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Updated over 5 years ago on . Most recent reply

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Charlie Moore
  • Rental Property Investor
  • D.C
102
Votes |
501
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Question about tenant and using security deposit for rent

Charlie Moore
  • Rental Property Investor
  • D.C
Posted

Should you ever use security deposit for rent??!!???

- Tenant left the house at the end of the leasing term and ultimately owed me 250.00 in back rent and fees..

He is Now bugging me and Texting me for his security deposit of 800.00 back.

People are telling me, I should ultimately deduct the 250.00 and pay him the rest of the security deposit?

What would you do in this situation?

Most Popular Reply

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28,143
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41,235
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,235
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28,143
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

The security deposit should never be used for any charge during tenancy. If the tenant breaks a window or fails to pay a charge, go after them for the money or evict. Do not use the deposit. You  have to protect those funds as an assurance the Tenant will abide by the lease.

After the tenant vacates and the lease is terminated, then the deposit can be applied to unpaid charges, repairs, and cleaning. Unpaid charges could include rent, utilities, late fees, penalties, or whatever.

It's very common for tenants to complain, whine, or even threaten to sue your pants off. Ignore it. Follow the law and your lease. In this case, the unpaid charges can be deducted from the deposit and then you refund the remainder according to your state law.

You should seriously educate yourself on Landlord-Tenant law. Security deposits are one of the most common reasons Landlords end up in court. If you fail to do it properly, your tenant could be awarded up to 3x the amount. In a place like D.C. the courts are more likely to slam a Landlord that doesn't know how to obey the law.

Check out "Every Landord's Legal Guide" by NOLO. Full of practical advice and it includes specific laws for every state regarding terminations, deposits, and more.

  • Nathan Gesner
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