Tenants moving out early....do I return their deposit.
I have tenants who just signed a year lease as of March 1st. Now they bought a house and are moving out after only 3 months. I specifically state in my lease in bold that "if the lease is broken for any reason (this includes leaving early) then the security deposit will not be returned."
I mentioned this to them and now they are threatening to take me to small claims court as well as call the state of Utah for over a dozen violations (no idea what if these are made up - they won't tell me). If I am in any violation I would want to fix them. Also, they haven't moved out yet, so they could do damage to the house.
In their defense, they did pre-screen some tenants and find me a replacement. I did have to spend about 10 hours checking references as it took applications to find suitable candidates.
I will have no break in tenancy. I don't want to start a fight, but what is the reason for having a year lease if tenants never abide by them? I have only had 3 tenants out of dozens who have finished out a lease here in Moab. My Colorado property has never had this problem.
I want to do the right thing and would love advice from both the legal and the ethical side.
Thanks!
Most Popular Reply
Purpose of deposit is to keep you whole in the case of damage and/or early termination.
If you are not out any repairs or rent, you will open a can of worms keeping the deposit as far as I understand.
That being said, I would not return a penny until they are out and a walk through is completed and new tenant has moved in. Cover any repairs, cleaning, etc as well as any days/weeks vacancy between the two and go from there. No matter what, I would follow the letter of the law and your lease regarding timing, etc (No checks on move out date).