Tenant over-payment of last months rent

Vendor · Vancouver, WA · Member since 2017 · 65 posts · 31 votes

I have a tenant on a month-to-month lease. I collected 1st and last at lease signing. She has been there for 18 months.

August 1, right on time I get a payment from her.

August 2, she sends a text giving notice. She wants to move out during 3rd week of August and is fine paying for the full month. Is asking for a refund of the (now) Sept rent she paid 18 months ago. She has been a decent tenant, and I'm not expecting any damage or cleaining fee. I paid for a cleaning crew prior to her moving in, and then she hired another one to clean my clean SFR.

I wish she hadn't paid me yesterday, but is there any valid reason for not doing the refund of the last month rent? I'm not sure the whole point now of why collect it to begin with.

Thoughts?

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Peter M.

Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes

Don't refund anything until she is out. Period.

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Brendon Woirhaye
Rental Property Investor · Whittier, CA · Member since 2014 · 324 posts · 268 votes
8y
Do you have a security deposit, or is your last month what you'd take any deductions out of?
I'd avoid refunding it if there is no security deposit. You might be surprised at what you find when they move out.
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Garen T.
OP
Vendor · Vancouver, WA · Member since 2017 · 65 posts · 31 votes
8y
My lease says that they have to pay for all damage above normal wear and tear, and I have a form that specifies each charge. They agreed to that upon move-in.
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Randy E.
Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
8y
Originally posted by @Garen T.:
My lease says that they have to pay for all damage above normal wear and tear, and I have a form that specifies each charge. They agreed to that upon move-in.
At lease signing, in addition to collecting first month and last month, did you also collect a separate Security Deposit?
You may have a statement in your lease that says the tenant is responsible for all damage, but there is no way to guarantee the tenant actually pays for any damage. The Security Deposit is a partial guarantee that you can collect at least some of the money for damages to the property. If you did not collect the Security Deposit, you should not be so quick to return any monies at this point.
No refunds should be made by you to the tenant until the tenant has moved all their belongings out and returned the keys to you. At that point, you as the landlord should walk through the property and inspect it for any damages. If you find none and are satisfied with the condition, refund the tenant as much as you see fit.
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Peter M.
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
8y
Don't refund anything until she is out. Period.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y
What does your lease say about providing notice. If one months notice is required then giving notice August 2 means she is liable for rent to the end of September. Notice to terminate must be given prior to the beginning of a rental period, prior to the first of the month. This is the reason why LMR is collected to prevent tenants from stiffing a landlord at the last minute.
If you can find a replacement tenant for the first of September you can refund her LMR otherwise she is responsible for September rent. There is no reason for you to suffer any vacancy due to her inconsiderate behaviour.
If your lease or state codes require more than one month notice she is on the hook for that full period beginning Sept 1st or until the unit is rented. Never allow exiting tenants to take advantage regardless of how good of a tennat they were. They could care less about your business and you should feel the same of them.
Money trumps feelings in business.
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Ericka Parrott
Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
8y
I agree don't refund anything until well after she moved, so you can fully access the interior for your inspection. On the next tenant make sure the lease reads "security deposit" and not just last month's rent. Always take a security deposit.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
The money you hold is for last month's rent but she didn't give you notice in time to apply it.
My response would depend on how good of a tenant she is, the condition of the property, etc. If she were really good, I would probably cut her a check once her August rent clears. If she is less than stellar, I would wait and refund the last month's rent with the deposit.
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