Generally yes. If the evicted tenant owes back rent, you may deduct the unpaid rent from the security deposit. You may not deduct for rent that has not been earned.
For example, the tenant has not paid the monthly rent (due on the first) and is evicted on the 15th. You may deduct unpaid rent prorated to the eviction date, but not for the entire month.
Dave, doesn't that depend on the lease/rental agreement? For example, if a tenant is evicted due to non payment, and it takes me a full month to find a new tenant, wouldn't I be able to apply the sec deposit to cover the expenses caused by the tenant on the basis of him breaking the lease? Landlord/tenant laws vary a great amount from state to state, but where I live, I'd definately give it a try if the situation arose. Z
The problem with your argument is that the tenant did not break the lease -- you evicted him.
When you evict the tenant, you terminate the lease and no longer have any lease terms concerning loss mitigation to enforce. If you evict the tenant for non-payment, then apply the security deposit to the unpaid rent you are owed. Unless you collect more than one month's rent as a security deposit, most likely there won't be anything left anyway.
Just a quick word on withholding deposits...be very careful, unless you are 100% sure. In many areas, the penalty for unlawfully withholding deposits is TRIPLE damages.
But, Dave, he DID break the lease because he didn't PAY me! My lease states that the tenant has to pay me, and if he doesn't, I consider that breaking the lease! I agree we must be careful with deposit money and not just keep it without a valid reason, but I think that by not paying, the terms of the lease have already been violated, no? Zach
The tenant is in default for failure to pay rent. While the tenant still occupies the property, he has not "broken" the lease. In the normal context of the term, we use "break the lease" as meaning to prematurely terminate the lease and vacate the property.
Even if the tenant is current on the rent, but just moves out in the middle of the night without giving proper, prior notice, we say the tenant has broken the lease. The property is now free to rent to someone else.
Generally yes. If the evicted tenant owes back rent, you may deduct the unpaid rent from the security deposit. You may not deduct for rent that has not been earned.
For example, the tenant has not paid the monthly rent (due on the first) and is evicted on the 15th. You may deduct unpaid rent prorated to the eviction date, but not for the entire month.
Thank you.
Dave, doesn't that depend on the lease/rental agreement? For example, if a tenant is evicted due to non payment, and it takes me a full month to find a new tenant, wouldn't I be able to apply the sec deposit to cover the expenses caused by the tenant on the basis of him breaking the lease? Landlord/tenant laws vary a great amount from state to state, but where I live, I'd definately give it a try if the situation arose. Z
Zach,
The problem with your argument is that the tenant did not break the lease -- you evicted him.
When you evict the tenant, you terminate the lease and no longer have any lease terms concerning loss mitigation to enforce. If you evict the tenant for non-payment, then apply the security deposit to the unpaid rent you are owed. Unless you collect more than one month's rent as a security deposit, most likely there won't be anything left anyway.
Hey,
Just a quick word on withholding deposits...be very careful, unless you are 100% sure. In many areas, the penalty for unlawfully withholding deposits is TRIPLE damages.
But, Dave, he DID break the lease because he didn't PAY me! My lease states that the tenant has to pay me, and if he doesn't, I consider that breaking the lease! I agree we must be careful with deposit money and not just keep it without a valid reason, but I think that by not paying, the terms of the lease have already been violated, no? Zach
The tenant is in default for failure to pay rent. While the tenant still occupies the property, he has not "broken" the lease. In the normal context of the term, we use "break the lease" as meaning to prematurely terminate the lease and vacate the property.
Even if the tenant is current on the rent, but just moves out in the middle of the night without giving proper, prior notice, we say the tenant has broken the lease. The property is now free to rent to someone else.
Ok, I submit. I agree that you are correct. Z