Posted by Cathleen(TX) on April 02, 2005 at 18:36:13:
You sound like a nice guy-BUT- dont do it. You need the place vacated and returned to you as it was when handed over.(well, as close to)Anyway, the deposit is to take care of any items that need to be taken care of to bring it back to rentable standards. How long will it sit vacant before you get another tenant in there? Will this tenant feel sorry for you and pay the rent while the unit sits empty?? Only if she vacates the unit and stays in a motel(or with family, friends) in the interim will you be able to inspect the unit and return the deposit for her to use to move into the new place.
I have a good tenant that will be moving because she needs
to lower her monthly payment. She would like to use her deposit on her next place. I’d like to help her out but
I’m not sure how to do it. I could do the inspection early
I suppose but that doesn’t thrill me. Need advice. Thanks!
A lot of good advice, here’s one more - Posted by Randy (SD)
Posted by Randy (SD) on April 03, 2005 at 13:10:44:
You say she was a good tenant, and you want to help her out. I agree with the other responses “do not” refund her security deposit early, however you can agree to “transfer” her security deposit to her new landlord. This would basically consist of an agreement between you, your tenant and her new landlord that when and ONLY when she has vacated the property left it in broom clean acceptable condition you will forward her security deposit directly to her new landlord. Assuming he has already checked her references (including you) he may be agreeable to this, after all he wants the new tenant and the security deposit, you want the unit vacated in a clean and presentable fashion all of the responsibility still rests with the tenant… win/win/win
It sounds like you have placed yourself a little too close to here circumstances, and your empathy is outpouring here, to your potential detriment.
When folks have a difficult time saying NO to requests like this one, it is often easier to “blame” this on someone else… leaving you out of the equation. So what you could tell her is that your Lender requires you to follow strict guidelines, and if it weren’t for that you would be happy to do so… but sorry, the answer is NO. Otherwise, you stand the chance of violating your security agreement with the Lender, and you just can’t do so.
From a full time landlord with over 25 years experience, don’t give her the security deposit early. If you do you lose all of your leverage. Once she has nothing at stake, who knows how she’ll treat the rental.
Tell her it is, " our policy to settle up with the deposit once she vacates, leaves the place clean and hands over the keys ."
No Good Deed Goes Unpunished, at least in business. I would not give the woman back her security deposit at all if she is breaking the lease (liquidated damages) subject to the law, of course. Under no circumstances would I give her back her security deposit early!!! To do otherwise is asking for disaster. Once she gets that security deposit back, you have absolutely no more leverage over her. She may just decide to stay and stop paying rent. She may decide that she doesn’t have to be careful moving out, because you won’t be able to collect on anything that she breaks when moving. She may leave a house full of trash and debris and what are you going to do about it without a deposit?
Run your business like a business. If you want to do charity work, volunteer at church.
Posted by dealmaker on April 02, 2005 at 23:09:23:
It’s a SECURITY deposit, right? If she’s breaking the lease that’s my SECURITY against ME losing money. She doesn’t get hers until I’M made whole, re-rented.
If it’s the end of her lease, tell her to get everything done as early as possible and you’ll inspect as soon as EVERYTHING IS OUT AND YOU HAVE THE KEYS. Then hand her the check right then.
BTW, how did YOU end up with a tenant who is operating so thin?
Let her know that you will give her a great reference for her new landlord. And then follow the landlord/tenant laws for your locality with regard to the security deposit. i.e., don’t bend the rules to accomodate her.