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Updated over 3 years ago,
Security/ Damage Deposit
I have two questions for your opinions and comments. The scenario: Tenant pays $500 deposit upon move-in. Throughout the years of tenancy, the rent has increased to $600 per month, but the deposit wasn’t ever increased. Tenant moves out (legally) without paying the last month’s rent and leaves about $300 in cleaning fees and damages.
1. Does the security/ damage deposit apply FIRST to the unpaid rent or the cleaning fees and damages?
2. If the deposit first applies to the unpaid rent, is it really fair for the management company to deduct their fees when they DIDN’T actually collect the rent?