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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Alicia H.

Rental Property Investor · Oreland, PA · Member since 2017 · 51 posts · 32 votes

“He who represents himself has a fool for a client” ~Abraham Lincoln Best of Luck.

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Account Closed
Attorney · Skokie, IL · Member since 2016 · 270 posts · 109 votes
8y
@Brie Schmidt, yes the 2x only covers the damages for the violation of 5-12-080(a)(3) (not indicating the bank where the deposit would be held on the written rental agreement), 5-12-080(b)(1)(2) (not providing a receipt that complies with the act), 5-12-080(c) (not paying out interest within 30 days of the conclusion of each 12 month period) and 5-12-080(d) not returning the security deposit within 45 days of tenant vacating.
If the landlord doesn't provide a copy of the RLTO,there is another penalty of $100.
The statute also provides for attorney fees if the tenant prevails. I have had instances where tenant's attorneys have demanded up to $320 per hour from my client.
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Ahmed Motiwala I did just the first two( just not interest bearing) The 1st lease was March 2016 to feb 2017 She signed another lease from March 2017 to August 2017 then a lease extension inAugust till Jan 2018. I never did pay the interest after 12 months my negligence. I did not pay back the full security deposit because she did not pay last months rent and damages. Rent 3550 Deposit 10k Repairs 2650 I did not due my due diligence with a interest bearing account and not paying interest after 12 months. Never thought 27k would be the penalty....
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Brie Schmidt I think you had the right question, that I couldn’t figure how to ask Thanks
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Ahmed Motiwala Yes her lawyer is asking 300 dollars a hour !
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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
@Account Closed - Thank you for the clarification and input
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Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
8y
Originally posted by @A.R Shakir:
I did not due my due diligence with a interest bearing account and not paying interest after 12 months. Never thought 27k would be the penalty....
Just because the tenant’s attorney is demanding $27k, that doesn’t mean that’s the penalty. Sounds like all he’s done at this point is mail you a letter. Maybe you end up paying that, maybe you don’t. But the tenant’s attorney isn’t the one who gets to access penalties.
I’d consult with an attorney in your area and go from there.
Hope it works out for you.
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Kyle J. Thanks for the advice, I have heard from a couple attorneys already if you do not pay that interest in Chicago. It’s 2 times the security deposit plus the remaining security deposit owed. So even if the interest is 1 dollar
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Megan McGinty
Cleveland, OH · Member since 2018 · 50 posts · 16 votes
8y
Why did you charge such a high deposit..?
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Megan McGinty She had a horrible credit score,single mom, but a professional who went into foreclosure. She sent me a letter asking for a second chance. I guess I was the sucker
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Megan McGinty
Cleveland, OH · Member since 2018 · 50 posts · 16 votes
8y
Single mom has absolutely nothing to do with whether a tenant is a risk. And as a landlord I’d be very careful saying that.
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Megan McGinty I didn’t find that as a risk, that is the letter she sent me, stating her story
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Jesse Moran
Lees summit, MO · Member since 2013 · 32 posts · 25 votes
8y
What is the interest rate that is suppose to be paid? I thought the site said 0.01% not 1%. Could go fire out how that turned into $200. Maybe I am a little lost. 1% return on a savings these days in unheard of for the most part. Can’t even find a CD short term with that interest.
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A.R Shakir
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Real Estate Investor · Champaign, IL · Member since 2017 · 57 posts · 6 votes
8y
Jesse Moran 10k by 0.1 percent the penalty of not paying this is twice the value of the security deposit
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Megan McGinty
Cleveland, OH · Member since 2018 · 50 posts · 16 votes
8y
In the future I’d charge first and last months rent and regular security deposit to avoid this. Hope it works out for you.
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Jesse Moran
Lees summit, MO · Member since 2013 · 32 posts · 25 votes
8y
How did this end up playing out?
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