Tenant's security deposit from Social Services has been declined - now what?

[Aly W.]

Hi folks,

I have a rental property that I was given a deposit to hold until on or about June 1st. The deposit was $500, credited towards the total security deposit, and the tenant told me she would be getting the balance from a social services agency once I provided her with a copy of the C/O to send them.

That took an extra week to get, but I gave her the C/O and she submitted it to the agency yesterday. She was informed today that funds are no longer available, and she can re-apply in 2 weeks.

The tenant has a job, and has asked if she can pay me the balance of the security deposit throughout this month, then move in on July 1st with that month's rent. I've had rental assistance tenants who were able to get their security deposit paid to me immediately upon providing the C/O. In this case, and maybe because of the economy, it obviously isn't guaranteed.

My dilemma is that I stopped advertising/showing the house when she gave me the deposit, and the thought of starting all that again is not appealing. But neither is having the house empty for another 3 weeks.

I'm thinking of asking for not only the balance of the security deposit ($755) but perhaps one week of pro-rated rent for this month ($196). So she would have to pay $951 from now until July 1st, at $317 a week. Then July 1st's rent in full, $850, on that day.

Any other thoughts? Thanks in advance!