Tenant not paying last month rent-Told me to use Security deposit

Tenant not paying last month rent-Told me to use Security deposit

Member since 2020 · 2 posts · 0 votes

Hello BP family, this is my first post.

I have 5 rental properties, all SFH, in a B to B+ neighborhood. I currently have a tenant who gave me 30 day notice on 10/21 to move out on 11/31 and is refusing to pay the last months (11/1) rent but telling to take it out of the security deposit. This will leave me no recourse for any damages found during the walk through. Is there any action I can take to make him pay the last month rent or am I stuck with using the security deposit? Appreciate any feedback.

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Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y

I’m sure your lease specifically says security deposit can not be used for last months ent as almost all leases ha for at least 10 years when it became a common practice. 

If your state is open for evictions follow the rules and give them pay or quit notices, apply late fees, file for eviction. Explain to them it is allowed under the lease and if there’s no damage you’ll be returning the deposit to them in about 30 days anyway. 

Maybe schedule a walkthrough with 24-48 hours or whatever’s required in your location. Maybe you see the place looks like new, or you see it’s destroyed. If it’s not like new take pictures that you’ll be using at eviction hearing. 

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    I’m sure your lease specifically says security deposit can not be used for last months ent as almost all leases ha for at least 10 years when it became a common practice. 

    If your state is open for evictions follow the rules and give them pay or quit notices, apply late fees, file for eviction. Explain to them it is allowed under the lease and if there’s no damage you’ll be returning the deposit to them in about 30 days anyway. 

    Maybe schedule a walkthrough with 24-48 hours or whatever’s required in your location. Maybe you see the place looks like new, or you see it’s destroyed. If it’s not like new take pictures that you’ll be using at eviction hearing. 

  • Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    You are not "stuck" using the security deposit as rent.  You are correct that if this is being used there is no leeway for you should the tenant vacate leaving damages above normal wear and tear.

    Your tenant is "stuck" paying the rent for November.  Explain this to the tenant and if they still refuse provide the required Pay or Quit notice for your state and begin the process of eviction.  Often this notice alone will make rent magically appear.

    It's not unusual that a tenant may want the landlord to use the security deposit for rent the last month they are living there.  Some mistakenly assume this is the last months rent.  Some need to save up for the next rental they are going to and need both the first months rent (or sometimes the first and last months rent) as well as a security deposit.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    Tell them no.  The deposit is not to be used for rent.  They need to pay their rent.  You can look to see if there are local laws that will help support you.  Do you have wording to that effect in your lease?

  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    Never accept security deposit as rent. If you check the landlord - tenant laws in your state or consult a lawyer, it would be a better idea. If they did not make a payment on rent, the next step would be to send a legal notice to make a payment or quit. 

  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    Treat it just like any other non payment of rent.   Follow your process or providing notice and beginning the eviction process.   Let them know you are serious. 

  • Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    5y

    SD is not to be used as rent during the term can only be used for back rent owed on move out.  Tell them no, if they don't care you can start the legal process.  Odd are you will use it for back rent when they move out.  

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