Tenant terminated lease early: can I keep their Security Deposit?

[Roderick McCleary]

Hi - new Landlord here dealing with this situation for the first time. My tenants bought a house and terminated our Lease 4mos premature. I have their Security Deposit still (equivalent to 1 month's rent) and they have completely moved out of the unit as of 3/31. Due to COVID, I've had a hard time finding a new Tenant so now my Unit is vacant.

In the Lease we signed together, there is language that states: "if the Tenant moves out prior to the natural expiration of this lease, a re-rent levy of [equivalent to 1 month's rent] will be charged to the Tenant.".

Given these circumstances, am I legally allowed to tell the Tenant due to them breaking their lease early I will simply keep their Security Deposit? Any insight will be helpful as I want to communicate this to them today or tomorrow.

[Nathan Gesner]

If your lease doesn't specifically address this, I recommend a two-step approach. Contact the tenant and tell them they've broken the agreement and forfeit the deposit. Most will accept this and you're done. If they push back, tell them you will market the property and start looking for a new renter. You will hold the current renter responsible for rent, utilities, and other charges until a new tenant takes over. Then you will apply the deposit to the unpaid rent, ensuring you have no losses, and refund the remainder of the deposit, if any.