Start your membership account today...  Access to credit reports, 100's of rental specific forms, agreements, letters, checklists, how-to articles, guides, expert advice and much more!  Even a FREE, 3-day trial!

Not a Member?
Get a Free Trial Membership

  Get FREE Stuff! Run Credit Report Rental Forms  Shop & Buy Forms!  Advertise Your Rental Customer Care

Welcome to Landlord.com's Discussion Forum
Sign up Latest Topics
 
 
 


Reply
  Author   Comment  
Az460

Registered:
Posts: 9
Reply with quote  #1 
I rented an apartment to a young couple April 1 of this year 1 year lease agreement. I got a text 1 week ago telling me they needed to break the lease. They could no longer afford the rent. They wanted to leave by Sept. 1st. I offered to lower the rent through the end of their lease. They are staying. Since they did in essence break the lease by not paying the agreed upon amount the lease states, do I keep their security deposit? I will still be at a 600.00 loss of income even if I keep it. I opted to lower the rent because the thought of having to re-rent the place after such a short time was daunting.
LLinVA

Registered:
Posts: 550
Reply with quote  #2 
You offered to lower the rent, they didn't even ask. It may vary based on state, but I don't think a judge is going to side with you if you keep the security deposit.

That said, if you were to keep it and tell the tenants why, the tenants may not challenge it in court, in which case it wouldn't matter what a judge says. It's probably worth holding it, but be willing to give it back (minus other deductions) if they actually start the process of going to court over it.

This assumes there isn't good reason to keep the security deposit anyway, which in the case of people who can't pay the rent isn't likely.
Az460

Registered:
Posts: 9
Reply with quote  #3 
Thank you, I will take your advice. I will tell them about their security deposit. If they argue it, I will give it back.
AccidentalRental

Registered:
Posts: 208
Reply with quote  #4 
Some states don't allow you to use SD for back rent.  I'd be careful with this approach.  That and the fact that it looks like you negotiated in bad faith.  I'd be pretty upset with you if I was the judge.
__________________
AccidentalRental - Helping Homeowners Become Landlords

Az460

Registered:
Posts: 9
Reply with quote  #5 
The tenants are moving out. I gave them a reduction and they asked for more which I cannot afford to do. They are breaking their lease 8 months early.
AccidentalRental

Registered:
Posts: 208
Reply with quote  #6 
You made an agreement with them to stay through the lease at a different rate and now you want to change the terms.  If you had said OK to the reduction but you will keep the SD that would be different.  You also need to look at the local laws regarding Security Deposits.  Some places don't allow you to keep it for rent.  Did you get anything in writing?
__________________
AccidentalRental - Helping Homeowners Become Landlords

Az460

Registered:
Posts: 9
Reply with quote  #7 
I made a an agreement for a 300.00 reduction until their lease ends. Yesterday they wanted it reduced by 500.00 after we had agreed to 300.00. I can't afford the additional 200.00 reduction! In essence they broke our original (lease) contract, then a secondary verbal contract. I simply told them I could not do 500.00 less. I didn't change the terms, they did twice.
Az460

Registered:
Posts: 9
Reply with quote  #8 
The lease states they waive there security deposit if they break the lease.
AccidentalRental

Registered:
Posts: 208
Reply with quote  #9 
I think you want to hear that it's ok to use their SD to pay back rent.  I'm just telling you to make sure it's not illegal in your jurisdiction.  Doesn't matter what's in the lease.  It's void if it's illegal.

I think you are better off writing an addendum with the new terms and holding them to that.  Evict if they don't abide by the new terms.  Withhold their SD if it's legal.

__________________
AccidentalRental - Helping Homeowners Become Landlords

Az460

Registered:
Posts: 9
Reply with quote  #10 
Thank you for the advice, I will make sure I deal with it legally.
LLinVA

Registered:
Posts: 550
Reply with quote  #11 
In re-reading this, I agree, you agreed to a lower rent, that outweighs the original lease because YOU AGREED TO IT. Them asking for an even larger decrease doesn't hold up and if they don't pay the new amount ($300 reduction) THEN they will be in violation. But they aren't in violation of the original lease because YOU AGREED TO THE CHANGE. They are in violation of the lease if they decide to not pay the new amount that is reduced by $300. 
Previous Topic | Next Topic
Print
Reply

Quick Navigation:

Easily create a Forum Website with Website Toolbox.

Apartment Finders > > Member Log-in > Free Trial Offer > Free E-newsletter > Customer Service > Get Free Stuff! > Run Credit Report > Rental Forms > Vacancy Center > Do-it-yourself > Evicting Your Tenant > Foreclosure Resources > Landlord Discussion Board > Income Tax Resources > Information Center > Join Landlord.com > Landlord Law > Library > Multi-family > Professional Advice > Rental & Property Mgmt > Rent Collection > Repair & Maintenance > Security Deposit > Software Center > Tenant Screening > Vacation Homes > What's New > Rental Agreements > Free Leases > Inside Our E-store > > Security Deposits > > Landlord Daily News > Rental Agreements >
LandscapingSanJose.net Resources: Cleaner Sunshine coast