Options when renter lives off their security deposit and leaves?

General Landlording & Rental Properties
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Options when renter lives off their security deposit and leaves?

David Levy
Fair Lawn, NJ · Member since 2016 · 12 posts · 1 vote
Hi all, What are my legal rights when my tenant lives off their security deposit and moves out? The place is in tact but they were not supposed to do this. We have a policy that if they move out before lease ends, we hold them responsible for 1 month rent plus security deposit. How much legal power do I have here? Thank you
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
10y

Do you mean they used their security deposit as their last months rent?  If the home is decent you will be wasting your time trying to get anything from them.  Move on and get the home rented out.

Curt Davis - KAIZEN Realty538 Reviews
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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    10y

    Do you mean they used their security deposit as their last months rent?  If the home is decent you will be wasting your time trying to get anything from them.  Move on and get the home rented out.

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
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  • Lawson Ott
    Investor · Connersville, IN · Member since 2016 · 89 posts · 25 votes
    10y

    what do you mean they lived off the security deposit?

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  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    10y

    I agree with @Curt Davis move on!

    0Reply
  • Ryan Cunningham
    Bethpage, NY · Member since 2016 · 6 posts · 0 votes
    10y

    If the home is intact just move on, if there are repairs to be made then i would consider going after them

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  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    This is a reason to have the deposit > rents.  If the deposit is 2x the rent, this will stop.

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  • Account Closed
    West Bloomfield, MI · Member since 2016 · 8 posts · 2 votes
    10y

    I agree with J Beard. Unfortunately some states do have limits on how much a tenants security deposit can be (usually some ratio according to the monthly rent). Here in Michigan it is 1.5x the monthly rental rate.

    I believe what you may be saying though, is that the tenant moved out before the lease expired, which means they are still obligated to pay the termination fee. If it is clearly stated in your lease what the early termination includes, you should have no problem taking them to court and getting the termination fee.

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  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    10y

    I have had this happen.  I don't know the quality of tenant but odds are going after them is going to waste more time and money then it is worth.  

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  • Jason M.
    Investor · Jupiter, FL · Member since 2016 · 26 posts · 7 votes
    10y
    Did they just leave? Or were they late in rent and you didn't start the eviction process and are now left using the security deposit as rent?
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