Tenant put down a deposit to hold apt but have bedbugs!

Member since 2019 · 5 posts · 1 vote

Prospective tenants put down a nonrefundable deposit to secure an apartment. Nothing signed just texts agreeing. Good references but started asking to buy the 3 beds in the unit so I get red flags! Called their landlord and she admitted it but the tenants were not upfront. I'm in Erie county n.y is it enforceable to refund though it's no fault of mine and I'm losing a month putting it back on the market? Ty gina

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Karen F.

Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes

I completely understand you. You absolutely do NOT want to rent to these people! Or to anyone else who comes from this address. It's very, very difficult to get rid of bedbugs in a multifamily, because it's very difficult to get every household to comply with prep and "sleep safe" precautions. And they absolutely WILL inadvertently bring in bedbugs with them in their possessions, even if they come without furniture.

So, you have an implied contract with them, because you took their money. You now don't want them, for a reason that you can't really defend, but that would make your unit potentially worthless. Give them all their money back immediately, including their application fees, every penny you took from them, and tell them that the unit is not ready for occupancy. No more details, no more contact. Take the unit off the market immediately. If it was in need of anything, do it now. Paint, flooring, whatever. Then put it back on the market, and just ignore their numbers if they call. Save their numbers in your phone as "bedbug" and never answer their calls.

You cannot break the contract and keep their money too.

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
Who are you? The Property Manager? A friend with a set of keys?
Your topic description says you have bedbugs but the text of your question says they want to buy some beds?
I'm very confused.
If you have bedbugs, hire a professional to remove the beds and treat the home before the Tenants move in. If the treatment will take longer than two days, then ask the Tenants if they want to wait until treatment is finished or if they want the refund.
If tenants are "asking to buy the 3 beds in the unit" then I would say you're probably renting a low-income unit to some low-income people and that carries all kinds of red flags.
Bed bugs. "Non-refundable deposits" which aren't legal. Accepting funds without a written agreement. Tenants that want to buy three beds left in the rental from a previous tenant.
Yes, I see a lot of red flags.
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Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
6y
The post is a little confusing, but regarding deposits to secure a rental unit... the few times I have done this, I have informed the possible tenant that I will continue to adverstise the unit. Never take your property off the market until you have a signed lease.
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Mike McCarthy
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
I would hesitate not refunding a deposit unless the tenant is backing out. I can’t state to the legality one way or another, but I think you’re asking for trouble withholding the deposit.
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Gina K Vallone
OP
Member since 2019 · 5 posts · 1 vote
6y
Thank you for responding. Sorry I'll explain better! I am the owner/landlord. The prospective tenants have bedbugs in the house they are in now. My apt is immaculate. The beds they wanted to buy are mine not a former tenants. Previously a BandB. My apt is in a great neighborhood, beautiful home at an average rate not high or low. The 3 prospective tenants are on the young side but all work, glowing references. Nice people.
Haven't signed a lease yet because this was a good faith deposit to hold the apt. Nonrefundable because I take it off the market don't show it or accept offers. It's spoken for. They pay balance before the move in date then we sign a lease. Perhaps that's where I went wrong.
The market is somewhat expensive its a desirable neighborhood so I understand when young people need to split the payments. As long as it's paid in full before move in. It definatly doesn't make them "undesirable".
They are not backing out but showing an slight unwillingness to take procautions and preventative measures my pest control company suggested.
so sorry this is long! I guess my question is: is it proper to cancel their move in date if they are not willing to abide the preventative measures and
do I return the deposit (not security) but to hold it like a good faith deposit. Nonrefundable was agreed in text not signed.
It's their issue, a potential health risk to me and my other tenants
It's no fault of mine, my unit is ready and absolutely immaculate.
Thank you all for your help I've been a landlord over 20 years but never ran across this one!

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Gina K Vallone
OP
Member since 2019 · 5 posts · 1 vote
6y
You guys/gals seem like high level management sorts maybe I should clarify, I'm a small potato, my home has 3 units, I've had it 13 years and only evicted one person after he turned to drugs and after trying to work with him for 6 months. People leave because of circumstances like they've lost their job or a couple broke up, not because of unhappiness or problems. I'm in a small city so I see old tenants out and about all the time and on extremely friendly terms, I do have another rental but it's occupied by someone I've known for 30 years. The last tenant who moved out was with me for 11 years.
none of this matters in terms of the legality of a non refundable deposit but may explain that i don't have 100s of tenants, they are not just a number and so that's why I work with them individually.
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Karen F.
Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
6y
I completely understand you. You absolutely do NOT want to rent to these people! Or to anyone else who comes from this address. It's very, very difficult to get rid of bedbugs in a multifamily, because it's very difficult to get every household to comply with prep and "sleep safe" precautions. And they absolutely WILL inadvertently bring in bedbugs with them in their possessions, even if they come without furniture.
So, you have an implied contract with them, because you took their money. You now don't want them, for a reason that you can't really defend, but that would make your unit potentially worthless. Give them all their money back immediately, including their application fees, every penny you took from them, and tell them that the unit is not ready for occupancy. No more details, no more contact. Take the unit off the market immediately. If it was in need of anything, do it now. Paint, flooring, whatever. Then put it back on the market, and just ignore their numbers if they call. Save their numbers in your phone as "bedbug" and never answer their calls.
You cannot break the contract and keep their money too.
2 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
Or, just explain that unless they agree to comply with what your exterminator says needs to be done you can not rent to them.

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Account Closed
Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
6y
Just give them their money back and move on. This isn’t a good situation to get into at all. I’ve got a friend that works in hotel services and bedbugs are no joke. Years ago I spent over 4,000 to get rid of them once. Take it from experience it isn’t something you want remotely around your property.
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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
6y
Return their deposit and cancel their plans to move in to your space. Find a new tenant. Better to find out about this before they move in and become your problem. Bullet dodged!
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Gina K Vallone
OP
Member since 2019 · 5 posts · 1 vote
6y
Your all right! They were resistant to every preventative measure, wouldn't even get bedbug mattress covers or clear plastic bags, mostly just acted annoyed that I wanted to address it and take steps. So just not a good fit. And found out one was way behind on his rent, I'm feeling like the glowing recommendation was just to be rid of difficult infested non paying tenants. Thank you so much for the good advice!!
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
Hey wait! There's insurance for everything else, right? Why not a bedbug policy? Get the property inspected before move-in, have the buyer purchase a bond about infestations, and if they get bugs during their tenancy, make a claim against the bond.
I'm sure all y'all can tell my experience is in real estate, not insurance. But whatcha think? LOL.
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Gina K Vallone
OP
Member since 2019 · 5 posts · 1 vote
6y
That's a good idea, they haven't even wanted to buy mattress covers or clear plastic bags so I doubt they would take an insurance policy but it's a good idea I'll check with my agent I may do that for my own peace of mind! Thanks Marc I would have never thought of that!
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Judy Parker
Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
6y
Don't rent to them. They caused the bedbugs in their current unit and will bring those bedbugs to your unit.
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
1Return the money
2dont rent to these kids
3move on with life
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