Small claims court hearing for unreturned sec deposit- Minnesota
Minneapolis, MN · Member since 2015 · 12 posts · 0 votes
Small claims court hearing for unreturned sec deposit- Minnesota
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Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9ySo mutual lease termination. Her obligation to pay you ended at date you both agreed she was to move out, because she wanted to keep her pet or whatever.
I would say she owes for the 10 days if she agreed to stay to that date.
Your loss of rent for new tenant is not her responsibility to cover , and if you got any income for the part of month she was to cover from new tenant you have to give that back to her, you can't collect rent for same place from 2 people.
how long has lapsed since she moved ? she has a certain period to request a refund back from you. I'm not sure what it is but can check later tonite and let you know tomorrow..
Best method of notice is use mail. As long as she responded she received your security deposit statement I would say you gave her OK notification.
Any advertising, showing expenses, marketing expenses are not her's to cover .. If you agreed to let her break the lease and move out early, it doesn't matter if it was because of lease violation of dog if you agreed to let her break the lease and move.
22 Replies
- Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes9y
Please clarify what does "I let her go" mean . Did you mutually agree, and she agreed to vacate before end of lease, or did you file eviction action, or did she leave no notice. It makes a difference in giving you a better answer.
- Minneapolis, MN · Member since 2015 · 12 posts · 0 votes9y
Deanna,
She wanted to terminate the lease. And i said yes. Because i didn't want somebody having pets and violating the lease and not willing to pay a pet deposit.
She said she could stay till i find another tenant, but left 10 days before the next tenant moved in. So lost 10 days of rent and also i had to drop the rent to get a new tenant .
- Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes9y
So mutual lease termination. Her obligation to pay you ended at date you both agreed she was to move out, because she wanted to keep her pet or whatever.
I would say she owes for the 10 days if she agreed to stay to that date.
Your loss of rent for new tenant is not her responsibility to cover , and if you got any income for the part of month she was to cover from new tenant you have to give that back to her, you can't collect rent for same place from 2 people.
how long has lapsed since she moved ? she has a certain period to request a refund back from you. I'm not sure what it is but can check later tonite and let you know tomorrow..
Best method of notice is use mail. As long as she responded she received your security deposit statement I would say you gave her OK notification.
Any advertising, showing expenses, marketing expenses are not her's to cover .. If you agreed to let her break the lease and move out early, it doesn't matter if it was because of lease violation of dog if you agreed to let her break the lease and move.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
my question is if you intended to keep part of her security deposit did you give her a notification that may be required under state law
- Minneapolis, MN · Member since 2015 · 12 posts · 0 votes9y
She gave me notice on the middle of the month and moved out the next month end. Technically isn't she supposed to give 2 months notice as per the lease?
I told her my tenant wouldn't move in when she leaves, but she said she cannot move any time after that. She didn't honor the 2 months notice.
Also it is not that she brought the pet in the middle of the lease. She signed the lease and even before a month i find out she has pets. So she had pets from day one and signed a no pet lease. She says i was ignorant about the pet policy and i think that is cheating. So she breaks the lease in 1 month after signing a 1 year lease.
- Minneapolis, MN · Member since 2015 · 12 posts · 0 votes9y
@John Thedford : I was not planning on withholding the deposit at the time when i agreed to let her break the lease.
But later when i figured i had loss of rent because of her early termination I sent her the statement highlighting my losses.
Also because she had pets i had to clean the carpets for the next tenant. I did the cleaning myself.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
If you did not comply with state law regarding a claim against the deposit you may have some issues.
- Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes9y
You need to be aware of the statutes for your state regarding the return of a former tenants security deposit:
https://www.revisor.mn.gov/statutes/?id=504b.178
One question that is likely to come up in court is that this statute states that WRITTEN documentation is required. It is unknown whether an email would suffice.
Even if I have tenants that take off without notice I always make certain to send an accounting of their security deposit to the last known address (my rental property) within the required time period; collect the envelope and keep it in the tenants files as evidence of a good faith attempt to provide them with the required status of their deposit.
Gail
- Investor · Minneapolis, MN · Member since 2015 · 252 posts · 263 votes9y
I agree with @Deanna McCormick. Unless you have something in writing, with the tenants signature - tenant will argue it is a termination by mutual agreement and he / she has no obligations to to pay you for the loss of rent or any other expanses pertaining to renting a unit. Now, damages as in carpet cleaning - you can deduct, but you better have proof of damages (pictures) and proof of work / expanses.
- Investor · Minneapolis, MN · Member since 2012 · 187 posts · 117 votes9y
@Albert George I believe the MN statute is very clear in saying that a written damage deposit letter must be provided within 21 days of move out. Email may not stand up as it may be the loophole they are using to get you sued. The statute says a letter with first class postage will suffice. Make it a certified letter and you will have proof of sending.
You have to give detailed account for everything you deducted from the deposit.
The 10 days before you collected rent from the new tenant can be deducted.
The carpet cleaning can be deducted but the burden of proof is on you so hopefully you have pictures or receipts for having rented a cleaning system.
You can charge for your time cleaning.
You cannot claim losses for collecting less rent from the new tenants.
Depending on your lease, you may be able to clam costs of advertising, etc.. If your lease does not have any clause for this, you may not be able to charge anything. In my lease I have a $300 lease break fee to handle this sort of thing.
Read the statute because I believe the penalty for not returning the DD is much larger than the deposit itself. I think you have some real risk here since you did not send a letter.
- Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes9y
"@Gail Kaitschuck And make sure when you spend the tenants security deposit provides the tenant with receipts, so they can verify how you spent their deposit."
This is not a requirement in Georgia but can be in other states.
Gail
- Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes9y
Albert,
In Minnesota the Minnesota Mulit Housing Association is a great resource for landlords and I urge you to become a member, they have great classes and resources for leases and legal .
Not sure what you put in your security deposit statement but here are the rules, normally carpet cleaning is a normal wear and tear item so unless you took photos of dog stains, I doubt you'd be able to charge that to her.
And in the future put it in the mail. When you go to court the referee will look at each of your information so bring what you have, receipts, copy of your email, photo's if you took any his decision is mailed so you won't know until about 2 weeks what happens.
I didn't find the clause as per how long she has to dispute not getting her deposit returned, I thought there was one just not sure at this point.
Best of luck,
2016 Minnesota StatutesResources
- Search Minnesota Statutes
- About Minnesota Statutes
- 2016 Table of Chapters
- 2016 Statutes New, Amended or Repealed
- 2016 Statutes Topics (Index)
Chapter 504B
Section 504B.178
Topics
- Conciliation Courts
- Contracts for Deed
- Damages
- Estates
- Foreclosure
- Interest
- Landlords and Tenants
- Residential Rental Property
Recent History
- 2010 Subd. 7 Amended 2010 c 315 s 6
- 2009 Subd. 8 Amended 2009 c 123 s 4
- 2008 Subd. 8 Amended 2008 c 177 s 2
- 2003 Subd. 2 Amended 2003 c 52 s 2
- 2000 Subd. 2 Amended 2000 c 282 s 1
- 1999 504B.178 New 1999 c 199 art 1 s 16
Subdivision 1.Applicability.
Any deposit of money, the function of which is to secure the performance of a residential rental agreement or any part of such an agreement, other than a deposit which is exclusively an advance payment of rent, shall be governed by the provisions of this section.
Subd. 2.Interest.
Any deposit of money shall not be considered received in a fiduciary capacity within the meaning of section 82.55, subdivision 26, but shall be held by the landlord for the tenant who is party to the agreement and shall bear simple noncompounded interest at the rate of three percent per annum until August 1, 2003, and one percent per annum thereafter, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3 or to the date upon which judgment is entered in any civil action involving the landlord's liability for the deposit, whichever date is earlier. Any interest amount less than $1 shall be excluded from the provisions of this section.
Subd. 3.Return of security deposit.
(a) Every landlord shall:
(1) within three weeks after termination of the tenancy; or
(2) within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant,
and after receipt of the tenant's mailing address or delivery instructions, return the deposit to the tenant, with interest thereon as provided in subdivision 2, or furnish to the tenant a written statement showing the specific reason for the withholding of the deposit or any portion thereof.
(b) It shall be sufficient compliance with the time requirement of this subdivision if the deposit or written statement required by this subdivision is placed in the United States mail as first class mail, postage prepaid, in an envelope with a proper return address, correctly addressed according to the mailing address or delivery instructions furnished by the tenant, within the time required by this subdivision. The landlord may withhold from the deposit only amounts reasonably necessary:
(1) to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement; or
(2) to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted.
(c) In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit shall be on the landlord.
Subd. 4.Damages.
Any landlord who fails to:
(1) provide a written statement within three weeks of termination of the tenancy;
(2) provide a written statement within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant; or
(3) transfer or return a deposit as required by subdivision 5,
after receipt of the tenant's mailing address or delivery instructions, as required in subdivision 3, is liable to the tenant for damages in an amount equal to the portion of the deposit withheld by the landlord and interest thereon as provided in subdivision 2, as a penalty, in addition to the portion of the deposit wrongfully withheld by the landlord and interest thereon.
Subd. 5.Return of deposit.
Upon termination of the landlord's interest in the premises, whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or the landlord's agent shall, within 60 days of termination of the interest or when the successor in interest is required to return or otherwise account for the deposit to the tenant, whichever occurs first, do one of the following acts, either of which shall relieve the landlord or agent of further liability with respect to such deposit:
(1) transfer the deposit, or any remainder after any lawful deductions made under subdivision 3, with interest thereon as provided in subdivision 2, to the landlord's successor in interest and thereafter notify the tenant of the transfer and of the transferee's name and address; or
(2) return the deposit, or any remainder after any lawful deductions made under subdivision 3, with interest thereon as provided in subdivision 2, to the tenant.
- Investor · Memphis, TN · Member since 2013 · 59 posts · 30 votes9y
I am missing something here. How are you out the 10 days of lost rent? Did the tenant pay rent for the month the moved out? If yes and the new tenant moved in on the first you're not out any rent. That sounds like a win to me.
- Minneapolis, MN · Member since 2015 · 12 posts · 0 votes9y
The tenant informed me about her intent to terminate the lease on the 15th of the month. My lease states a 2 month notice is required. She vacated end of the following month, even tough i told her my new tenant will be moving in at a later time only.
My new tenant moved in only 2 weeks later. That is why i am at a loss of 2 weeks rent.
Regarding communication thru Email : The tenant gave termination notice thru email, I didn't receive any mail written notice, so the agreed upon medium of communication has been email. I had sent the deposit notice thru email for the same reason. I believe Email is considered a Written statement. I don't think the tenant can claim that she didn't receive the notice has she had responded back to my email.
- Investor · Memphis, TN · Member since 2013 · 59 posts · 30 votes9y
If the tenant paid full rent for the month she only stayed a portion of (2 weeks) you're still not out any rent whether it was occupied or not. If she did not pay rent for the month she only stayed 2 weeks that's another matter and you should have started eviction the first possible day.
- Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes9y
This is what I believe you can charge for.
Ex:
She gave notice on Aug 15 for 60 day notice,, so she would be required to pay rent for month of august and September and October. There is no 1/2 month notice period. If she moved early in month of September that was up to her she would still owe for balance of Sept and October.
If you chose to re rent apartment after she left that's fine. If you re rented for any portion that you were charging her for, for the month of Sept or October then you can't charge her for any days the other tenant was occupying the apartment and paying rent during that period.
You are required by State law to put the security deposit statement or refund in the mail.
- 9yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
@Albert George , what's done is done, and if your tenant is taking you to small claims court, you need to start gathering up your documentation.
Hopefully you kept her email and did not delete it? Print out 3 copies (one for you, the judge and the tenant) of everything to take with you to court.
Write down everything as you remember it happening. Print out any emails you have between the two of you.
When you go to court, try to keep emotion out of it. The more prepared you are, the better.
- Real Estate Salesperson Licensed · Atlanta, GA · Member since 2016 · 114 posts · 22 votes9y
Have you consulted with a real estate attorney, Albert?
- Royal Oak, MI · Member since 2015 · 257 posts · 230 votes9y
I am in a similar situation with a former tenant that vacated due to breaking a lease clause. My attorney (in Michigan) states that no lease can be altered by verbal communication. Email may change that. You probably want to speak to a lawyer.
- Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes9y
Sorry...can't help out since it is in Minneapolis--state laws are all different--get advise from someone that knows the law in your state. If you want, I can connect you with an experienced investor in that state for help.
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