They broke lease but are still living there....

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They broke lease but are still living there....

Charlie Moore
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes

Broke the lease but I’m letting them stay.

Am I required to give them security deposit back???? ( they didn’t pay for 50 days on late rent but finally got it paid up )

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
7y

So they're now caught up on rent

Still in the unit 

What would you keep the deposit for?  

If they are late on rent your options are evict or no - you can't really choose to let them stay then charge them an extra $1500 or such because you're annoyed they paid late. 

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    So they're now caught up on rent

    Still in the unit 

    What would you keep the deposit for?  

    If they are late on rent your options are evict or no - you can't really choose to let them stay then charge them an extra $1500 or such because you're annoyed they paid late. 

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  • Account Closed
    Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes
    7y

    @Charlie Moore keep the deposit dude

    1Reply
  • Charlie Moore
    OP
    Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
    7y

    @Natalie Kolodij

    Well, I think I should be able to hold the security deposit

    0Reply
  • Charlie Moore
    OP
    Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
    7y

    @Fili Aguirre hell Yeah man

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Charlie Moore:

    @Natalie Kolodij

    Well, I think I should be able to hold the security deposit

    Hold it like...until they move out? Sure. 

    Can you just keep it for no literally reason? I'm guessing no.  

     If they don't owe you money, didn't wreck the place, you renewed their lease I don't think you can just choose that money because they were late on rent? 

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    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Yes, you continue to Hold the deposit.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    It sounds like you are letting them stay now that they are current with their rent.  If that is the case, then you hold onto the security deposit until they move out.

    1Reply
  • David Gonzalez
    Realtor · Camarillo, CA · Member since 2014 · 162 posts · 102 votes
    7y

    @Charlie Moore check your state laws but here in California the tenant is owed an accounting of their deposit when they move out even if they owe the landlord money. What do you mean by the broke the lease? Did they just leave the place or did they not pay the rent/follow a rule?

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  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    It's case law that tenants who enter the eviction process thereby forfeit the full amount of their security deposit due to the emotional damages they inflict on the landlord -- the deposit automatically converts to a judgment to compensate you for your pain and suffering not knowing what's going to happen to your rental. The money's yours. Again it's case law, Kenneth Samuel Moses versus Commonwealth of Virginia.

    1Reply
  • John N.
    Panama City, FL · Member since 2017 · 83 posts · 77 votes
    7y

    @Jim K.

    You do understand that Virginia case only carries weight in Virginia?

    1Reply
  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    @Charlie Moore

    You’re gunna have to clarify here. Is rent currently paid up to date?

    What lease clause did they break?

    Why do you wanna keep security deposit?

    0Reply
  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    7y

    @Charlie Moore

    That’s why there are leases. So people can’t just take money because the “feel they should” what if their AC broke for a day and they “feel they didn’t need to pay rent because of that?”

    Had you evicted them you’d probably be entitled, but you didn’t, So your not.

    I suggest a property manager and/or attorney. In Indiana holding security deposits wrongfully can get expensive fast.

    0Reply
  • Hal Fitzgerald
    Chicago, IL · Member since 2019 · 91 posts · 21 votes
    7y

    They are still in, so you need to keep the deposit. Until next time they move out, you can return the deposit.

    0Reply
  • Thomas Dougherty
    Member since 2019 · 135 posts · 25 votes
    7y

    Check your state laws, but in California, when they move out, even if they owe money to the landlord, the tenant will owe them a deposit.

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