How to collect security deposit after tenant move in?

Question

I failed to collect the security deposit before the tenant moved in. He said he would pay me the next day. He did pay all the 6 months rent upfront. He hasnt paid the security. My rookie mistake for taking him on his word.The utilities are still in my name since I haven't given him a copy of lease yet so he can switch it over but I don't want to hand it over until I get the deposit. Property is located in South Florida, Dade County. What can I do?

Account Closed · Answer

Give him a pay or quit notice for materially breaching the terms of the lease.  Not sure if it would actually fly in court, but it might scare him enough to pay you.  If not, then find out if you can evict on those terms in Dade County.  If not, file a small claims court action for the money he promised to pay you and didn't.  It's a breach of contract, and you can at least sue for that.  Legal notices are usually pretty effective.  Some tenants check the waters to see what they can get away with.  When they find out paying rent is the priority, since they'll get kicked out if they choose to get a new tattoo instead (yes, been there), they will usually decide to pay you and use their credit card for the tattoo.

Just need to let him know you mean business.  Odds are good that he's planning on just using it as a short term rental, anyway.  Live and learn.  Everybody here has made mistakes, so don't feel alone in that.

Benjamin Gonzalez · Answer

Thank you guys for all your suggestions. I definitely won't make this mistake again and will amend my future lease to have some of the clauses you mentioned.

Before I had seen all these great suggestions, I ended up contacting a real estate attorney. She said she could start off by sending a demand letter to them. Once I mentioned that my attorney would be contacting them to pursue further action they paid up right away. Also changed the water to their name that day.

thanks again guys.

Lynnette E. · Answer

I'd tell him that he needs to pay the security deposit by COB today and that he then has 24 hours to have all utilities in his name or the lease is voided.  Put that as an addendum to the lease.

All my leases say they are void if the person does not change the utilities to their name in 24 hours of signing, pay the first month rent and deposit at signing.

Matt Devincenzo · Answer

Convert the payment to security and XX amount advance rent (I never make the security the same as 1 months rent, usually just a little less so it can't be used for last month's rent). I'd have the discussion verbally in advance, and then formalize in a lease addendum. When you call him to discuss just mention that you'll provide the executed lease and you can both sign the addendum concurrently...bring two copies and sign both. You walk away with one, and he walks away with one.

Aigo Pyles · Answer

Give him an updated lease copy, indicating that he has 5 months upfront.

Benjamin Gonzalez · Answer

That's what I was thinking but then both sides would have to resign an updated lease correct?

Karl B. · Answer

Tell him one of the six months of rent is now the security deposit.