What can a landlord do after tenant used security deposit as rent and damaged property?
Q: Whatcan Idoifmy tenant used their security deposit as their last month’s rent and then left the property damaged?— Brenda
A: The security deposit is supposed to be used to offset potential damage to your rental property and should not be used as rent.
Many landlords will collect both a security deposit and the last month’s rent when beginning a newlease to avoid this problem. The landlord must keep these deposits in a separate bank account and tell their tenant where the money is held.
Whenthe time comes, the property owner may transfer the advance rent fromthat account to their “operating” account to be used as rent butmay not transfer the security deposit to pay the rent if their tenant falls behind.
In your situation, when your tenant did not pay the finalmonth, you could have demanded payment or started an eviction.
Many property owners opt to do what you did because it seems tomake sense only to find the home damaged, leaving them with the choice to eat the cost or sue their former tenant for the repair costs.
There is acommon misconception that the tenant is only responsible
for repairs up to the security deposit amount. The reality is that tenants are responsible for the cost of repairing any damage they caused.
In your case, you will need to sue your tenant for any unpaid rent and the repairs.
If a landlord does not followthe correct procedure
at the end of the lease or does not return the unused portion of the security deposit, the tenant can sue to force their landlord to return the funds.
Finally, if the last month’s rent is being held and the tenant breaks the lease early, the landlord can usually keep the funds to helpmake up for their
tenant’s breach of the lease agreement.
Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/ askpro.