Does the money belong to me or the Tenant?

Question

Hi all,

I took control of the house in February 5th and there was an existing tenant inside the house. At the time, the existing owner had a property manager who was looking over the house. The tenant paid the rent for the month of February to the property manager, then the previous owner instructed the property manager to give me the entire rent of February.

Everything seemed fine, but a few days later, I get a call from the tenant asking why they had to pay February rent, when they already pre paid for February at the beginning of the lease. Confused, I looked into the lease that I was given from the Property Manager after closing. I realized that I had been given the wrong lease. The correct lease did show that February rent was pre paid, but the Tenant paid the rent anyway on February. Now the tenant is requesting the money back and is taking me to court for it.

I think how things should have gone down, the original owner should have given me the rent money at closing, but he is living in Singapore and wants nothing to do with this transaction

What is the right move in this situation? How can I prevent something like this in the future?

Thanks all,

Chudi

Account Closed · Answer

Could be. But, what tenant have you ever known, including yourself, who paid rent twice for a month and didn't realize it? That story is just not reasonable. I'd call their bluff and tell them we'll let a judge decide and you can prove to the judge that you paid rent twice. And if the judge says I need to pay you back, then I will.

They'll probably start flapping their arms and waving their mystery lease around, but if you stay firm, I bet they'll back down. I also wouldn't accept any Photoshopped money orders from them LOL.

Account Closed · Answer

Chudi, I'd go ahead to court. Something is wrong with the tenant's story. No tenant is going to pay rent twice. And why are there two different leases, one saying the tenant pre-paid rent for February? Who gave you that lease? The tenant?

I'd go to court and tell the judge it doesn't make sense to you that the tenant would pay rent twice and not notice. And just politely tell the judge you would like him/her to figure out what is the truth and you will abide by his/her decision.

In other words, call the tenant's bluff. I smell a rat.

Jeremy Tillotson · Answer

Sue K. I think the rat is the seller, but I would hate to tell a judge, many states the tenant can get triple damages plus attorney fees, it may suck but pay it back or credit it to next months rent if they will. Tenants in place should always require an estopell to prevent this. no legal advice should be implied just from my experiences.

Jeremy Tillotson · Answer

@Chukwudi Motanya next time get an estoppel signed by the owner and the tenant. Just MHO I would agree to refund the money if they agree to drop the case.

Kyle J. · Answer

The scenario is a little confusing (at least to me) the way it's described, but the bottom line is that it sounds like the tenant paid February rent twice. Correct? If so, make it right and give the tenant back the extra rent they paid and/or credit it towards next months rent (if they're agreeable to that). Bottom line, they shouldn't have to pay double rent because things got mixed up at the closing, which they have nothing to do with.

Does the money belong to me or the Tenant?

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