Post Fire - Release Tenant's Deposit?

[Eric A.]

The fire investigation has yet to be concluded, but so far it's pointing to an accidental fire and my tenant is already asking for his deposit back.

My feeling it's too early to release the deposit until I see a finalized report and the matter comes to a conclusion. Fact of the matter remains, it was his items that started the electrical fire. Could it be the home builder's liability? Hard to say at this point and it will be a long while until we get to that point.

Legally, what can I do and can't do here?

Shouldn't his renter's insurance provide him "assistance" if he needs the money to rent another home?

thanks.

[Jon Holdman]

What do you mean by "discuss the condition of the house"? If its unlivable, the tenant needs another place to live. Its not as if you're going to be able to do the usual walkthough and deduct cleaning or repairs from their deposit. Nor is it likely the deposit is going to make much of a dent unless the damage is very minor.

That lease clause says, to me as a non-lawyer, that if they can't live there you're not going to charge them any rent. If you rebuild or repair the place, their lease is still in force, though. Realistically, if that takes more than a few days or a week, then they will have to find another place to live.

You probably have a time limit for returning deposit after the lease is terminated. Assuming the lease is terminated as of the date of the fire, then you would have to get the deposit back, or an accounting of the deposit before the deadline.

I really think you need to speak with your lawyer and get his or her advice.