Bad tenants
My last tenant did not pay last months rent and basically used her deposit for it. Her deposit was way less than the rent due. She did clean up the property and gave me $300, but there is still damage.She basically decided for herself that she would get all her deposit back.What recourse do I have here?
She decided for herself? Its not her decision. First, you screwed up by not posting a pay or quit notice the first day the rent was late. Deposit is not last month's rent, so last month's rent is due just the same as any other month's. No rent, start the eviction process.
What was the $300 for? Partial rent?
Now that she's left, you need to provide an accounting of the security deposit. You need to itemize the charges. At the least, it sounds she owes you the last months rent, late fees(?), and repairs for any damages. She has credits of the $300 and her security deposit. If there's anything left, send it to her. If not, send her a bill for the difference.
Yeah, i screwed up several ways. I didn't put the deposit in an account like i was supposed to. I didn't ask for first,last and deposit when the lease was signed. I did send her a demand of possession letter, but I was out of town until the 15th of the month. So she is out, and I have a new tenant so I'm going to act like it is a wash.
Nevertheless, you must send an accounting. Failure to send her an accounting of her deposit is a problem almost everywhere. She can come after you for the full deposit, and in some locations, double or triple damages.
Originally posted by Jon Holdman:
Nevertheless, you must send an accounting. Failure to send her an accounting of her deposit is a problem almost everywhere. She can come after you for the full deposit, and in some locations, double or triple damages.
To add to this comment from Jon - which I completely agree with: There is often a deadline for getting that accounting to the tenant's new address. Failure to get it there by the deadline can be treated the same as if you never sent it - penalty of double or triple the deposit money involved.
And in some places the deadline is not very long after the move out or end of lease (you will also have to be aware of what event starts the time ticking on this - moving or the last day of the lease, because they don't have to be the same date).
This can become an expensive lesson to learn, so get moving on doing this in proper compliance with your local landlord-tenant laws.
You might find that the tenant's failure to give you a forwarding address may give you more time, or may require you to handle this a bit differently. But it sounds like you have an idea of where the tenant moved.
I sent her a demand of possession letter stating the rent she owed and the late fee. She never paid. So how can she come after me for the deposit? I don't know where she moved anyways. Is that my fault?
If you dont know where she moved whered you send the demand of possession letter to!? If the tenant didnt leave a forwarding address always send it to there last known address, in this case, your rental, hopefully they filled out a change of address at the post office. I'd send 2, 1 certified and 1 regular
-Scott
This accounting has absolutely nothing to do with any eviction paperwork or demand for possession or whatever. It is an accounting of the tenants security deposit. Here is CO, the deadline by law is 60 days after the lease terminates. In a situation like this, that would be 60 days after you get possession. It may be much shorter in other areas. Failure to provide this accounting means you have taken nothing from the security deposit and must return it all. If you don't send the letter, you tenant has an excellent case against you, and in some areas, they can get double or triple the amount of the deposit. Now, whether one would try or not is a different question. But why take the risk.
As Scott says, if you have nothing else for a forwarding address, send it to the last known address. I typically send two for my bugged out tenants. One says "address service requested", which would forward the letter and send me a postcard with the new address, if the PO has one. A second with "return service requested" which just returns it to me if undeliverable. When the letters come back, I put them, unopened, in my files. Should a tenant come back to me, I can produce the sealed, postmarked letters.
Originally posted by Jon Holdman:
One says "address service requested", which would forward the letter and send me a postcard with the new address, if the PO has one. A second with "return service requested" which just returns it to me if undeliverable. When the letters come back, I put them, unopened, in my files. Should a tenant come back to me, I can produce the sealed, postmarked letters.
Jon... great set of recommendations...
I just want to point out that the second to last sentence is critical... in case you missed it.
DON'T open the returned letter. Just put it in the file in case you need and if you do need it, present to the judge and they can open it. This proves that you took that action and the tenant did not claim their mail.
Originally posted by Jon Holdman:
She decided for herself? Its not her decision. First, you screwed up by not posting a pay or quit notice the first day the rent was late. Deposit is not last month's rent, so last month's rent is due just the same as any other month's. No rent, start the eviction process.
Jon, when someone does that in the last month of their lease and they're moving out anyway, is it financially worthwhile to begin an eviction at that stage?
Who knows. At least here in CO you could get it done quickly enough to give them the boot if they fight it and refuse to pay. So, they actually have some incentive to pay up if they don't want to end up on the street. If you do file the eviction and win, they have an eviction on their record. What you're really hoping for, though, is that starting the process makes them re-think their decision not to pay.
Good suggestion Jon, I will do that. But I sent the Demand of Possession letter to the house when she still lived there. She basically got her deposit back anyways since she did not pay last months rent. I'm not really worried about it, but I will send those letters out just in case. Thanks for the advice
I understand how you see things. A judge will disagree. From your perspective, she got the deposit because she didn't pay the rent. But you have never made a written accounting of the security deposit, a judge will say you still have it. At least here in CO, if you don't provide that letter within the time limit, you own them their security deposit. It would be rubbing salt into the wound for the tenant to come after you for it, but they might well get a judge to see their point of view. Colorado law allows triple damages, so failing to send that letter here in CO could end up in you owing your bad tenant three times the amount of the deposit. Talk about salt!
Originally posted by Jon Holdman:
What you're really hoping for, though, is that starting the process makes them re-think their decision not to pay.
ok, I didn't think about that aspect
Often, if you start the eviction process, they will pay. Many tenants are just trying it on to see if they can get away with it.
You have no guaranttee that they are moving. They don't pay, they get a free month, and they might decide to try for a couple more free months and make you evict them in the end, after they have stalled you off as long as possible.