Re: Withholding Security Deposit for early Termination

Re: Withholding Security Deposit for early Termination by Anonymous on February 1, 2018 @07:47

Mishandling of security deposits is a mistake frequently made by landlords that can land them in hot water.

The nature of a security deposit and what deductions can be made from said deposit are determined by your state law. Nothing in your lease determines how a security deposit can be used. Nothing the tenant says determines how a security deposit can be used.

Does your lease include any kind of reasonable early termination fee? A court will expect you to re-rent the unit as soon as possible. 11 months is not reasonable.

If a tenant is going to leave, they're going to leave. Your goal as a businessperson needs to be protecting your business and your livelihood. This means -

- Handle the security deposit in accordance with state law.
- Focus on getting the unit re-rented.

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Re: Withholding Security Deposit for early Termination by mdk0420 on February 1, 2018 @13:00	[ Reply ]

Yes it has an accelerated clause if the contract is breach. This means that the whole lease becomes due immediately, like a mortgage would in breach of contract. Similar to an early termination fee but it is a fee based on how many months are left. She has until October until the lease ends. and she is moving out in March. So she'll have 7 months of unpaid rent left when it accelerates. I figured the court will no expect her to be liable for all 7 months, as taking 7 months to rent a place means there are some serious issues. What is more reasonable? Simply 1 month? Maybe 2? I do understand that things happen in life and if she has to leave, so be it. But it is very frustrating that my lease is being broken early. And if no consequences then what is the point of a lease besides binding yourself in it, and not the tenant?

Re: Withholding Security Deposit for early Termination - Landlord Forum thread 355954