Deposit returned after leaving without notice?

Question

I have a renter who was at 1 of my rentals since June 2019.

Deposit of $700

Rent of $800 all bills paid.

After the first year I tried to get them to sign a contract for another year.  The renter said they were planning on moving so would prefer month to month, I was ok with it since the pandemic hit that year 2020.  So they ended up moving out this month March 7th 2021.

They are asking to receive their full deposit back and are holding the keys and change the locks before leaving.  Kind of keeping the keys as hostage to get their deposit.

I explained to them that I need to get inside to see what needs to get repaired, I need to prorate the days for this month they were they because they did not give me this months rent. After that I can make an assessment of what was spent and give them the balance.

Now they are saying I am being un fair to them.  Note I stopped charging them late fees when the pandemic started last March 2020, oh and they were late at least a week or 2 every month.

Any feed back would be great.

Best Regards

Kyle J. · Answer

Perhaps someone from Texas will chime in (@Greg H. is the local expert), but I know where I'm at the tenant hasn't even returned possession of the property yet until they've given me the keys.  Especially if they've previously changed the locks and I can't even get inside without them.

So you might remind them that rent is still being charged as long as they keep possession (the keys), and until you get inside and do a walk-through/inspection and verify the condition of the property.

Also, I never provide security deposit refunds on the spot.  They always get mailed after the fact within the legal timeframe allowed.  (21 days after tenant returns possession of the property for my state, and I think 30 days for your state.)  However, I seem to recall from reading @Greg H.'s previous posts, that the 30 day clock in your state doesn't even START unless/until the tenant provides you a forwarding address.  Just something to be aware of.

Hopefully someone from Texas will jump in with more specific info/suggestions.

Good luck and hope it works out for you.

Jerel Ehlert · Answer

The duty to return unused deposit doesn't start until the tenants vacate the property and give a forwarding address.  LL then has 30-days to list damage deducted from deposit and return the balance.

Texas Property Code Sec. 92.103

Dan Maciejewski · Answer

The letting them slide on the late fees is understandable, and the fact that you're willing to pro-rate the rent is a big benefit to them -- in my area if rent is payed monthly, they owe the full month after one day.  I'd say you are being more than fair.

You definitely have to do a walkthrough, and them changing the locks and/or refusing access would violate the lease and they'd get a 3-day notice from me.

If they forgot, or you didn't give them the relevant law at lease signing (it's a good practice for the future), then send them the relevant law now, so they can see what their options are (giving you access and waiting for the deposit).  The law is pretty clear that they have to surrender the premises first.

From your state's landlord tenant act:

"the landlord shall refund a security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises.

However, Section 92.107 provides an exception to this:

Bruce Lynn · Answer

If they're not giving you the keys back, they're still in control of the unit, so you can and maybe should charge them rent until they return the keys.   Of course you should have a key to the unit and rekey it ASAP.  You can always leave a note for them to get a new key if you need to do that or they need access to the unit.

My suggest is never return deposit immediately.  Tell them you need time to inspect the property and write up repairs list and or get bids for repairs.  Typically in Texas you have 30 days to return the deposit and they need to leave you their forwarding address so you know where to send the check.

Adam Martin · Answer

My guess is they know something is wrong with the unit and they know if you see it it will eat the deposit.  I would contact them letting them know that it is your intention to return as much of their deposit as possible however until you can get access to the unit they are responsible for rent on top of any damages.  Each additional day is at a minimum $23.33 that is being withheld as daily rent, more if your lease specifies holdover rates and it is in their best interest to get you the keys. If they fail to return possession and have not paid rent for the month you are going to have no choice but to file an eviction for holdover as well as in my contract it is a violation of lease terms to change the lock.  It may be helpful for you to give them a timeline of when the remainder will be returned and absent any major damage 30 days is a lot of time.  I may agree that if they hand over the keys tomorrow that you will have a certified check by Saturday for what they are owed provided that there are no major damages that require an estimate.

Jerry Lucker · Answer

@Jesse Rangel

I’d check with my attorney - that being said I’d be inclined to drill out the locks, put in new ones, notify them that their actions have negated any hope of them getting their deposit back.

They may or may not have the moxie to fight you on this. Should add that I’m a hardball landlord and don’t put up with any baloney :)

Jim Cummings · Answer

@Jesse Rangel. Consult the Texas Rental Code for specifics, however it's my understanding tenant needs to give you possession of the property, return the keys, and give you a forwarding address before the 30-day provision to return the Security Deposit or an Accounting of the Charges from Security Deposit.

If you are going to be in the landlord tenant business in Texas this is the Bible for all actions.   An extract from Texas Rental Code below:When ending a rental agreement, a common question for tenants is whether the landlord has to refund the security deposit the tenant gave them at the beginning of the lease. Sections 92.101 through 92.110 of the Texas Property Code describe the legal protections tenants have when they pay a security deposit. Section 92.103 states:

However, Section 92.107 provides an exception to this:

Joe Splitrock · Answer

@Jesse Rangel important questions:

1. What date did they give notice to vacate?

2. What date did they state they vacated the property? I realize they have not given keys, but did they tell you the moved out on a specific date?

3. Have you checked if they disconnected utilities? This could be considered evidence of occupancy or non-occupancy.

Here is the bottom line, security deposit must be returned (full, partial or send them a bill explaining deductions) within a certain number of days of vacating. You need to establish what day they vacated.

You don't need the keys to enter your property. Have a locksmith meet you there. Enter the property, change locks and document condition with photos, etc. If the tenant gave you notice or told you they moved out and they are not living there, that is sufficient to regain control of the property. My advice is make sure the utilities are in your name and when you enter the property, look for beds or other evidence they are still living there. Minus any proof they live there, you just have an ex-tenant trying to extort a deposit out of you. Likely because there is damage at the property.

Theresa Harris · Answer

Tell them until you can inspect the place, you can't return the deposit.  If they are unwilling to meet you and know they are out, then post a notice, wait 24 hours (or whatever is required by law in your area) and then enter to do the inspection.  If they changed the locks, have them rekeyed and take that out of their deposit.  You can also tell them until you have the keys, they will still be charged rent as they have not officially vacated the property.

Deposit returned after leaving without notice?

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