Going-to-court threats over a security deposit (A Story)

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Going-to-court threats over a security deposit (A Story)

Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes

Happy Friday! Story time!

I had some month-to-month tenants in one of my units that gave their notice to vacate via text. The text, dated 06 Jan 2017, said:

"Hi, just letting you know that this month will be the last month at the house as we will be moving out of state."

They vacated by 22 January and contacted me within the week asking if the deposit had been returned. I got side-tracked and did not reply. They texted again a week ago and I said that any due monies would be returned within 45 days. I guess they did not like that. I got an email next saying:

"Hello. Just writing to inform you that according to Maryland state law, you as the landlord have (45) days to return the security deposit to the tenant. If you fail to do so, you are accountable for up to three times the security deposit plus attorney fees, respectively. It is coming up on 30 days, if the security deposit is not returned to the address [address redacted] by 45 days, we will be forced to take further legal action in hiring an attorney. Thank you."

We have not responded, but found it interesting the need to threaten us with court when we're still within our legal time-period. Besides that, the biggest point is that they seem to expect it back when they did not give a 30-day notice, as required by local law and also stated in the lease. We will be sending the required letter before the time period is up (probably this weekend). I think this is a good time to require signature for this mail!

What security deposit demands and threats have you received?

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Russ M.
Investor · Brookfield, WI · Member since 2014 · 110 posts · 99 votes
9y

I had a tenant that was an inherited tenant when we bought the property.  Was initially on a 12 month lease.  Lease clearly spelled out - Rent increases 10% if you want to go month to month instead of renewing for a year.  His first response was "the previous owner said they never really did that".  I told him the previous owner doesnt own the building any more and we are going by the terms of your lease.  He proceeded to pay the higher amount for about 18 more months.  Then when he finally did move out, the check-in/check-out sheet was marked with no problems during their move-in inspection.  When we sent them a statement charging them for holes in doors and other broken items, he said "Oh the old owner told us we didnt have to write them on the inspection sheet, they would remember them".  He also threatened with court.  I suggested he go back to the old owner to get his money because again, he didnt own the building anymore and he as the tenant was responsible for those damages.  He cashed the security deposit check and we have never heard from him again.

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  • Leland Barrow
    Investor · San Marcos, TX · Member since 2015 · 272 posts · 360 votes
    9y

    Give them their security deposit back. You have already invested too much time and thought into this.

    To answer your question and don't take it as snarky because it is an honest answer. I don't have these issues. I reply to text messages. When you are dealing with people you always have the human factor. Always be timely, always be within the law, always factor in the extremely high cost of standing your ground.

    Always be professional. Realize emotions will cost you money.

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  • Nicole A.Pro Member
    OP
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    9y

    Oh I don't typically have these "issues" either, but it is bound to happen at some point over the years of managing your properties! That's a lot of people to keep happy, and well, we all know it's impossible to keep every single person happy. ;-)

    I do almost always answer my texts and emails. And I did answer their second text; it was my mistake to get sidetracked and not respond to their first text. However, I've spent very little time and thought on this. Just thought it'd be an interesting topic!

    I could give the deposit back if I listened to my emotions. They were generally good tenants and cleaned up fairly well before leaving. However, when I go into grey areas while managing multiple units, that emotional judgement can get me into trouble. Here's how:

    If I give them back the deposit because it was "only" 6 days into the month for the notice, then where exactly do I draw the line of it suddenly not being okay with other tenants. I must treat everyone the same and exactly as the law states to attempt to be as black and white as possible and not look like I give special treatment to some over others. Finally, I've been actively advertising and showing the unit since they left, but no (good) apps yet! Hard during this time of year, but this week sounds promising as I've gotten a surge in interest. Thank you so much for your thoughts!

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  • Deanna McCormick
    Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Your move out security deposit statement needs to be sent out within your state guidelines. The tenant has requested a prompt refund or statement and knows the state laws. If improper notice was given and you had damages I would have let them know your still processing the paperwork and confirm the forwarding address.. I'd be correct in any items you charge them for and have receipts to follow up any repairs.

    Send the the statement. 

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  • Nicole A.Pro Member
    OP
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    9y

    I must work on being less wordy so info doesn't get lost! *wink* I stated that I will be sending the required letter/notice within proper timelines. I'm not really looking for advice in this thread, but more of sharing a story and perhaps others sharing similar stories. Sorry for the confusion!

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  • Russ M.
    Investor · Brookfield, WI · Member since 2014 · 110 posts · 99 votes
    9y

    I had a tenant that was an inherited tenant when we bought the property.  Was initially on a 12 month lease.  Lease clearly spelled out - Rent increases 10% if you want to go month to month instead of renewing for a year.  His first response was "the previous owner said they never really did that".  I told him the previous owner doesnt own the building any more and we are going by the terms of your lease.  He proceeded to pay the higher amount for about 18 more months.  Then when he finally did move out, the check-in/check-out sheet was marked with no problems during their move-in inspection.  When we sent them a statement charging them for holes in doors and other broken items, he said "Oh the old owner told us we didnt have to write them on the inspection sheet, they would remember them".  He also threatened with court.  I suggested he go back to the old owner to get his money because again, he didnt own the building anymore and he as the tenant was responsible for those damages.  He cashed the security deposit check and we have never heard from him again.

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y

    I had some student tenants in a furnished rental who got all upset about the charges for furniture damage. They said  they didn't have any DVR to damage and even if they did it belonged to the cable company so why was I charging them.  I told them I know they didn't realize there was a DVR or they would not have spilled beer on it. They were threatening but eventually cashed the check and never went through with it.

    Your tenants sound like they expected the deposit right away definitely send it with signature required.  I try to set expectations that it will be the maximum because for RI it is 20 days, that isn't all that much and sometimes repair estimates can take time.

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  • JR T.
    Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
    9y

    Send the statement, calculated in accordance with your lease agreement. Then apply a "courtesy discount" or credit against whatever you're charging and refund the deposit with interest as required by law.

    You're within your rights to discount your receivables on a case-by-case basis. In this case you're pricing in your risk some attorney will mess with you for years hoping for some outrageous fee award for pursuing you to the ends of the earth to recover the minimal deposit funds and penalty. 

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