Can Landlord Use Last Month's Rent towards Damages?

Can Landlord Use Last Month's Rent towards Damages?

Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes

QUESTION: CAN I, LANDLORD, WITHHOLD THE LAST MONTH'S RENT ALONG WITH DAMAGE DEPOSIT FOR DAMAGES IN FLORIDA?

I searched previous discussions and couldn't find this question, somehow.

The specific story if it matters:

Purchased property with Tenant in place, the first thing he said when we met is that he's moving.  I was glad to hear it because the house was severely under-rented and this tenant was clearly incapable of caring for a property, covered in greasy dusty cobwebs and terrible odor.

I met with Tenant twice, performing walk-through inspections both times. The tenant complained that thousands of dollars in work was needed. He admitted to never cleaning once in 9 years.

He refused to sign renewal that was offered to him 8 months earlier, so I served him with a letter stating we would not be renewing, he handed back a letter saying that he would leave even sooner than that, demanding money up front to walk.  I refused.  He ignored me completely.  So I sent him a new lease at market price, since it seemed he resolved to stay.  Luckily, we learned that he did in fact leave and there was a "purposely broken pipe in the kitchen" when I walked in, my plumber's words.  

Tenant wrote to the management company / us, "I was advised by Heather Olson that I would receive my deposit money back promptly as soon as I moved out but have yet to receive it. Here is the list of deposit-related items and early vacancy refund I am emailing you about:      $900 - Security Deposit        $900 - Last Months Rent        $250 - Pet Deposit        $225.81 - Pro-rated Rent Refund (7 days early vacancy)       Total Owed: $2,275.81 "

OF COURSE, I WOULD NEVER SAY SUCH A THING.  

My notes from the walk through inspection with Tenant show that Tenant admitted to only doing less than minimum maintenance over his 9 years of tenancy: 1. reinstalled mailbox, 2. crawled in attic once, 3. had a breaker installed (wrongly charged landlord $250 by underpaying rent on last month), 4. had small repair done on pool, which was not effective, by his own account.  

Single Page Lease from Attorney states tenant is to take care of first $200 of maintenance not including labor, monthly. Monthly rental rate set at $800 below market.

I want to claim for the approximate $10,000+ in repairs and deferred maintenance that I am paying a crew to perform, including supplies.  I am not sure the exact amounts yet and have to separate out the upgrades and normal wear and tear from what was absolutely necessary.  The entire house needed interior paint, with hundreds and hundreds of holes and kid's wall graffiti, broken cabinets, doors missing, he purposely cut off the new A/C from the rooms he didn't want to cool and that caused mold, you name it!

MY MAIN CONCERN IS HOW FAST TIME IS FLYING AND I DON'T KNOW THE FULL COSTS YET, WITH A FULL CREW WORKING EVERY DAY EXCEPT FOR BEING PULLED OFF FOR STORM EMERGENCIES HERE.  ALSO, HE DOES HAVE AN ATTORNEY INVOLVED FROM THE OTHER SIDE OF THE STATE? ODD!

I TRUST THIS FORUM AND APPRECIATE YOUR INPUT!

WHAT WOULD YOU DO?

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
9y

@Heather O. First and foremost, what does your landlord tenant laws state about notice from either party? Familairize your self with these, they are life savers.

Secondly, your story sounds somewhat confusing, you gave notice to vacate, then offered a renewal. Should have been one or the other, sometimes (depending on your states laws), one can negate the other

Rent can not be used for repairs at all.

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  • Real Estate Agent · Highland, UT · Member since 2015 · 407 posts · 272 votes
    9y
    I would say no landlord can't use last month's rent for repairs. Did you ask them to leave before the end of the month? I wouldn't give pro rated rent back for any early days moved out. Can you show any damage was done by the animals to keep the animal deposit? With the amount of damage I wonder if you could do small claims court and try and collect that way. However where you didn't own it the whole time I doubt it. Did you get a good deal based off condition?
  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Heather O. First and foremost, what does your landlord tenant laws state about notice from either party? Familairize your self with these, they are life savers.

    Secondly, your story sounds somewhat confusing, you gave notice to vacate, then offered a renewal. Should have been one or the other, sometimes (depending on your states laws), one can negate the other

    Rent can not be used for repairs at all.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    I would cut bait and move on from here. The previous landlord apparently approved of the previous 9 years, and you purchased the place with the tenant in place and the home in the current condition, so I don't see that you'll have much legal ground to stand on anywhere. If you don't have any proof of the condition of the home before the tenant moved in, you'll be hard pressed to even hold on to the deposit for damages. 

    As for keeping rent paid but unused for damages, I doubt that is legal in Florida. You would need to get a court judgement to determine if the tenant is responsible for damages beyond the deposit amount in order to collect any further money. 

    Skyline Properties
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  • Real Estate Agent · Seminole, FL · Member since 2016 · 5 posts · 2 votes
    9y

    Usually you can add in the ORIGINAL lease_ if you leave early or break the lease 2 months is owed>>Intial here_______>.The money on the table is yours IF THEY SKIP OUT_but I doubt they will pay 2 months rent-always-so money owed goes out the window except the DEPOSIT>paid.

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @Becca Summers:
    I would say no landlord can't use last month's rent for repairs. Did you ask them to leave before the end of the month? I wouldn't give pro rated rent back for any early days moved out. Can you show any damage was done by the animals to keep the animal deposit? With the amount of damage I wonder if you could do small claims court and try and collect that way. However where you didn't own it the whole time I doubt it. Did you get a good deal based off condition?

    No, of course, I did not want him to leave mid month, that's ridiculous to consider.  We have very friendly squatter laws in Florida, I never let a house sit vacant for a night on purpose.  He abandoned the property, he says he paid the last month twice, I received no payment from him for last month, except for what was in escrow.  He's extremely difficult to deal with.  

    Yes, pets caused the odor and we had to have that treated,  so gross.

    I am 100% sure that he's not getting his damage deposit back, nor the non-refundable pet deposit.  Just unsure about rent.  Maybe I should refund it to save myself the hassle of seeing him again, I think that's a cop out.  

    I don't know how to answer your last question.  I feel like I paid market price and I always do pay market price and I am happy to do so.

  • Real Estate Agent · Highland, UT · Member since 2015 · 407 posts · 272 votes
    9y

    @Heather O. then I'd say no to refunding the prorated rent since he choose to leave when he did. If he didn't pay rent the last month that is yours to keep as well. It sounds like he knows he is a pain and wants to push you around. I don't blame you for wanting to move on and get him out of your life these renters cause more stress.

    What I meant by asking if you got a deal on the house I mean did the seller sell for less than they could have just to get rid of the tenant? If so that might be some of the compensation you get for dealing with the problem renter.

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @Kim Meredith Hampton:

    @Heather O. First and foremost, what does your landlord tenant laws state about notice from either party? Familairize your self with these, they are life savers.

    Secondly, your story sounds somewhat confusing, you gave notice to vacate, then offered a renewal. Should have been one or the other, sometimes (depending on your states laws), one can negate the other

    Rent can not be used for repairs at all.

     Hi Kim! I read the related laws and I don't see this mentioned.  

    You are correct, many months ago, the previous landlord offered to renew the lease.  Tenant refused.  Tenant told me he was moving.  I gave him the legal notice stating that we will not be renewing the same contract.  He went back and forth between staying and moving, then acting like he was staying (so we agreed that the rent would go up and I would make some upgrades), then he ignored me.  We found the place flooding from a pipe that seemed to be purposely broken.  He left the door unlocked and the key on the counter.

    It complicated, or I would not be asking for advice. 

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @JD Martin:

    I would cut bait and move on from here. The previous landlord apparently approved of the previous 9 years, and you purchased the place with the tenant in place and the home in the current condition, so I don't see that you'll have much legal ground to stand on anywhere. If you don't have any proof of the condition of the home before the tenant moved in, you'll be hard pressed to even hold on to the deposit for damages. 

    As for keeping rent paid but unused for damages, I doubt that is legal in Florida. You would need to get a court judgement to determine if the tenant is responsible for damages beyond the deposit amount in order to collect any further money. 

     Hi JD!  What does "cut bait" mean?

    Would you refund all deposits?   I don't see that as an option, I replaced the previous and don't see that I should have a lesser placement than they had, I strictly replaced them.

    What do you mean "unused" ?  I am spending $10k in repairs and deferred maintenance.  He wants $2k. 

    No, no one "needs a court judgement to determine if the tenant is responsible for damages beyond the deposit amount in order to collect any further money" unless the tenant contests my claim.  I am trying to determine the fair way to claim.

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @Becca Summers:

    @Heather O. then I'd say no to refunding the prorated rent since he choose to leave when he did. If he didn't pay rent the last month that is yours to keep as well. It sounds like he knows he is a pain and wants to push you around. I don't blame you for wanting to move on and get him out of your life these renters cause more stress.

    What I meant by asking if you got a deal on the house I mean did the seller sell for less than they could have just to get rid of the tenant? If so that might be some of the compensation you get for dealing with the problem renter.

     Thanks, great advice.  Lovely Sellers had every unit severely under-rented with low-quality, late paying, complaining tenants.  I rather place a high quality, low maintenance tenant, who pays top dollar on time.  I have the ability to do so (it's my talent).  

    side note: Sellers gave between $50-$250 a year gift cards to each tenant annually - they were super sweet people and got walked all over by their tenants. 

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @Karen Young:

    Usually you can add in the ORIGINAL lease_ if you leave early or break the lease 2 months is owed>>Intial here_______>.The money on the table is yours IF THEY SKIP OUT_but I doubt they will pay 2 months rent-always-so money owed goes out the window except the DEPOSIT>paid.

    Good point, Karen!   You never know - we have the strangest, nonsensical things happen.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    A " non refundable pet deposit" is the wrong wording and COULD force you to return it. In the future, the proper term is non-refundable pet FEE. Fees are non-refundable. Deposits may or may not be refundable. It would also be prudent to add in a fee for breaking the lease. I use 1.5x the montly rent. Exactly what your lease states, as well as the state statutes, will determine what you may or may no do. 

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    9y

    @Heather O.

    Do you have the pre walk through checklist from the previous landlord? If yes, then you can most likely make a play for the damages. If you do not have any proof to the condition of the property at move in all he has to say in court is "It was like that when I moved in" the judge will look at you and say "Do you have proof of condition at move in?" Some states can award 3 times damages so just in the security deposit you could be on the hook for $1800. So I think @JD Martin was saying let the deposit go because you can't prove the cabinets were not broken, holes were not in the walls.

    As far as the last months rent and prorated etc, check local laws but there should be a time frame from when notice was given. Commonly 30 days notice has to be given before next rent due date (Not positive about Florida). So if he moved out 7 days before the end of a month he still owes for that month and the next if no notice was given. Unless you agreed to let him move out early with no penalty.

    Good Luck

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @Mike Cumbie:

    @Heather O.

    Do you have the pre walk through checklist from the previous landlord? If yes, then you can most likely make a play for the damages. If you do not have any proof to the condition of the property at move in all he has to say in court is "It was like that when I moved in" the judge will look at you and say "Do you have proof of condition at move in?" Some states can award 3 times damages so just in the security deposit you could be on the hook for $1800. So I think @JD Martin was saying let the deposit go because you can't prove the cabinets were not broken, holes were not in the walls.

    As far as the last months rent and prorated etc, check local laws but there should be a time frame from when notice was given. Commonly 30 days notice has to be given before next rent due date (Not positive about Florida). So if he moved out 7 days before the end of a month he still owes for that month and the next if no notice was given. Unless you agreed to let him move out early with no penalty.

    Good Luck

     Good points!  I do have the original walk through!  And all of the documents ever between the tenant and previous landlords, so I will use that to my advantage.  Incredible that I didn't even think of that!

  • Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    9y
    Originally posted by @John Thedford:

    A " non refundable pet deposit" is the wrong wording and COULD force you to return it. In the future, the proper term is non-refundable pet FEE. Fees are non-refundable. Deposits may or may not be refundable. It would also be prudent to add in a fee for breaking the lease. I use 1.5x the montly rent. Exactly what your lease states, as well as the state statutes, will determine what you may or may no do. 

    EXACTLY!  I call it a "fee" in all of my paperwork, he's using "deposit".    Well done!

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