Refunding Security Deposit

[Shar Day]

Hi all, need some advice on how to go about a situation.

I have some of tenants, in a unit that their lease would be up at the end of this month (Jan 31). I currently have problems with issues of smoking in the house (violated lease), noticed damage to the front door's lock, leaving old furniture in the back yard (killing a big spot of grass, because it was laying there for about a month or 2), getting notices from the HOA about neighbors complaining of possible illegal activities at the unit.

I talked to some neighbors and was assured things have calmed down recently (i guess after i had a talk with them about the foot traffic). So a day before I planned to renew the lease, i had a water leak (3rd one in 4 months). I figured this will be the best time to kill 2 birds with one stone. 1. fix all the pipes in the unit (unit needs to be empty), 2.) since their lease is over in 2 weeks, do not renew the lease and look forward to getting better tenants.

I notified them that I would not be renewing the lease and to make arrangements to vacate. I know 2 weeks is not enough time to find another place. I am willing to do a month-to-month (not more than 2 months, is that reasonable?) for another month or 2 so they can find accommodations. Now, since all these developments of vacating the unit is all of a sudden to them, they said, they have not saved enough for a security deposit for the new place, and if they can get their current deposit in order to use for the new place.

My instincts were NO!!! I know I will be having issues when they vacate, and things I have to fix. Is there a way to handle this to make myself feel secured and them happy so they can move on.

Thanks.

[Dana Dunford]

@Shar Day -- Some recommendations:

• Security Deposit Refund: It sounds like you're going to need that security deposit, so don't give it back to them as an incentive to move.
• Notice to Vacate: Check your state's laws and your lease. 2 weeks does not sound like enough time, as you may need to give 30 days notice. Either way, give them proper notice (what's considered fair according to law) and then you won't feel bad about their situation.
• Security Deposit for Next Rental: If they don't have enough money / a cushion in their bank account to afford the security deposit on the next place, then that's a bad sign. They are either (1) living above their means or (2) trying to get you to play fool and give them their security back since they most likely know the condition of the place doesn't warrant it.
• Initial Walkthrough: @Jeff B. is correct on this one. You should do an initial walkthrough with them to outline what is not considered normal wear and tear. Give them the opportunity to fix it before they leave, otherwise they will know (in advance, avoiding issues later) that it will be deducted.

Good luck!