New Tenant Issues - Gone Today Out Tomorrow
I have a tenant that was supposed to move in one of my properties by mid-December. She paid the security deposit, but could not afford the pro-rated rent for December and 1st month’s rent by January 1. We agreed to a move-in date of January 1. The week of January 1, she sends an email stating “I will hopefully have the rent in a week or two”. I was done with this tenant and told her we could not move forward with leasing the property to her. After a week of her calling and assuring us she can pay the rent, we decided to move forward anyway. She deposited her funds (1/2 in cash, ½ by check) in the designated bank account. This morning, I get a NSF notification from my bank regarding the check (for ½ of January’s rent) she deposited. At this point, I am done with this tenant and will be informing her we can no longer lease the property to her. She hasn't moved anything in yet. Her plan was to do it this weekend. I need to stop her before she does.
My question is: How much am I obligated to refund back to her? Remember, she paid the security deposit and ½ of 1st month’s rent in cash.
Note: She signed the lease agreement and emailed it to me. I never signed it.
Most Popular Reply
Never take personal checks for move in funds.
Inability to pay move in costs up front = major red flag.
What does your application say about holding deposit? Non-refundable? If so keep the deposit, return the rest minus NSF fee. If not return it all and focus on finding a new qualified applicant.