LL Gave My Prepaid Rent to New Tenants

General Landlording & Rental Properties
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LL Gave My Prepaid Rent to New Tenants

Burt L.
Real Estate Investor · Steamboat, CO · Member since 2010 · 295 posts · 34 votes

As I had to move quickly and give 30 days notice, I paid the October rent and gave notice I was leaving, keeping the utilities in my name. New renters were found in ten days and moved in on October 15th. The landlord asked me if they could move in before my month had expired. I replied that they could, if I was reimbursed for half the months rent.

The new tenants moved in and the LL said that the rest of my months rent was given to the new tenants because they paid the rest of the months utilites and that was my responsibility. LOL.

I directly asked the new tenants if they got a free half-months rent for paying the utilities for the first part of their tenancy, and they said the agreement was they got a free-half months rent if they would buy paint and repaint some of the house (after my three-year tenancy). At issue is $725.

Obviously, the LL misrepresented this, and I plan to write asking to have it returned or I will file in small claims. My security deposit was returned, avoiding trust account issues. The LL is also a Colorado realtor, where the property is. I had surguries in November and December so am now getting back to this.

I see such phrases at the site as "It costs alot of money to be right", etc. and to avoid court and the energy it takes. I doubt the LL would even make the trip, but I think $725 of my own money is worth a few hours. There are two properties here, now held in LLC's that I believe I could file a lien on after obtaining judgement.

What might I be overlooking in my non-independent analysis?

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    Hi, confront the LL with what you found out. Make your demand. Small claims court might be an option. The LL is probably thinking it was verbal, but if the other tenant moved in on the 15th, he owes you rent. You need to pay your utility bill, he can't offset utilities with rent unless they were included. I doubt you can have a lien on the property, but maybe you can in your state. Last, if the LL is a Realtor, you'll get quicker statisfaction with the real estate commission or state board that regulates real estate agents/brokers. Good Luck, Bill

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  • Mark N.A
    Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
    16y

    Take the LL to small claims court. Also aggresively pursue this with the state Real Estate licensing organization. And the BBB. And whoever else you can think of.

    SCREW the 1% of bad/ripoff/slumlord LLs who give the rest of us a negative image. Because of them we end up with Nazi neighborhood organizations, militant housing codes and enforcement, rent control, and the public (voting) perception that LLs are greedy unconsciounable moneybags without any morals.

    Good luck and keep us posted.

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  • Account Closed
    OR · Member since 2008 · 1k+ posts · 845 votes
    16y

    It sounds to me llike he owes you a refund. It's always best to start out with a polite letter stating your request and asking for your refund.

    If he doesn't respond, then small claims is an option. Just be aware that the judge can decide either way, and that the landlord can claim more damages than he charged your deposit for.

    If he goes in to court and states that the unit had to be painted because you'd left the paint damaged or dirty, it's going to depend upon what mood the judge is in on that day.

    Because you can never guarantee what a judge will decide, it is always better to attempt to settle amicably before you start court action. Small claims court should be your last option, not your first reaction.

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  • Burt L.
    OP
    Real Estate Investor · Steamboat, CO · Member since 2010 · 295 posts · 34 votes
    16y

    Thank you for the replies to my first post here. I'm fortunate to have found this forum.

    I understand that the landlord could add new charges (countercharges) to the amount due if I go to small claims court? I'm confused on this as my damage deposit was returned in full, and that was the opportunity to deduct for damages; wasn't it? My tenancy was three years there, and I'm pretty sure repainting was routine maintenance and the responsibility of the landlord after that period of time.

    The aspect of adding the Real Estate Commission as a source to hear my complaint would seem to be added incentive for the LL Realtor to return my prepaid rent. The story around it and trail of communications would seem to be in my favor, after the story changed when tenants were located.

    After three years of communications with this LL, I"m pretty sure that being nice wont get far, but perhaps doesn't hurt to begin with.

    Thank you.

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  • Josh Green
    Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
    16y

    burt, if he gave u back 100% of your deposit then he was satisfied with the condition of the property when you left.

    you have some good advice here. take it and use it!

    i guess i'm just really confused since u said the utilities were in your name. why did you leave the utilities in your name after u moved out on the 15th? either way, thats of no concern to the LL. he doesnt have a right to take $725 of your money and reallocate it.

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  • Burt L.
    OP
    Real Estate Investor · Steamboat, CO · Member since 2010 · 295 posts · 34 votes
    16y

    I need to clarify better how I moved out - after a three year tenancy, I needed to move quickly and needed to give thirty days notice. So I sent the rent and gave notice simultaneously, keeping the utilities in my name as I was responsible for the final month, or until new renters were located.

    On the 11th of the month the LL said new renters were located and could they move in early? I responded that they could if my rent was repaid. The LL then moved them in and said that they were given the rest of the month free as they were paying the rest of the month's utilities I was responsible for. I asked the new tenants, and they said they received a half months rent free for repainting instead.

    My position is that the LL bartered away my half months rent for maintenance that was the LL's responsibility, after a three year tenancy - thus receiving 1.5 months rent and services for providing 1 months rent. The aspect of the Real estate commission is of interest as I hadn't considered that before.

    I would like to believe a realtor/LL is held to a higher standard.

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  • Jeff B.
    Real Estate Investor · Lake Worth, FL · Member since 2009 · 263 posts · 92 votes
    16y

    Burt,

    What you will need to understand is what was said without witnesses or over the phone but not recorded between the two of you is called "heresay".

    Make sure any contract (lease) negotiations are either done through e-mail, through (registered, certified) letters, or with witnesses present who are crediable.

    If you are in small claims court you have to prove "everything" that your saying. You'll need to get an affidavit by "public officer authorized by law to administer oaths and affirmations" from the tenant who moved in stating the date they moved in and the requirements they needed to fulfill for the 1/2 month rent credit. A copy of the new tenants copy of the lease with the LL will help speed the trial also.

    As for the security deposit, I agree if that was returned it shows that the condition of the unit didn't warrant any repairs and he would have little recourse in court.

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  • Burt L.
    OP
    Real Estate Investor · Steamboat, CO · Member since 2010 · 295 posts · 34 votes
    16y

    Each of the communications were by e-mail, with the exception of being asked if the new tenants could move in before my 30 day notice to vacate had expired. The neighbors called to alert me when the new tenants moved in.

    I believe I have a good "paper trail" in this.

    0Reply
  • Burt L.
    OP
    Real Estate Investor · Steamboat, CO · Member since 2010 · 295 posts · 34 votes
    16y

    I went to small-claims court and did not prevail. The landlord's counterclaim also wasn't successful. I had to pay the LL's $42 in court costs, in addition to my own. While presenting my case, the judge asked me under what authority was the LL not allowed to receive rents from two renters over the same period. I could not cite legal authority and could only reply that it was prevented by basic right and wrong, which he wasn't impressed by. I also mentioned the clause in the lease which said a departed tenant receives credit for rents paid by a new tenant. He was unswayed that there was income if it wasn't in cash or check form.

    I need to find a Colorado rule that says a landlord cannot receive rents from two renters for the same period without returning the rents the first tenant paid. The complication is that the landlord bartered my prepaid rent for paint services, after a three-year tenancy, which was the LL's responsibility as routine maintenance. I even read the judge an example from the IRS rental property publication on trading rents for services, and how it is taxable income to the LL. He said that is a private matter between the IRS and the LL.

    As the LL is a colorado realtor, I can still file a complaint with the Realtor's Commission, as was mentioned above. It would be helpful if I had some authority on what prevented the LL from double-dipping, or unjust enrichment.

    I'lll have to learn to do legal research. It has been quite a process.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    16y

    Sorry, can't help with the reference to the "no double rent" law.

    Uh, no, its not. If you moved out after three years and the paint is not the same as when you moved in, the landlord can legitimately charge you for repainting.

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