Maximum Days to Hold the Rent/Depost

Maximum Days to Hold the Rent/Depost by uslaw12 (Minnesota) on June 6, 2012 @01:03

My tenants already signed a lease, paid the deposit ($1000) and the first month's rent ($1000). Before they were to move in, they wanted to terminate the lease. They were complaining the wall needed to be repainted and the carpet needed to re-cleaned. There were no documented agreements on any of these and I believe the rental property is in good, if not mint, condition. Not wanting to deal with them in the future, I agreed by text messaging them to release them off the lease and asked them to return the rental keys first. Their deposit as well as their first month's rent will be returned within the following five business days after they surrender the keys. However, the tenant and their lawyer demanded to have $1000 back on the same day when they return the keys, or they would sue me in court for illegally holding their money.

I feel they are being too unreasonable. Is holding their money for a maximum of 5 business days too long?

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Re: Maximum Days to Hold the Rent/Depost by Anonymous on June 6, 2012 @02:29	[ Reply ]

I'd just give them a check in exchange for their signing of a document which voids the lease and the keys of course. This is unless you think that there may be damage that they caused. The problem here is that they technically have possession and are trying to hold that over you. The lawyer thing sounds like a bluff.

Re: Maximum Days to Hold the Rent/Depost by NY-LL on June 6, 2012 @08:50	[ Reply ]

The landlord is entitled to retain the first months rent ($1000) and paid deposit ($1000) for the tenants' breach of the signed lease agreement. The tenant complaints about the wall needing to be repainted and the carpet needing to be re-cleaned are not substantial complaints to violate the signed lease agreement. What does the lease agreement state about early lease termination or damages due to unpaid rent? The landlord should be entitled to retain the security deposit due to the early lease termination and loss of rent until the premises can be re-rented to another qualified tenant. (Just because landlord agreed to "release tenants from lease agreement" does not mean tenants should not be penalized for the signed lease agreement violation. The landlord would prevail in small claims courts due to the frivolous lease violation.

Re: Maximum Days to Hold the Rent/Depost

Re: Maximum Days to Hold the Rent/Depost by Anonymous on June 6, 2012 @22:55	[ Reply ]

You have short sheeted yourself here with a quick reply of which you did not fully consider the ramifications of. You are loosing a lot of money, time and effort, on this deal just because they are being unreasonable. As the other posters have stated their claims are frivilious, and you would prevail in court. You can keep their money for breach of contract, and the fact they already have possession, until such time as you re-rent your place. At that point give them an SD reconciliation statement and deduct your dollar losses. Next time give them a form for a Non-Refundable Holding Fee (one months rent) to make it clear there is a dollar penalty if they decide to back out. Dont' give in so quickly to tenant demands. You might end up doing this during the term of the rental as well.

Re: Maximum Days to Hold the Rent/Depost

Re: Maximum Days to Hold the Rent/Depost by Eric (MN) on June 9, 2012 @08:05	[ Reply ]

5 days is not too long. In MN, you have 21 days to return the deposit. By bringing an attorney in, it would irritate me. I would hold on to the money and evict in a month if they do not pay instead. Or, clean and paint it in short order.