If only partial deposit is received, is lease agreement still valid?

Question

Hello all,

I did what I should not have done (I know); it worked out a few times before that's why. Here is the situation.

March 31, A prospective tenant, who previously called and talked to me about a month ago, called again and decided to rent my place. He wanted to move the next day but I said I still have someone lived there. He said that was ok. He needed a place, blah blah....... At the end, we agree with $1600 rent/mo, except the 1st month is $1000 (because my previous roommate still there)

April 1, I signed agreement (CA standard form) with my new tenant. The agreement said I have received 1st month rent of $1000 and $ 1600 security deposit ($2000 in cash and $600 in check). However, tenant asked me not to cash that check until the April 15th (because someone else still in the unit). On the 15th, the check was bounced. And until now (April 25), I still have not received the second half of deposit.

Is our lease agreement valid? I want to terminate this lease. How to go about that? I'm think about not to accept the $600 (if he were to pay), and give them 30 days notice to move. Can I do that?

Thank you for any input

Account Closed · Answer

Once you let him move in, whether he has paid any money or not, you have to start eviction proceedings to get him out. So, I agree with the two attorneys you talked to . Serve him a 3 Day Notice. If he doesn't move out, file for eviction.

If he is just month to month, all you have to do is give him a 30 day notice to move out. You don't even need a reason. But, if you think he won't go, start the eviction process now.

John Thedford · Answer

In some states, if the recipient of a check agrees to hold it for a specific length of time and then it bounces, the courts have held this to be a LOAN. This could leave the payee having to sue to recover the funds and the states have held this is not a theft but rather a civil matter.  Laws vary by state. This may or may not be the case in CA.

Marcia Maynard · Answer

The lease is valid if you have the legal right to enter into a rental agreement for this property. If so, you need to follow landlord-tenant law. Did you notify the tenant about the bounced check? What did he say was the reason this happened and did he say how he was planning to remedy this? Also, you said "my previous roommate".... hmmm, are you the landlord or are you a tenant who is subletting one of the rooms? If the latter, has the landlord approved for you to do this? Later in this thread you say you talked to two attorneys and they gave you advice as to what to do; where they attorneys who specialize in landlord-tenant law?

Troy Fisher · Answer

he definitely sounds like a professional tenant, did you call his references or do a background check on him?

I'd wager the 2k probably was part of a cash for keys deal.

Pat Patamaporn · Answer

Thanks to all.

I talked to 2 RE lawyers. They both said I need to give them 3-day notice to pay or quit. I cannot just terminate it.

@ Matthew Paul: I don't know if I can do anything about criminal offense for bad check. (I'm going to check it out)

@Cliff Odom @Sergio Garcia That's what I thought but the lawyers said it differently. I'll find the 3rd one.

Sergio Garcia · Answer

Have you talk to the prospect  about the bounce check? I believe the transaction is avoid (lease) as you didn't get money that was agreed to. You probably need yo get some legal advice on where you stand on this this issue.

On all of my first transaction with any tenant is a cashier check/ money order drawn from a local financial institution. No personal checks. Full amount upfront no negotiating at the time of the lease signing. Its business...I make it clear what's require at the time of the lease signing even I have a tenant still living at my rental property.

Cliff Odom · Answer

You don't have an agreement because you don't have any money.  You never take a check for deposit and first months rent only cash or certified funds.  You don't know these people.  Now that they have bounced a check you can never do business with them ever ever ever.

Mindy Jensen · Answer

This guy has trouble written all over him. Get out as soon as you can. Did you do a background check?

Matthew Paul · Answer

bouncing a check is a criminal offense , tell the guy that you want to void the lease or you will prosecute  for passing bad checks .

John Thedford · Answer

Talk to a CA lawyer.

If only partial deposit is received, is lease agreement still valid?

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