early lease termination/security deposit - Landlord Forum thread 324965

early lease termination/security deposit by J. (Michigan) on September 26, 2014 @09:45

We have a tenant who moved in for a few days, then made up some story about there being fleas in the house and now she wants to terminate her lease. We told her that she can move out, but we are keeping her security deposit. Her attorney has contacted us stating that they are going to fight for the security deposit back based on the fact that we misrepresented the property. It clearly states in the lease that early termination results in losing the deposit.

Do they have any legal recourse for getting the deposit back?

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Re: early lease termination/security deposit by Katiekate (New York) on September 26, 2014 @10:12	[ Reply ]

Geez, I wish I had a dollar for every "lawyer" who called me to threaten me with a lawsuit. Good grief. I would put it in writing. Breaking the lease because the tenant brought fleas into the unit is not acceptable, Any court would give you 2 months of rent. As for the SD...do not make an agreement to let her out based on keeping the SD....you just cannot know who much damage she will do going out the door. In one Sect 8 housing project I managed, the popular trick was to demand the landlord pay for the moving expenses...those which refused found bleach poured onto their carpets and the sinks closed with water running flooding everything. Not saying this tenant will deliberately damage the unit..but..you do not know how much of the SD you will need till she is gone. As for the phone call. Ignore it. If it is a real lawyer you will get a letter on official letterhead. (I doubt you ever will)

Re: early lease termination/security deposit

Re: early lease termination/security deposit by Anonymous on September 26, 2014 @13:00	[ Reply ]

landlords need to give all their money back to their tenants, including all rents they received before. there are many cases of tenants are suing their landlord for big $$$$ over the bed bugs now. currently more and more landlords are filing bankruptcies over the bed bugs. every landlord should get ready to file bankruptcy next. time to get out of the landlording business is right now.....

Re: early lease termination/security deposit

Re: early lease termination/security deposit by MrDan (Georgia) on September 27, 2014 @08:45	[ Reply ]

Do they have any legal recourse for getting the deposit back? Possible, the use of security deposits is governed by Michigan P.A. 348, 1972. Your lease cannot waive any of your tenants’ rights under the Security Deposit Act. 'A security deposit has a specific purpose: to reimburse the landlord for damage to the rental unit, unpaid rent, or unpaid utility bills left by the tenant'. The Truth in Renting Act prohibits lease clauses that waive a tenant's legal rights. The act also requires that all leases include the landlord's or manager's name and address, and a notice about the Truth in Renting Act. Security deposits are the property of the tenant until the landlord establishes a valid claim to the money through judicial action or through a mutual agreement with the tenant. If there is a dispute over this money, the landlord must go to court to establish a claim to the disputed portion of the security deposit. Both the landlord and tenant can mutually agree to terminate the rental agreement. It appears that you did so and tenant accepted "We told her that she can move out". Michigan law can allow the tenant to receive double the security deposit for unlawful retention by landlord. "we misrepresented the property" seems to be another can of worms. How was the property misrepresented? You might need to contact an attorney, if the tenants' attorney feels he has grounds to pursue this in court. It could cost you more than a security deposit.

Re: early lease termination/security deposit