Tenant breaks lease before moving in.

[Katbarb]

What is the name of your state? Florida
Two days ago I had a tenant sign a annual lease for my townhouse. Lease term begins Sept. 1st, so she has not moved in yet. Today, she sent me a text stating that she’s decided not to move. She paid a partial deposit and was supposed to wire the rest of the money today. I have turned ppl away and lost an interested party bc we have a lease signed. What are my options? And do I need to refund her small deposit?

 

[Just Blue]

What is the name of your state? Florida
Two days ago I had a tenant sign a annual lease for my townhouse. Lease term begins Sept. 1st, so she has not moved in yet. Today, she sent me a text stating that she’s decided not to move. She paid a partial deposit and was supposed to wire the rest of the money today. I have turned ppl away and lost an interested party bc we have a lease signed. What are my options? And do I need to refund her small deposit?

What type of deposit was it? Security Deposit?

 

[Katbarb]

What type of deposit was it? Security Deposit?

It was just a deposit to hold it and sign lease. I said I’d apply it to first months rent.. I also put in the lease an early termination clause which would mean to break early, tenant agrees to pay two months rent.

 

[adjusterjack]

What are my options? And do I need to refund her small deposit?

Florida requires you to mitigate your damages for breach of contract. That means you must make reasonable efforts to re-rent the place as soon as reasonably possible at the same or similar terms as you had with the breaching party.

If you manage to re-rent effective 9/1 then you can apply the deposit to any additional expenses (like if you had to pay to re-advertise) and refund the rest.

If you cannot re-rent before 9/1 because of market factors beyond your control you can apply the deposit to the period from 9/1 until the date of the re-rent and refund the rest. If the deposit doesn't cover the period between 9/1 to the date of re-rent she will be responsible for any further unrented period provided you can prove reasonable efforts at mitigation.

The statute is 83.595:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.595.html

 

[LdiJ]

While AJ is 100% correct, I can tell you right now that you are never going to see another penny from her. So, I would work on re-renting the unit as hard as you can.

 

[Katbarb]

Florida requires you to mitigate your damages for breach of contract. That means you must make reasonable efforts to re-rent the place as soon as reasonably possible at the same or similar terms as you had with the breaching party.

If you manage to re-rent effective 9/1 then you can apply the deposit to any additional expenses (like if you had to pay to re-advertise) and refund the rest.

If you cannot re-rent before 9/1 because of market factors beyond your control you can apply the deposit to the period from 9/1 until the date of the re-rent and refund the rest. If the deposit doesn't cover the period between 9/1 to the date of re-rent she will be responsible for any further unrented period provided you can prove reasonable efforts at mitigation.

The statute is 83.595:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.595.html

Thank you very much! I really don’t expect any more from her and wouldn’t spend the time trying. I just didn’t want to keep her small deposit, (1/4 of one months rent) if I wasn’t legally allowed. This is fair and helpful. Thanks again!

 

[izzie02]

I would also send a written letter (not email or text) explaining why you are holding onto deposit and send certified.

 

[LdiJ]

Thank you very much! I really don’t expect any more from her and wouldn’t spend the time trying. I just didn’t want to keep her small deposit, (1/4 of one months rent) if I wasn’t legally allowed. This is fair and helpful. Thanks again!

Again, if you are able to re-rent for September 1st without any additional cost you must refund even that small deposit, or the difference between that small deposit and any provable, additional cost you incur.

Its only August 5th. You have a better than decent chance of re-renting before September 1st.