduct whatever is owed to you from the tenants Security Deposit and send the Tenant the remainder of the money owed to him or her, along with an itemized list stating why you kept all or part of the Security Deposit.

Bottom line is you only get to keep what is owed you, per the Judgment, and nothing more. And you have so many days to return it or may triple the Security Deposit. (once again check your state laws regarding timelines)

Nancy Neville

Marcia Maynard · Answer

Your lease (or MTM rental agreement) should contain a clause about the return of the security deposit, what can be charged against it and the time frame for doing so. This should be consistent with the laws for the jurisdiction in which the rental property is located. You need to be familiar with your lease agreement and with the landlord-tenant laws for your jurisdiction. Know them better than your tenant!

Since your lease covers this, you are in a good position. But the security deposit will not be enough. Go ahead and complete your final report regarding the security deposit and what it was used for. Then bill the tenant for the difference. If you have trouble collecting, take the account to a collection agency. Stay on top of it.

Until you recover the full amount owed, try to keep track of where your former tenants have moved to make it easier to recover your money. It is easier to collect on a court judgement than it is to collect from a bill you send.

From our experience, the eviction court judgement will not cover property damages and extra cleaning fees which are discovered after we regain possession of our property. So, we use the security deposit to pay for these first.

James Kandasamy · Answer

@Fred Heller Account Closed Thanks for the responses. I found a clause on the lease that stated specifically that the security deposit can be used for recovering court cost when the tenant has not complied with the lease.

James

Account Closed · Answer

Yes, here in TX you have 30 days from when the tenant moves out to return any security deposit owed. See

http://www.nolo.com/legal-encyclopedia/texas-secur...

I personally prefer owner financing all my houses, too many tenant headaches....

Jonathan Key · Answer

@Fred Heller Thanks for the great links!

Eric Black · Answer

Hello James,

I'm not an attorney however I would recommend speaking with one, or a reputable property management company at least. It sounds like you may be able to withhold the deposit to cover any repairs, as would be typical, as well as any incurred legal fees. Again, I would check with an attorney on this.

Hopefully and attorney or PM in the Austin area will be able to respond to save you the cost of an attorney consultation.

Best of luck!

Eric

Do we return security Deposit when Tenant gets evicted ?

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