Being Sued by Tenant

Being Sued by Tenant

Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes

My tenant in Chicago send a claim from a lawyer, stating I owe 27 thousand dollars in damages for not returning the complete security deposit.  The security deposit was 10 thousand dollars, she did not pay the last months rent, so 6550 was left. I charged 2,600 for repairs and damages, and sent receipts and pictures. I did not return the money from where the account is being held, and I did not return interest. It was an oversight from my part, but for 2600 I being sued for 27 thousand.....

Any way to approach this.?

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Rental Property Investor · Oreland, PA · Member since 2017 · 51 posts · 32 votes
8y
“He who represents himself has a fool for a client” ~Abraham Lincoln Best of Luck.
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  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    Any recommendations on should I get a lawyer??

  • Erie, PA · Member since 2018 · 413 posts · 348 votes
    8y

    Nothing of value to add but I hope it goes well for you 

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    8y

    the first step is to determine fi you followed your state laws in returning the deposit. if state laws were followed, then show up in court and present your evidence. if you missed a small step, or did something incorrectly, you can consider negotiating a few thousand dollars to make them go away.

  • Rental Property Investor · Oreland, PA · Member since 2017 · 51 posts · 32 votes
    8y
    “He who represents himself has a fool for a client” ~Abraham Lincoln Best of Luck.
  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    Thanks Joe Marshall!

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    Alicia,

    Good Advice!

  • Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    Typical lawyer tactic: hit 'em for $1 million and hope they settle for $50,000.

    A claim letter is not a law suit.  It is the opening play in negotiations.  Given that $27,000 (plus legal costs of defense) are on the line, I'd spend $100 or whatever to get 30 minutes of time with a local, experienced, land lord/tenant attorney to lay out your facts and see if there's any merit to the claim.  If yes, offer a settlement.  If not, send them a hammer and a jar of sand with a note that says, "Pound it."

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Erik W.

    Thanks I think your right!, I hope!

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Ask another lawyer what are your choices. The deposit is not meant for withholding no damage related claims, if I understand correctly. The last month rent should be collected separately unless the tenant express wanting to collect from security deposit.

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Sam Shueh

    Yes since the tenant did not pay last months rent, she agreed to have this withdrawn from last months rent. The damages was separate that we noted

    @Andrew B.

    Our mistake was we held a security deposit in bank on the lease, but sent the return of security deposit from a different bank, and we did not pay the interest.  

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    I just have never been sued before from a tenant, and just shocked its 10 times what the dispute is over!

  • Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    8y

    Lawyer up Son!!

  • Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    8y

    My vote is for the hammer and jar of sand

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Rick M.

    In Chicago there seems to be a lot more tenant lawyers then landlords!

  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    8y

    @A.R Shakir - get a lawyer, not returning the interest is automatically a 2x SD penalty.  I am not sure they can do much though

    https://www.cityofchicago.org/city/en/depts/dcd/su...

  • Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
    8y

    Drag it out

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Brie Schmidt

    Yes I made that mistake, I didn't realize it because the tenant  was there for 2 years,  I was suppose to pay every 12 months... 27K vs 2.6K just seems unfair... but I don't know.

    Any lawyer suggestions you can PM me?

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Franklin Romine

    I think I will be selling this rental, and rethink being a landlord again

  • Boston, MA · Member since 2012 · 100 posts · 54 votes
    8y
    Check your local laws. In MA tenant can sue up to 3x deposit if you do not place into an account. Good luck.
  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Plenty of pitfalls in this business especially when dealing with indivulaes looking to make a quick buck. Turn it over to your lawyer and have them respond. At this point you simply wait it out.

    I have received numerious letters from tennats lawyer and simply throw them in th egarbage (put in tennats file) but in this case better safe than sorry.

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y

    @Thomas S.

    Thanks....Never realized how bad chicago tenants law was....

  • Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    8y

    @A.R Shakir just curious, what was the rent per month given the security deposit was 10k? 

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y
    Kimberly H. The rent was 3550, the tenants credit score was very low and recently claimed foreclosure. I was hesitant with this tenant, but my realtor felt she would be great fit 😢
  • Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    8y

    Argh, to bad you hadn't asked us instead of the realtor who I assume was trying to get their commission for getting it rented? Did this realtor also suggest the 10k security deposit without warning you of the Chicago laws on security deposits?

  • Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
    8y
    Kimberly H. Never had a clue!
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