Tenant is moving out

[Jimmy S.]

HI everyone. Need some advice here.

Tenant is been there 3 years and was always on time. The lease states It is a 1year lease and will automatically renew if 30 days written notice is not giving at the end of the lease ( Only told them this when we signed the lease and went over everything before signing) I got a text from them few weeks ago, 6 months into the new lease and they said they bought a house and will be moving in a few weeks. I told them I would let them use their last month rent for December. I still have their security deposit. I did a showing a few days ago and the place looks ok. They messed the railing up on the wall and also seen scratch marks on the one cabinet so they must have had a pet. Lease clearly states no pets. Also they cancelled the utilities on 12/10 so I will be stuck with them now. Also they said a scrap person took the lawn mower by mistake I have provided them so Im out a lawn mower to

What should I do? Its going to be vacant till i can find someone but they will be upset if I keep the security deposit also but they did brake the lease several ways.

Thanks

[Johnny Hastings]

You don't mention how much the security deposit was. Does it cover all the damages? If so, there's no real question here, you write them up a checkout invoice, and keep the security deposit. 

They've violated the lease agreement, so you could make an argument that you're entitled to the entire security deposit, regardless. I've heard some possible concerns with a judge seeing it that way, but it's never stopped me from keeping the entire security deposit in this case. It's happened to me a couple of times over the last few years, and every time it's been a tenant I was happy to get rid of.

Yeah, they're going to be upset that you kept the security deposit. In that case, they shouldn't have violated the lease. Your job isn't to make sure no one gets upset at you. Get over that, or you'll be taken advantage of all the time in this business.

I'd keep the deposit, without question.

I'm not sure on the grade of property you're dealing with here, or the tenants that you attract. Did these people have a solid rental history before you let them move in? One thing I've started doing, and it has been a great mitigator of this exact situation, is to require first and last month's rent up front, along with the security deposit. If the potential tenant has any kind of blemish on their rental history, I don't budge on that. This exact thing happened to me in November, and it was a tenant I'd had pay first and last month's rent up front. That rent was long spent by me, but at least I got it at some point!