Tenant deposit + Prorated Rent

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Tenant deposit + Prorated Rent

Quandra Adams
Durham, NC · Member since 2013 · 78 posts · 14 votes

First-time landlord here so I'm still learning the ropes. My tenant gave me 30 days notice for his move out date which is supposed to be the 31st of this month. He came to me last week and told me that he would be gone by today. I returned his full deposit back to him which he deserved because he returned the apartment back to me in the condition it was a when he rented it. Then he asked me about the remaining balance. I was a little confused since he said he should also get prorated rent for moving out early. Is this the case and how do I handle this since his 30 days notice was for the end of the month?

if he is owed the prorated amount I have no issue returning it to him and I am still within the 30 days to return any and all deposits. I'm just looking for Clarity on the situation. I'm in North Carolina if it matters.

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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y

No you don't owe it. He rented by the month. It was his decision to leave early though he was entitled to use the property the full month.

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y

    No you don't owe it. He rented by the month. It was his decision to leave early though he was entitled to use the property the full month.

    6Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Quandra Adams I have been in that exact situation. I gave the tenant a very nice patient explanation. How long is a 30 days notice? 30 days.

    4Reply
  • Quandra Adams
    OP
    Durham, NC · Member since 2013 · 78 posts · 14 votes
    6y
    Originally posted by @John Thedford:

    No you don't owe it. He rented by the month. It was his decision to leave early though he was entitled to use the property the full month.

     His lease was actually a year. Not a month. Does this change anything?

    0Reply
  • Vanesa Gonzalez
    Rental Property Investor · Miami Beach, FL · Member since 2017 · 105 posts · 59 votes
    6y

    @Quandra Adams It doesnt matter that his lease was for a year. When you rent long term, you pay per month. You dont owe him anything.

    2Reply
  • Ryan Deasy
    Lender · Farmington, CT · Member since 2015 · 542 posts · 321 votes
    6y

    @Quandra Adams i don’t think you need to give it back but i would. i have found that erring on the side of giving usually lends well to me in the future.

    4Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    No.  He paid by the month and gave you 30 (or 31) days' notice.  The lease runs from the first to last day of the month.  Unless you had previously agreed for let him move early (ie move out by the 15th, so a new tenant can move in), he's responsible for the entire month's rent.

    2Reply
  • Frank Procopio
    Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
    6y

    You do not owe him anything

    3Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    6y

    i would laugh at this guy ! Does he go to McDonald’s and ask how much one fry cost at the drive through ?

    3Reply
  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    6y
    He does not get any money back when he vacates, because he agreed to rent it for the whole month. That's like ordering a plate of food at a restaurant and asking for a partial refund because you only ate half the food. You agreed to rent the unit for the month, its your for the month. However, only exception, if you are able to get it rented out before the first of next month, you cannot collect rent for the same day twice (depending on local laws). In that case, I would refund any days that were rented out twice.
    5Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    He owes rent through the 30 days of notice. He moved out early for his own benefit, not for yours. 

    You don't owe him anything.

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    4Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Quandra Adams

    In addition to what everybody said, you never give back the damage deposit that quickly. You can’t possibly know if anything is wrong with the place for at least a couple weeks. Sometimes you notice things while cleaning, when another tenant moves in and takes a shower or uses the washing machine, etc. If the law states 30 days, take the 30 days to see if anything is broken or wrong.

    5Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    6y
    How did you give the money back? Just hand it to them? Did you get a receipt? Some states, without a certified letter and certified fund receipt, you may open yourself to them saying they never received it and have to pay 2-3 times damages.
    2Reply
  • Quandra Adams
    OP
    Durham, NC · Member since 2013 · 78 posts · 14 votes
    6y
    Originally posted by @Mike S.:

    How did you give the money back? Just hand it to them? Did you get a receipt? Some states, without a certified letter and certified fund receipt, you may open yourself to them saying they never received it and have to pay 2-3 times damages.

    Money order. I have the other half of the receipt.

    1Reply
  • Quandra Adams
    OP
    Durham, NC · Member since 2013 · 78 posts · 14 votes
    6y
    Originally posted by @Anthony Wick:

    @Quandra Adams

    In addition to what everybody said, you never give back the damage deposit that quickly. You can’t possibly know if anything is wrong with the place for at least a couple weeks. Sometimes you notice things while cleaning, when another tenant moves in and takes a shower or uses the washing machine, etc. If the law states 30 days, take the 30 days to see if anything is broken or wrong.

     You are absolutely right and I now see that. 

    0Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    6y
    Originally posted by @Quandra Adams:
    Originally posted by @Mike S.:

    How did you give the money back? Just hand it to them? Did you get a receipt? Some states, without a certified letter and certified fund receipt, you may open yourself to them saying they never received it and have to pay 2-3 times damages.

    Money order. I have the other half of the receipt.


    Money orders are not a certified form of payment. There is no proof that you didn't fill out your name on the money order and their name on the receipt. If they take you to court, they could say they never received it. The proof is on you then to produce delivery verification. Will it happen? Maybe not, but there are many sites out there telling tenants how to exploit landlords who don't follow the prescribed legal requirements of their state.
    1Reply
  • Quandra Adams
    OP
    Durham, NC · Member since 2013 · 78 posts · 14 votes
    6y
    Originally posted by @Vanesa Gonzalez:

    @Quandra Adams It doesnt matter that his lease was for a year. When you rent long term, you pay per month. You dont owe him anything.

    I feel like this is a super stupid question but his start date for his lease was October 26th 2018 so I dated the end of it for October 26th 2019. He was trying to say that since he paid for it through the 31st he gets money back. Does this matter at all? I am just really trying to understand  and cover my bases. Thank you in advance!

    0Reply
  • Khalid Bryan
    Real Estate Broker · Fort Lauderdale, FL · Member since 2018 · 196 posts · 191 votes
    6y

    @Quandra Adams I’m in Florida but I don’t believe you owe him money for being out early.

    0Reply
  • Kevin Nickerson
    Member since 2019 · 56 posts · 16 votes
    6y
    Originally posted by @Theresa Harris:

    No.  He paid by the month and gave you 30 (or 31) days' notice.  The lease runs from the first to last day of the month.  Unless you had previously agreed for let him move early (ie move out by the 15th, so a new tenant can move in), he's responsible for the entire month's rent.

     Not exactly true, the end date of the lease is the date stated on the lease. 

    2Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 562 posts · 377 votes
    6y

    @Quandra Adams

    You don’t owe him anything. If he rented the property for a year, he is responsible for the unit until the year is up.

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    0Reply
  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    6y

    @Quandra Adams

    If he moved out before his term and you didn’t agree to it, I believe you don’t owe him anything. In most situations is typical for one yet contract to continue the lease month to month, same terms. But that needs to be included in the lease.

    30 days notice to move out doesn’t necessarily mean he is abiding to the contract term.

    If he moved out prior the last 30 days of his lease without proper notice, I would withhold portion of the deposit for damages. Now I have to find a new tenant within less than the 30 days. Typically, people moved out at the end of the month. If I loose that wo do frame, it likely means another month of vacancy.

    Next time, prorate rent at the beginning of the lease. If it’s a year lease, they pay X amount of rent for Y amount of days/30, and at the beginning of the next month, time starts for whatever term is in the lease. But put that in the lease. No verbal for prorated rent! Good luck.

    1Reply
  • Andreas W.
    Durham, NC · Member since 2013 · 502 posts · 215 votes
    6y

    @Quandra Adams

    Your lease determines the conditions. When did the lease start and what is the end date? Do you require 30 day notice to the end of the rental period or to the end of the month? You might have to give  the tenant 5 days worth of rent back if he paid until October 31st but the lease ends on the 26th.

    0Reply
  • Amer Mallah
    Monkton, MD · Member since 2014 · 32 posts · 15 votes
    6y

    Also check your state laws for any documentation that needs to be a part of returning a security deposit. You may need to send a certified letter clearly stating how the balance was calculated. 

    1Reply
  • Patrick Menefee
    Real Estate Coach · Charlotte, NC · Member since 2016 · 399 posts · 341 votes
    6y
    Originally posted by @Quandra Adams:
    Originally posted by @Vanesa Gonzalez:

    @Quandra Adams It doesnt matter that his lease was for a year. When you rent long term, you pay per month. You dont owe him anything.

    I feel like this is a super stupid question but his start date for his lease was October 26th 2018 so I dated the end of it for October 26th 2019. He was trying to say that since he paid for it through the 31st he gets money back. Does this matter at all? I am just really trying to understand  and cover my bases. Thank you in advance!

    I think this is the key right here. I'm certainly not a lawyer, however if the lease is up on the 26th and he is out of the unit on the 26th, you should pay him for the 5 days he isn't responsible for. I would ultimately defer to someone who has explicit legal knowledge, but the end date of the lease absolutely does matter.

    When I look back to any time I've rented, I paid through the end of the month but received a refund if my lease ended prior. If he paid through the 31st, his lease is up on the 26th, and he moved out on the 26th, you should pay him back those 5 days. If he moved out on the 20th, you should still pay him back for only the 5 days. Hope that helps.
     

    2Reply
  • Quandra Adams
    OP
    Durham, NC · Member since 2013 · 78 posts · 14 votes
    6y
    Originally posted by @Nathan Gesner:

    He owes rent through the 30 days of notice. He moved out early for his own benefit, not for yours. 

    You don't owe him anything.

    Nathaniel, thank you for responding. He's trying to say that since he turned the keys over on the 17th that he had no possession so I order him for the 17th through the end of the month.  Even that doesn't justify it for me because I only did his walk through on that day because he was going back to his home town which is an hour away.  Does him turning in his keys matter? The lease still ended on the 26th no matter if he had keys or not. 

    Looking forward to your reply,  thanks!

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y

    @Quandra Adams, I think @Nathan Gesner said it best. He left early for HIS convenience, not yours. You do not owe him prorated rent. 

    You prorate when they do YOU a favor, not when you do THEM a favor.

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    2Reply
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