How much of the security deposit you would hold?

Question

Hello all,

Here are the facts:

1) Tenant is on a month to month lease.
2) Rent is due on the 1st and considered late on 4th.
3) Late fee is $50 plus $10 for each additional late day.
4) The tenant didn't pay November rent and stopped responding to calls.
5) After a lot of calls and texts, the tenant finally moved out and gave me the keys on 11th.
6) The apartment was left in good condition.
7) The next tenant moved in on 19th.

Rent and security deposit is $425. I came up with $50, by subtracting the prorated rent from Nov. 1 to Nov. 18 and late fee from Nov. 4 to Nov. 11.

How much (if any) of the security deposit would you give back?

Thanks!

Jon Holdman · Answer

Math error on my part.

Greg B. · Answer

Some states consider deposits are only be used for ensuring maintenance and repairs.  Deposits may not be used for rent or late fees.  It all depends on your lease and the local/state laws.

Silvio Brigliadoro · Answer

Because your lease stated that the tenant is required to give a 30 days notice, you could have deducted that month's rent from the deposit, the issue I see is that you were able to rent the apartment that same month, and in most states you can't collect double rents, I would check the tenant-landlord laws of your state. 
 
I would charge for actual damages for loss of rent (1st-18th) and add a few extra fees: cleaning fee of the rental unit, repair of damages if any, the costs you had to obtain the replacement tenant such as advertising fees, document preparation fee, etc. Then send your former tenant an itemized statement of the deductions.

Sharad M. · Answer

How did you come up with $225 partial rent? I come up with $255 ($425/30 x 18).

Jon Holdman · Answer

My lease states there is a fee specifically for failure to give proper notice.  I've verified with my attorney here such a fee is legal.  Its equal to the deposit, so in this situation they would have received nothing back.

I am still required to give them an accounting of their deposit.  It would have looked like this:

improper notice fee:  $425
late fees: $120 ($50 on Nov 4, $10/day Nov 5 to Nov 11)
Partial month rent: $225 (Nov 1 to Nov 18)
Any damages (seems like there are almost always at least broken mini-blinds and missing/burned out light bulbs)

I'd add that all up, subtract the deposit and say they need to send me a check.  Never had a check actually appear, but I suppose it could happen.

In your case, without the improper notice fee, and assuming there were absolutely zero damages, I'd have sent back $80.

Dion DePaoli · Answer

Then you did the right thing.  You offered so you are a nice guy.  The tenant likely doesn't have an attorney to begin with and no attorney that you have to worry about is going to hear that story and take on the job.

As the landlord, be the master of your documents.  Know them inside and out.  They are typed in English and easy to understand.  Most tenants don't read and come up with wacky ideas the counter battle is you should read them and know them.

Poor guy, could have had $50 extra dollars for Christmas.

Sharad M. · Answer

I believe I am not responsible to return any security deposit, but I was trying to be nice and give him $50, but the tenant threatened to take legal action, so I just told the tenant to have his attorney call me.

The lease stated that the tenant is required to give a 30 days notice and the tenant can not use the security deposit as last month rent.

Dion DePaoli · Answer

Presumably the previous tenant was required to give notice about moving out.  If they didn't comply with this they are in breach of their contract.

The event of you finding a new tenant quickly is not relative to your contract with the previous tenant. The terms and conditions for your agreement with your previous tenant are in that contract.  If they breached it, they breached it you do not have an obligation to give anything back.

That being said, it is December and Christmas is around the corner...are you feeling nice or not?