Non Refundable Deposit

[chizzledfrmston]

What is the name of your state (only U.S. law)? Arizona

I have a tenant who's moving out after 8 months of her 2 year lease.

The lease she signed has a Refundable deposit of $1,200 and Non-Refundable $850. The non-refundable was for cleaning the place up after the tenant leaves. She did a poor job of cleaning the place and is requesting the whole amount back.

I can give her the $1,200 back but am I required to give back the $800?

Thank you

[Banned_Princess]

What is the name of your state (only U.S. law)? Arizona

I have a tenant who's moving out after 8 months of her 2 year lease.

The lease she signed has a Refundable deposit of $1,200 and Non-Refundable $850. The non-refundable was for cleaning the place up after the tenant leaves. She did a poor job of cleaning the place and is requesting the whole amount back.

I can give her the $1,200 back but am I required to give back the $800?

Thank you

You do not have to give her any "non refundable deposit", because its non refundable.

And if you didn't let her out of the lease, you don't need to return any of the refundable security either.

And you can continue to charge her rent while you are trying to get the place re rented.

[Gail in Georgia]

Information on the Arizona Landlord Tenant Act. The first part specifically addresses "non-refundable" deposits:

[url=http://legal.asua.arizona.edu/SEC_DPST.html]Untitled Document[/url]

The information on "non-refundable" deposits must be in writing; sounds like this information was included in the lease the tenant signed.

Like Banned_Princess, I too am curious as to why you believe you should return the $1200 security deposit. Did you agree to allow this tenant to break their lease early?

Gail

[chizzledfrmston]

Information on the Arizona Landlord Tenant Act. The first part specifically addresses "non-refundable" deposits:

[url=http://legal.asua.arizona.edu/SEC_DPST.html]Untitled Document[/url]

The information on "non-refundable" deposits must be in writing; sounds like this information was included in the lease the tenant signed.

Like Banned_Princess, I too am curious as to why you believe you should return the $1200 security deposit. Did you agree to allow this tenant to break their lease early?

Gail

Yes. I wasn't interested in creating a big deal about it. I told her if she found me a new tenant I would break the lease and return the security deposit.

Should I not have done that?

[Gail in Georgia]

If your tenant (or you) find a tenant to replace her (and no rent is lost in this process), the security deposit should be returned to her. The non-refundable deposit would be used to cover damages and cleaning issues.

However, if the tenant leaves damages that exceed this $850, additional funds to repair these damages can be taken out of the security deposit.

It is important to document damages (i.e., pictures, receipts) should your tenant disagree with the amount kept and decides to file a lawsuit against you for this. Your documentation would then be evidence to prove to the court that the amount you retained from the security deposit was justified.

I hope this makes sense...

Gail

[Banned_Princess]

Yes. I wasn't interested in creating a big deal about it. I told her if she found me a new tenant I would break the lease and return the security deposit.

Should I not have done that?

Exactly. You already allowed her to break the lease, so... the non, non- refundable deposit should be returned, barring any significant damage to the rental. ( anything not covered under the non refundable cleaning fee. )

You stated she already left, did you have a new tenant for the next month?

[Who's Liable?]

Yes. I wasn't interested in creating a big deal about it. I told her if she found me a new tenant I would break the lease and return the security deposit.

Should I not have done that?

You cannot sit and not search for a tenant. You must try to find a replacement yourself and provide proof, if needed, should she sue you.

[chizzledfrmston]

If your tenant (or you) find a tenant to replace her (and no rent is lost in this process), the security deposit should be returned to her. The non-refundable deposit would be used to cover damages and cleaning issues.

However, if the tenant leaves damages that exceed this $850, additional funds to repair these damages can be taken out of the security deposit.

It is important to document damages (i.e., pictures, receipts) should your tenant disagree with the amount kept and decides to file a lawsuit against you for this. Your documentation would then be evidence to prove to the court that the amount you retained from the security deposit was justified.

I hope this makes sense...

Gail

You cannot sit and not search for a tenant. You must try to find a replacement yourself and provide proof, if needed, should she sue you.

I should have mentioned she found me a new tenant which is why I allowed her out of her lease. New tenant moved in a found tons of flaws I had missed.

Another problem I'm having is the tracking # for the certified mail containing the check hasn't updated and its been a 4+ days.