Tenants that try to use damage deposit as last months rent

[Andrew DeB]

So i've come across this situation for the 3rd time in 3 years of landlording. A tenant has financial issues and starts paying rent a week or two late every month. Then they tell me they are moving because they can't afford my property anymore and choose not to renew the lease when it comes up. They tell me they will pay rent a week or two late like the last couple months. After i bug them again for rent they tell me they need the money for the damage deposit on the new place and tell me to just keep my damage deposit as rent. Now i'm in a situation where i have no choice but to accept because where i live before i can evict someone i have to give a 2 week notice for non payment of rent. Plus i don't get any late fees.

Now if there is any damages or cleaning that they haven't done then i have to chase them down for money. As well my properties have basement suites so the utilities are in my name and they pay me a % of utilities. So for the final month there is always $100-$200 because i get the utility bill 2 weeks after they moved out. Normally i hold a portion of the damage deposit until i get the bill and refund them the remaining amount. Now i have to deal with the hassle of chasing them for at least a couple hundred plus anything for damages. If they choose not to pay it's not a high enough amount for me to bother going to court over so i just bite the bullet. How can i avoid this happening a 4th time?