Tenant gave 30 days, refusing to pay last month rent, saying use security deposit
Investor · Member since 2022 · 157 posts · 162 votes
Tenant gave 30 days, refusing to pay last month rent, saying use security deposit
Most Popular Reply
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
11moWhen that happens , I post a pay or quit notice on the door that rent is due , how much the late charge is and on the 5 th day if not paid I will file for eviction for non payment of rent .And that the security deposit is not a rent payment , but its for any damages and will be returned within 30 days if the house is in good shape . Then I would verbally tell them after that that I will call the new landlord and tell them that you didnt pay rent .
Tenants dont dictate terms to landlord
9 Replies
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes11mo
I've had it happen before although they politely asked and indicated there wasn't anything other than normal wear and tear which was true. I would want to meet them for walk through and key handoff if possible.
- Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes11mo
Your only choice is to go the collections route. Find a credit agency and put a notice on their credit report
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes11mo
When that happens , I post a pay or quit notice on the door that rent is due , how much the late charge is and on the 5 th day if not paid I will file for eviction for non payment of rent .And that the security deposit is not a rent payment , but its for any damages and will be returned within 30 days if the house is in good shape . Then I would verbally tell them after that that I will call the new landlord and tell them that you didnt pay rent .
Tenants dont dictate terms to landlord
- Rental Property Investor · Chicago, IL · Member since 2017 · 268 posts · 189 votes11mo
Quote from @George Red:
Any tips or tricks for getting last months rent from tenants when they've given 30 day notice and are refusing to pay last month of rent. Tenant is saying that the security deposit should be used for last months rent (although explicitly not allowed per the lease). If they are in deed moving out in roughly two weeks... is it worth the effort of filing for eviction etc.. or how do you approach these types of situations? Not classy on the tenants part and they've otherwise been pretty good tenants.
Trying to protect my downside in case they don't actually move out at the end of October (although I did get a landlord reference email weeks ago so I believe it's legit they're moving out), also not wanting an upset tenant to trash the unit on their way out being spiteful... trying to walk the line here. Any advice/tips or tricks you've used in similar situations?
Thanks in advance.
This is a tough situation that I have encountered many times. Once tenants decide they are ready to leave, you can loose some leverage. However most people don't want an eviction on their record. So, I do agree with hedging your bets and serving a notice to pay or quit.
The issue with them not paying rent and you using the security deposit is that they have zero incentive to clean the unit and if they damage it, you have no additional funds.
If it were me, I'd serve them an eviction notice and then mark them as owing on a credit reporting site(I use Front Lobby). Once they go 30 days past due, they are reported to the credit bureaus. They still might not pay, but there's a good chance they will. Most people don't want an eviction on their record or it showing on their credit report. You also don't necessarily have to file it right away, you can wait a bit and see what happens.
I understand wanting to walk the line, however you'll likely encounter this again. Each time, the tenant will dictate the situation. Withholding rent is a nuclear option that the tenant went for, so in my opinion you should do the same. - Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes11mo
This is the exact reason why you never collect just one month rent as a security deposit. Before the Communist State of California outlawed it, I used to collect around 125% of monthly rent. That way I have extra funds to deduct for damage and late fees for that last month of missed rent.
- 11moPatrick O'SullivanBusiness MemberProperty Manager · Phoenix, AZ · Member since 2024 · 534 posts · 205 votes
@George Red This kind of scenario is frustrating for sure, especially when the lease clearly states the security deposit can't be used for last month's rent. I've found it's best to stay consistent with enforcing the lease, even when tenants are on their way out.
Serving a formal notice like a Pay or Quit helps document your position and keeps the pressure on. You don’t necessarily have to follow through with eviction if they vacate peacefully, but it can be a useful tool to protect your timeline and show that you're not waiving any rights.
Also agree with others here. Using the deposit for rent leaves you exposed if there’s damage or cleaning needed. If they leave the place in great shape, great. Refund accordingly. But if not, you’ll be glad you didn’t let it slide.
For future tenants, collecting a larger deposit where legal or even considering last month’s rent upfront can help avoid this altogether.
Hope the move-out goes smoothly and they leave the place in good condition.
get MULTIfamily Property Management4.7221 Reviews - Property Manager · OK · Member since 2024 · 98 posts · 74 votes11mo
You can do the following:
Remind & Educate: You should remind the tenant (in written form via email or text) that per the signed lease, the security deposit cannot be applied towards the last month's rent. It is to be held for damages or unpaid bills after the tenant moves out.
Offer the Fair Deal: You can say, "If you pay the last month's rent as agreed to, I will return your security deposit promptly, minus any reasonable charges for damages above normal wear and tear, after you move out and return the keys." This provides a solid incentive to encourage payment.
Protect Yourself Now:
Document: ASAP, provide detailed photographs or video of the condition of the unit. Send them a complete friendly move-out checklist as well (with cleaning requirements and key return info). This serves as an indirect reminder to the tenant that you will be paying attention to what is returning.
Prepare if they Go Over: If the tenant is still in possession of the apartment after the deadline, be ready to serve official "Notice to Quit" or "Pay or Quit" documents, as required by statute in the local community. I personally would not bother with filling out a rent overdue eviction at this point unless they are adamant about leaving soon.Avoid Escalation: Frustrating, but please remain calm and professional because any aggression only increases the likely damage to the property. Keep your efforts focused on returning the unit to its proper state and securing a move-out. You may pursue this rent later through small claims court; however, again, that may be more trouble than it is worth if the amount is low enough.
In fact, you are best served to identify the easiest way to get the unit back and re-rented as quickly as possible. The vacancy or repair cost will probably exceed that last month's rent. Good communication and process documentation will be your best friends.
- Investor · Member since 2022 · 157 posts · 162 votes11mo
Thanks @Scott Nachitilo and others that contributed. I ended up connecting with a lawyer who has handled other issues for me and she said basically I waited too late in the month to start the eviction process and to sit tight as it seemed the tenant was actually moving out, but if they weren't out by designated day, circle back to start a formal eviction.
What actually happened is that the tenant moved out on the date indicated and left some trash but the unit was generally clean and left in good shape. I called the tenant and they actually came back to pickup the trash/debris in question... I'll be out a few hundred on small repairs but nothing crazy. During their tenancy they were good on payments and communication so I didn't think it would all fall apart at the end but wanted to cover my bases. Lessons learned on my side and for anyone that might come across this in the future, amending my process per below.
* When a tenant gives notice, send a formal letter detailing that security is not to be used as last months rent and informing them eviction process will commence if last month not forthcoming.
* Ensure them that security deposit (minus expenses) will be repaid within 7 days (much faster than statute) so they know we're on the up and up too.
* Try to do a preliminary walkthrough prior to them moving out so if they want to fix/patch anything prior to the final move out, they can.
Lessons learned and thanks for the advice all.
- 10moPatrick O'SullivanBusiness MemberProperty Manager · Phoenix, AZ · Member since 2024 · 534 posts · 205 votes
Quote from @George Red:
Thanks @Scott Nachitilo and others that contributed. I ended up connecting with a lawyer who has handled other issues for me and she said basically I waited too late in the month to start the eviction process and to sit tight as it seemed the tenant was actually moving out, but if they weren't out by designated day, circle back to start a formal eviction.
What actually happened is that the tenant moved out on the date indicated and left some trash but the unit was generally clean and left in good shape. I called the tenant and they actually came back to pickup the trash/debris in question... I'll be out a few hundred on small repairs but nothing crazy. During their tenancy they were good on payments and communication so I didn't think it would all fall apart at the end but wanted to cover my bases. Lessons learned on my side and for anyone that might come across this in the future, amending my process per below.
* When a tenant gives notice, send a formal letter detailing that security is not to be used as last months rent and informing them eviction process will commence if last month not forthcoming.
* Ensure them that security deposit (minus expenses) will be repaid within 7 days (much faster than statute) so they know we're on the up and up too.
* Try to do a preliminary walkthrough prior to them moving out so if they want to fix/patch anything prior to the final move out, they can.
Lessons learned and thanks for the advice all.
Thanks for circling back and sharing how things played out, @George Red. It sounds like it ended as smoothly as you could have hoped, given the circumstances. Great to hear the tenant followed through and even returned to clean up. That says a lot about the overall landlord-tenant relationship you built during their stay.
Really appreciate you outlining the process improvements as well. Those are smart and proactive steps, especially the formal communication about last month’s rent and offering a faster security deposit return. That kind of clarity upfront can really help avoid misunderstandings and keep things professional.
The preliminary walkthrough idea is also a great addition. Giving tenants a chance to handle minor fixes before move-out can go a long way in preserving goodwill and minimizing repair costs.
Glad it worked out, and thank you again for sharing the takeaways. It is helpful information for the rest of us.
get MULTIfamily Property Management4.7221 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.