How does "oldest debts get paid first" clause work in lease
I would like to add an "oldest debts will be paid first from the rent" clause to my lease, but I'm a bit confused about how this is applied in the real world.
Let's say the rent is $1000/mo.
They pay the full $1000 for February rent, but they never paid, say, a rent late fee or a water bill (that was in my name but they were required to pay me each month) that was due in January, for $30.
So with the rule applied, they've only met $970 of their $1000 obligation for February rent. However, if I accept the $1000, technically I'm accepting a partial payment of rent, which is a bad idea. So would the idea be to just refuse the $1000 payment and post the 3 day notice at that point, or are these "old debts" just carried on and removed from the security deposit at the point when they move out? Thanks.