Tenant moving out

[Devon Curney]

I'm still new to real estate and I would appreciate any advice I could get.  My mother just bought a duplex last year in Chicago with a tenant already living there.  The tenant told her she was moving and will live out her next two months with her security deposit. We don't know what to do in this situation. The old landlord never gave her the security deposit we don't know if she even gave him the deposit.  What should my mother do take her to court or just let her leave?  What should the next action be? Thanks in advance. 

[Mike Wood]

I never let my tenant use the security deposit for the last months rent.  It there to ensure that the tenant does not damage the property and returns it in good condition.

You mom should know if she received a credit at the sale for the security deposit, there definitely should be a trail on that.  If she did not receive a security deposit, then she needs to get in contact with the seller and find out if one was collected, as I am sure it is now your mom's problem to give back any security deposit.  Also, most deposits are one months rent, and most states limit the amount of deposit that can be taken (although Illinois does not appear to have a limit), so I would question that deposit amount of two months rent.

I would recommend talking to the tenant and explaining that they can not use the security deposit for rent. If they refuse the pay rent, its time to talk about eviction.