Inherited Tenant's deposit. BAD TENANTS

1 Reply

Hi Everyone,

This is a new situation for me. I bought a 5plex in a nice area, I also live in one of the units. One of my inherited tenants on the third floor is moving out and buying their own home in April. Their lease ends in May, but thats ok. I want them out.

They supposedly, via the previous sellers flushed kitty litter down the drains requiring plumbing to be redone at a $5000 expense before I purchased the property. I inherited all of their security deposit. $850.00. Should I be credited with this despite the previous sellers expense? Assuming they, their 3 cats, 1 large dog, and bunny all move out and keep the place in good condition. (only 2 cats were allowed on their original lease.  I am glad they are leaving, but just don't know what I can legally do with their security deposit.

-PS. I live in Pennsylvania.



You should have been credited with the tenants security deposit when you closed on the purchase.  You should then handle the security deposit just like any other tenant moveout.  Evaluate the property, itemize damages, and send them a letter and the remaining deposit (if any.)  What the previous owner did is irrelevant.  He or she should have sorted that out with the tenant at the time.  If you weren't credited with the deposit, and there's no documentation that would support a claim that it had been used for some previous purpose, you're on the hook for it.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here