What happens to deposit?

[Bobby R.]

We were given possession of our rental at eviction court. Tenant (ex spouse) paid a huge deposit including 3 mos rent + 2 mos deposit. The 2 remaining months rent will be used for her final 2 months (Jan-Feb). Tenant is a hoarder and needs lots of cleaning. I'm going to part ways with this PM after she's out. What happens to the deposit after the tenant and PM are done with? Does it come to me so I can clean, market etc?

[Oren K.]

Bobby,

Don't quite agree with JD. 

Firstly - this is likely governed by state, county and even municipal law / regulation so check in your jurisdiction.

One question - Does your lease state that the 'Deposit' is for 'Security' or 'Last Months Rent' (LMR). IF for security that generally covers excessive damage. IF for LMR, then that is what it has to be used for.

I think that in general, the hording is not normal use of the unit and as such, any costs associated with cleaning it out should be deductible from a security deposit but marketing, despite the eviction, for a new tenant is normally an owner expense and would not expect it to be deductible from the security deposit.

Oren