Security deposit fraud?

[Account Closed]

So I have a section 8 Tenant that just moved in and paid the security deposit via money order. Section 8 is paying 100% so didn't collect anything for rent. Now a couple weeks later she calls and says that some organization.. united housing coalition? has cut a check to me for the security deposit. Apparently she originally barrowed the money from her aunt(so she says) and needs to pay her back. So shes wanting me not to tell this organization that she already came up with the money and to cash the check and give her the money so she can pay her aunt back. There was no mention of this until she called and said the check is ready to be picked up and she says don't tell them that we already paid the deposit.

So at first I thought this is ridiculous and have no obligation to even go get the check. Then I thought well ill go get the check and charge her accordingly to do so. Then take the remainder and put it as a credit on her balance towards the water bills/future tenant portion of rent that she probably wont pay. If I do that I'm sure shell be upset and more likely to destroy the property. If I do cash the check, and either put it as a credit or give it to her I might be putting myself in the middle of legal trouble. Seems I should tell her we are not going to cash the check and she needs to call them and explain her situation and if they want us to return the check so they can cut a check to her aunt they can do that.

[Benjamin Timmins]

I wouldn't do any of that. I would use the original money order for the security deposit. That all sounds like one big scam.

The minute she's late with rent, file for eviction. She knows shell lose any section 8 she's entitled to if she gets evicted. Let her know right from the start you are not willing to play games with her.