renters signed lease and now want to back out

[Sam Maradey]

I have a renter who paid a deposit, took possession of the keys and signed a 1year lease but now is talking about backing out and not moving in. Am I obligated to return their deposit?

[Robert Leonard]

@Sam Maradey How quickly can you rent the place to someone else? Yes, a lease is a contract that creates an obligation as detailed in the lease. I would look for a solution that allows you to give back at least a portion of the deposit after you recover any real losses.

You are in business and you should take your lease more seriously than buying a generic form off the shelf. You're going to need some advice from an attorney before you do anything in this situation. I would also ask for a good lease that is written for your particular state while you're talking to that attorney.