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Updated over 4 years ago, 05/25/2020

User Stats

42
Posts
70
Votes
John D.
  • Investor
  • Wake Forest Area NC
70
Votes |
42
Posts

Legally apply deposit as June rent with tenant approval?

John D.
  • Investor
  • Wake Forest Area NC
Posted

Please don't engage this post to debate whether this is good business, that is a completely separate question and let's not address that here. My collections are almost normal, off by a small percentage. Our courts are closed until July at least, with a backlog of pending evictions, I have 4 in the works. At this point, no need for concern, however, the situation is fluid. 

Can members weigh in on their thoughts? Not interested so much in the business wisdom of doing so as this represents a "worst case scenario." Members, is a lease amendment such as below legal and/or ethical? Share your modifications.

Note: we inspect the interior of my units and change filters every 3 months so my tenants are accustomed to inspections and do a good job of protecting our property normally, even if some are poor housekeepers.

"This agreement is subject to a satisfactory home inspection by Landlord to assess any tenant damage occurring prior to this agreement. 
 Landlord and tenant hereby agree to apply the tenant security deposit to August(whatever is the darkest hour of collections)  2020 rent. It is further agreed that the Tenant will make installment payments of $000 bi-weekly (again, this will vary) to the Landlord security deposit account until $000 is replensihed. It is agreed that this money shall go directly into Landlord trust account and will not be commingled with Landlord operating funds until such time as tenancy has ended and security deposit reconciliation is completed, according to lease terms. Failure to make complete and timely installments will be considered default by the tenant, as described in the lease of 00/00/2020 and Landlord shall retain all rights and remedies prescribed therein."