Hi everyone! Just wanted some opinions on my current situation. I have a multi -unit home just outside of Boston ( SUPER TENANT FRIENDLY STATE). I live pretty close to the home and thought hey, I can handle this house, its in the next city over. WRONG !!!!! Long story short, I rented out one of the Units back in June, and I had nightmare tenants from the start. They paid late the second month, made every excuse in the book. Paid late again the third month, I had to serve a Notice to QUIT both months. Now, in September they didn't pay at all! I literally could not deal with them and ending up hiring Property Management. They reserved another notice to quit, and they vacated on their own. Thankfully. The girl had a wicked attitude and demanded her security deposit back. Which obviously I have to return because it can only be used for damages. Anyway, its obvious I got stuck with what they call "professional tenants". I'm tired of people getting away with not paying and the landlord having to eat the cost. Property management advised me that its not worth going to court over. Its not the lost rent that irritates me, it is the principle, that they do this to other land lords and ultimately get away with it. Should I sue them in small claims court, or is it really not worth pursuing? Thoughts?

Why do you say “obviously” you have to return the tenant’s security deposit because “it can only be used for damages”? Security deposits can be used towards unpaid rent, and that’s what you should be using this tenant’s security deposit for. Don’t let this professional tenant bully you into returning it if they legitimately owe you money for rent.

Buy class A properties and you wont have to deal with class D tenants.

Why do you say that? I've never heard of a state where you can't use a security deposit for unpaid rent, and that doesn't appear to be the case in Massachusetts either: Quote:Landlords in Massachusetts may be allowed to keep all or a portion of a tenant’s security deposit for the following reasons: • - Unpaid rent. • - Unpaid water bills. • - Any unpaid real estate taxes that the tenant was obligated to pay. • - Damage in excess of normal wear and tear. Source: https://www.thebalancesmb.com/massachusetts-security-deposit-law-2125077 Here's another one:Quote:After a tenant moves out, the landlord may use all or part of the security deposit for the following reasons: • - Unpaid rent (unless validly withheld or deducted by the tenant) and, if applicable, water charges • - Unpaid increase in real estate taxes (only applicable if the lease contains a valid tax escalation clause) • - The cost of repair of damages caused by the tenant, other occupants, or their guests (does not include pre existing damage or routine painting, carpet shampooing, etc. that is performed because of normal “wear and tear.”) Source: https://www.mass.gov/info-details/find-out-what-landlords-can-use-security-deposits-for And another:Quote: When you move out, your landlord can use your security deposit to pay for: - Repairs for damage that are not "reasonable wear and tear." - Unpaid rent, unless you legally withheld rent for bad conditions. See Chapter 8: Getting Repairs Made. - Unpaid real estate tax increase, if your contract requires it.32 See Chapter 5: Rent. Source: MassLegalHelp: Security Deposits and Last Month's Rent Ultimately @Sharon Steenbergen, I would check with a local landlord-tenant attorney to be sure. But you don't want to miss out on money that is legal owed to you.

@Sharon Steenbergen Personally, I don't think you should give this tenant back their deposit. She left and didn't pay the September rent and now wants her deposit back? Yes, going to court could be a waste of time; however, if you remind the tenant that she will be responsible for the court and attorney fees if you both go to court and you win the case and that you WILL WIN because she didn't pay her rent for the last month. How does she expect you to pay the mortgage when she lived there? A tenant once tried something similar with us and I wrote a strong-worded email promising her I would fight the case till the end until someone runs out of money and I reminded her I have a large reserve. She backed off. Listen, the war (in business) happens at the level of words. REI lesson #1. As a landlord, you cannot afford to be timid. Fair, but firm. Oh, I would be more than happy to share my email template with you lol PM me

@Kyle J. In MA you cannot use SD funds towards unpaid rents. Given that this "professional tenant" knows how the system works, it is not worth going through the process and having the triple damages fine against you. Frankly, @Sharon Steenbergen, I know you're really upset with them but take this as an expensive lesson. This happened to me on my first property too and the tenant deterred me from buying more property in that timeframe because I was so discouraged with the landlord/tenant dynamic. Nonetheless, I preserved and continue the journey after some time and you will too. Move on with your life as they clearly have already. Sometimes it's a cost of doing business and you can write this off as vacancy in your taxes.

Thank you everyone for your kind feedback. I've decided to keep the deposit. If she wants to sue me thats on her dime. If anything I'll tell the judge she didn't pay, lets see if she goes through the hassle.

I finally went through my first eviction, and knew up-front it was only going to cost me more to file, considering the chances of collecting after a judgement are slim to none (plus I still needed the court to get them physically out). However, I had not actually been through the process and for that reason, decided to learn how it works by going through it - I consider it a good value, as there is no better source for accurate information than first-hand. I learned many things I would not have found out, and avoided misleading and inaccurate 2nd-party info. Case in point, you are saying you can't use the security for rent, and the other poster from CA found three sources from your state that says you can!?!?!? See what I mean? You go through it once and will have the real story.

@Sharon Steenbergen Take a look at your lease and do what it says. If it was my tenant, I would keep the SD. For example, my leases state that :if a tenant vacants prior to lease expiration, they forfeit SD..."

You actually dont know anything about the area my Units are in. I bought a fully renovated 2 Unit from an investor who had to unload on it quickly. So the purchase price does not tell you anything about the property at all. Dont assume what class neighborhood it is in and ask me directly. I dont appreciate your condescending comments. Nor do I see you owning anything in MA besides a “condo”.

Should I sue for back rent?

Philip Ganz

Lender · Fort Lauderdale · Member since 2017 · 190 posts · 117 votes

6y

@Sharon Steenbergen consider the rent lost. Not worth chasing the tenant in small claims because if you win - you will never collect

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Michelle McFarren

Real Estate Agent · Stockton, CA · Member since 2019 · 11 posts · 7 votes

6y

@Sharon Steenbergen I do believe that going to small claims court would be a complete waste of your time, an emotional process as well it’s expensive. However if you simply have the property management company go to a collection agency for the remaining money due that does show up on their credit and it will alert future property managers that they owe a debt to a property management company and or landlord even though there’s no evection on their record, and even though there is a very slim chance they will ever pay what do owe, you are attaching a red flag on these residents. Ps Regardless of what laws there are anywhere, if you make sure your Lease Agreement is created or looked over by a lawyer, and throughly explained and signed by all parties stating where deposits can go to in case of non payment etc. you CAN allow care and keep deposits. However, the residents could request mediation etc. fear can keep you from keeping what’s rightfully yours, and education is key to confidence when dealing with residents.

A class properties do give you A class residents, and being very diligent doing ALL your checks when processing, use all tools available to make sure your putting in responsible and qualified tenants.

Should I sue for back rent?

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