All Forum Posts by: David Long

Hi Paul, I'm from a different area than you, but the situation you are trying to prevent is common to all landlords and property managers.  We don't want a tenant or tenants with an approved application to back out and cost us critical marketing time for our property.  No one wants to lose money, right.  We, our property management company, requires payment of the security deposit (full month's rent) and signature(s) on the lease within 3 days of application acceptance or we proceed with marketing the property.  The lease constitutes a legal obligation and the security deposit funds encourage follow through with the commitment.

On the issue of cleaning fees -- One thing you need to have is a move-in check sheet.  Make sure the tenant(s) signs this and returns it to you or your property manager shortly following the move-in date.  If they do not return it to you within your specified time, record a memo in their file stating such along with your version of the move-in check sheet.  We charge non-refundable fees ($300)  when tenants have pets because this typically will result in some back end work on our part when tenants move out.  We also have a paragraph in our lease that requires the tenant to pay for professional carpet cleaning upon departure. 

Lastly, any time you are charging fees or making decisions about retaining security deposit funds, consult your state's landlord tenant law to help ensure your operating within the law.

Best Regards,

David

Hi J.N.  Sorry it took me a day to get back to you.  If your lease specifies month-to-month and each month begins on the first, I believe you can retain part of the security deposit for the unpaid rent for the remainder of the month beyond the 14th.  There is no WA state level issue with retaining all or part of a security deposit to cover unpaid rent.  We do it on a regular basis.  Just be sure to note it in your Letter of Holding to the tenant, so they are aware this is why the funds are being withheld.

Hey Greg, not sure how things work in Toronto, Ontario, but if tenants do need to leave early we help them do a lease novation and get "replacement" tenants.  We're also in a college town where a lot of the tenants are students so our market may be a little bit different than where you are at.  Also, families with children tend to move at the end of school years rather than in the middle of the school year in our location.  Winter vacancies tend to be much more difficult to fill in our area than the summer months.  Typically, the vast majority of our rentals are either extended or leased prior to the end of existing leases and our owners only have about 5 days without a tenant when transitions occur.  It's not 100%, but it works very well for us and our owners.

I'll add one more thing on leases in general.  My wife and I own a property management company in Bellingham and we steer all of our owners away from month-to-month leases because tenants can leave at the most inopportune times (like this time of year) when they are on a month-to-month lease.  We simply do not allow leases to lapse and go month-to-month.  We require a lease extension to be signed well in advance of the lease end date and if the existing tenants do not sign the lease extension by our deadline, we advertise the property and pre-lease it prior to the termination of the current lease.  All of our leases are term leases and end between June and July.  These are the transient months for relocating tenants and the best time to rent based on our experience.  It minimizes your vacancies.

I would be careful using a Tenants web site.  These types of sites are neither a legal document nor a proper legal reference.  What does the lease state about how the lease can be terminated?  Typically, if a lease is month-to-month, a 30-day notice will be required prior to termination.  Seattle may have some additional  stipulations, but if an attorney has reviewed your lease in the last couple of years it should hold the key to how and when a tenant can terminate a lease.  If your leases do not explicitly cover this area, you really need to get a better lease document.

What conditions are stipulated in the lease?  Most good leases do not allow the tenant to just pick up and leave.  They hold the tenant responsible for the entire term of the lease or until the landlord finds a new tenant.  If you have a good term lease, you can likely retain the entire amount of the deposit unless you rent the property prior to the time the deposit no longer pays for rent.  Read your lease closely however, and get legal help if you don't understand it.

 If your tenant was on a month-to-month lease, again read the lease and see what conditions are stipulated.

If you didn't have a lease, refund the money beyond 14 days because you won't have a leg to stand on in small claims court if the tenant takes action against you.  Next time, have your tenants sign a lease that you fully understand.