Tennant Suing for Deposit (TX)

General Landlording & Rental Properties

Tennant Suing for Deposit (TX)

Member since 2023 · 6 posts · 4 votes

Tennant of 2 years did final walk-through with landlord in person, noted various issues like fridge/oven/microwave cleaning & one missing garage key. Some burnt out light bulbs, dirty unchanged air filter, dust/hair on windowsills, one bedroom door lose, and missing undercounter light cap cover.

Landlord does cleaning, repairs, painting, replacing light bulbs/air filters/keys, etc. Spends about $1500 to make-ready for next tennant.

Tennant is having disagreements with landlord over deductions of deposit. Original deposit was $1800, of which $340 was returned. Took just over 60 days for landlord to return deposit. Tennant reaches out complaining, as he was expecting $1000+, requesting at least half of deposit. Landlord offers an additional $250. Tennant is not happy, does research and finds that because it's over 30 days, Texas law states he could be owed 3x deposit + legal fees. Tennant sends demand letter for 2x deposit threatening to sue in small claims. Landlord is now offering an additional $700, which is what the tenant originally requested, but tenant is refusing and now wants minimum full deposit back.

What should the landlord do in this situation?

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Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes

2y

@Jack Wang The landlord should have known the deposit return laws of his state because the tenant could very well win treble damages now. Of course the tenant is going to take this all the way as he stands to make a lot of money from the landlords mistake. If the landlord wants to avoid court and a judgement against him, I would return the full deposit and call it a lesson learned. Then I would get very familiar with the laws of your state so you can avoid this mess in the future.

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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
2y
You'll probably lose.
1 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y
Light bulbs and air filters?? Who cares?!? Lose the battle, win the war. $1500 turnover costs, which could be about $100 in material costs as I read it if you did the work yourself, is the cost of doing business.
You're going to have to pay up to get out of this one. If the tenant has lawyered up, it's too late to do what you needed to do a long time ago and call it even. It's gonna cost you. Do your best to settle for $2000-3000 and call it tuition to the school of owning rental property.
3 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
2y
You'll lose in court. Send him his check for $1000. If he cashes it consider it acceptance of his $1000 request. If he doesn't cash it, send him the whole thing and be happy you are now educated on the law. Based on your description I think you overcharged him for damages.
0 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
Everyone thinks managing is easy until something goes wrong.
Send the funds tenant wants and write it off as a hard lesson learned.
Logical Property Management4.9453 Reviews
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Joe Scaparra
Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes
2y
Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.
0 Reply
Steve Tom
Round Rock, TX · Member since 2019 · 31 posts · 7 votes
2y
I am kind of in a similar situation with a tenant who left in around outter Austin area. I posted in https://www.biggerpockets.com/forums/52/topics/1150467-pet-d...
I have simialr questions on responsibilities too.
The difference is that its a $200 pet deposit which we are using to cover the reapir of the property, since the security deposit was used to cover the penalty for the tenant breaking the lease early. (I know it was a bad move on my part, but I was trying to make it easy for the tenant... before really had the time to check on the condition of the house after they left.)
It is still three days before the 30 days period.
So far beside the pacthing, painting and cleaning, tenant only agreed to pay for the broken fridge shelves and the door weather stripping that was torned by his pet, with the pet deposit. Thats total of less than $60.
I had to pay for new paints and brushes. The Roman Shade he broke and then attempted to fix made it became unusable, so I had to buy a new one. Lastly, the dirty air filter had caused AC to leak because the air flow stopped and coil froze. Also the HVAC drain line was blocked (The HVAC tech said the drain line was clogged because the tenant didn't regularly pour vinegar solution down), water couldn't drain and leaked out of the AC unit.
Can i use the pet deposit on the above? Or I am out of luck?
0 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
2y
Quote from @Joe Scaparra:

Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

Spot on, if the check was cashed. If no forwarding address is left, the landlord is required to send to the last known address. (the vacated unit)
0 Reply
Joe Scaparra
Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes
2y
@Steve Tom, You have a good question. If I read your question right, tenant cost to repair property exceeded deposit. Can I use the Pet deposit to help cover the cost. I would say yes, you either take it from the pet deposit or send them a bill for the remaining cost of repairs. One could also logically conclude that pet hairs contributed to the clogged air filters ect.
Now for the future, may I recommend you Quit Charging a pet deposit! Instead Charge a non-refundable PET FEE! I charge $300 per pet. Most if not all apartment complexes charge a NON-REFUNDABLE PET FEE, and some also charge a monthly pet rent.
0 Reply
Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
2y
Quote from @Henry T.:

Quote from @Joe Scaparra:

Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

Spot on, if the check was cashed. If no forwarding address is left, the landlord is required to send to the last known address. (the vacated unit)
That is absolutely not correct in Texas. A landlord is not required to send the deposit to the last known address. Texas law states that the 30 day clock to account/return the deposit does not begin until a forwarding address is given. There is no requirement to do anything until that time
1 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
2y
Quote from @Greg H.:

Quote from @Henry T.:

Quote from @Joe Scaparra:

Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

Spot on, if the check was cashed. If no forwarding address is left, the landlord is required to send to the last known address. (the vacated unit)
That is absolutely not correct in Texas. A landlord is not required to send the deposit to the last known address. Texas law states that the 30 day clock to account/return the deposit does not begin until a forwarding address is given. There is no requirement to do anything until that time

I'm with greg here. No duty to send, and regarding the partial cashed check deposit.
That really depends on other information, was there a letter and accounting included with it? Did it mention this as a final payment? Too much could influence the outcome
1 Reply
Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
2y
Quote from @Greg H.:

Quote from @Henry T.:

Quote from @Joe Scaparra:

Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

Spot on, if the check was cashed. If no forwarding address is left, the landlord is required to send to the last known address. (the vacated unit)
That is absolutely not correct in Texas. A landlord is not required to send the deposit to the last known address. Texas law states that the 30 day clock to account/return the deposit does not begin until a forwarding address is given. There is no requirement to do anything until that time

Thank you pointing that out. It's required in Seattle, but we all know Seattle is one of the worst to be a landlord. I think I would like Texas.
1 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
2y
Quote from @Henry T.:

Quote from @Greg H.:

Quote from @Henry T.:

Quote from @Joe Scaparra:

Hold Up, NOT SO FAST! First let me say I am not a lawyer so this is for informational only!
However, let's review the facts. Walk thru completed but expectations were not met. Landlord took more than 30 days to give a detail report of the deposit. Yes in this case the landlord opens himself up to 3X penalty! However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit. IF so the judge may dismiss the case. However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty. This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit. The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

Spot on, if the check was cashed. If no forwarding address is left, the landlord is required to send to the last known address. (the vacated unit)
That is absolutely not correct in Texas. A landlord is not required to send the deposit to the last known address. Texas law states that the 30 day clock to account/return the deposit does not begin until a forwarding address is given. There is no requirement to do anything until that time

Thank you pointing that out. It's required in Seattle, but we all know Seattle is one of the worst to be a landlord. I think I would like Texas.

Come on down, plenty of deals
0 Reply
Julien J.
Investor · CO · Member since 2016 · 757 posts · 1k+ votes
2y
@Jack Wang

Lose the battle, win the war.

Going to court or hiring an attorney will cost you more in the end.
Live and learn, dive deep into local laws and improves your processes.
0 Reply
Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
2y
Quote from @Julien J.:

@Jack Wang

Lose the battle, win the war.

Going to court or hiring an attorney will cost you more in the end.
Live and learn, dive deep into local laws and improves your processes.

Lawyers are the only ones who win (both outcomes)
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