Can I keep the security if they break the lease?

[bongovi]

What is the name of your state? NJ

I had a tenant sign a lease from 1/12/08 through 7/31/08. After about 2 weeks, he informed me that his pet allergies were acting up. He purchased a HEPA air filter, after another 2 weeks he called and asked if I'd split the cost of vent cleaning. I agreed, I wanted him to be happy there. He said he spoke with the company & they told him any dander would be gone after the cleaning. Five days after the cleaning he emailed me outlining the deductions(for the vent cleaning) from the rent check that he was mailing out for March. I assumed everything was going well. On Feb. 29 he called me to tell me he issued a STOP Pymt on the March rent & that he was moving out! He moved out on March 9th. We have a new tenant coming in on the 15th.

Can I keep his security deposit? What course of action can I take against him? I live 600 miles from the rental property.

Thanks!

 

[acmb05]

What is the name of your state? NJ

I had a tenant sign a lease from 1/12/08 through 7/31/08. After about 2 weeks, he informed me that his pet allergies were acting up. He purchased a HEPA air filter, after another 2 weeks he called and asked if I'd split the cost of vent cleaning. I agreed, I wanted him to be happy there. He said he spoke with the company & they told him any dander would be gone after the cleaning. Five days after the cleaning he emailed me outlining the deductions(for the vent cleaning) from the rent check that he was mailing out for March. I assumed everything was going well. On Feb. 29 he called me to tell me he issued a STOP Pymt on the March rent & that he was moving out! He moved out on March 9th. We have a new tenant coming in on the 15th.

Can I keep his security deposit? What course of action can I take against him? I live 600 miles from the rental property.

Thanks!

What does it say in your lease about early termination?

 

[bongovi]

TERMINATION
After expiration of the leasing period, this agreement is automatically renewed from month to month, but may be terminated by either party giving to the other a 30-day written notice of intention to terminate. Where laws require "just cause", such just cause shall be so stated on said notice. The premises shall be considered vacated only after all areas including storage areas are clear of all Tenant belongings, and keys and other property furnished for Tenant use are returned to Landlords. Should the Tenant hold over beyond the termination date or fail to vacate all possessions on or before the termination date, Tenant shall be liable for additional rent and damages which may include damages due to Landlords loss of prospective new renters.

DEFAULT
If Tenant fails to fulfill or perform any obligation under this Agreement, Tenant shall be in default of this Lease. Tenant shall receive 30 days' notice by Landlords to cure the default (i.e. Non-payment of rent). In the event Tenant does not cure a default, Landlords may at Landlords option cure such default and the cost will be added to Tenant financial obligations under this lease, or declare Tenant in default of the Agreement. Landlords may re-enter the premises and re-take possession of the Condominium in the event of default. After default, Tenant may be held liable for the balance of the unpaid rent under this Agreement if Landlords cannot re-let the Condominium during the remaining term of this Agreement.

 

[acmb05]

What is the name of your state? NJ

I had a tenant sign a lease from 1/12/08 through 7/31/08. After about 2 weeks, he informed me that his pet allergies were acting up. He purchased a HEPA air filter, after another 2 weeks he called and asked if I'd split the cost of vent cleaning. I agreed, I wanted him to be happy there. He said he spoke with the company & they told him any dander would be gone after the cleaning. Five days after the cleaning he emailed me outlining the deductions(for the vent cleaning) from the rent check that he was mailing out for March. I assumed everything was going well. On Feb. 29 he called me to tell me he issued a STOP Pymt on the March rent & that he was moving out! He moved out on March 9th. We have a new tenant coming in on the 15th.

Can I keep his security deposit? What course of action can I take against him? I live 600 miles from the rental property.

Thanks!

No you can't keep all of the security deposit. Send them a letter outlining all of the costs involved and deduct that from the deposit and send them a check for the rest.

 

[bongovi]

So am I reading this correctly, he breaks his lease via a phone call & get all of his security back? He never paid for March, shouldn't I get the rent until the new T moves in? Can I take it from the security?

 

[acmb05]

So am I reading this correctly, he breaks his lease via a phone call & get all of his security back? He never paid for March, shouldn't I get the rent until the new T moves in? Can I take it from the security?

You get to prorate March rent because you have some one moving in already so you can't charge them both for rent for the same month. Take it out of the security deposit and refund the balance back to them. Minus of course any costs involved in finding a new tenant and/or damages to the unit.

 

[bongovi]

OK I get that I can't charge them both, but he can break the lease & walk away?

 

[fairisfair]

OK I get that I can't charge them both, but he can break the lease & walk away?

you have the right to recoup your losses. You have done what is called mitigating your losses.

You do not have the right to charge two parties for the same rental property.

 

[MIRAKALES]

Can I keep his security deposit? What course of action can I take against him? I live 600 miles from the rental property.

In the State of New Jersey, LL is obligated to issue a security deposit settlement within thirty (30) days to the tenant’s forwarding address. (Send to leased address for forwarding if tenant did not provide valid forwarding information.) On or before April 8, 2008, the security deposit settlement should be issued via certified mailed to tenant. Outlining, in detail, any and all lawful deductions for damages, repairs, and unpaid rent.

The Double Dip Rule is applicable in this case because LL has mitigated damages by acquiring new tenant. Former tenant is responsible for unpaid rent (March 1-14), property damages, property repairs, missing items, and re-advertising costs. (LL should make sure to inspect the rental thoroughly.) The LL payment deduction for the vent cleaning is null and void because it was agreed to on the condition that tenant would lease premises until July 31, 2008. In addition to the unpaid rent, damages, repairs, missing items, and re-advertising, LL should deduct the vent cleaning from tenant’s security deposit (it’s lawful) and the bounced check fees too!
(Travel expenses to inspect the property may also be allowed.)

 

[bongovi]

Thanks for the info. I still can't believe that he can just walk away. He paid for the vent cleaning in full.

 

[fairisfair]

Thanks for the info. I still can't believe that he can just walk away. He paid for the vent cleaning in full.

so you got some clean vents out of it. And a new tenant.

Not such a bad deal

 

[bongovi]

Should I outline something in the new lease to protect myself better with the new tenant?

 

[bongovi]

Can I put in the new lease that there needs to be 60 days written notice to cancel the lease?

 

[bongovi]

I have 2 more questions:

1) Does the security have to reach him withing the 30 days or be post marked?

2) Can I deduct the gas/electric bill (after he left until new tenant arrived) from his security deposit?

I just got it & it's $90...since he left, shouldn't he pay?

Thanks!

 

[MIRAKALES]

The Security Deposit Settlement Statement should be mailed and postmarked via certified mail within thirty (30) days after move-out. Tenant moved out of March 9, 2008. USPS postmarked should be dated on or before April 8, 2008. The settlement statement should outline, in detail, any and all lawful deductions for damages, repairs, and unpaid rent. The tenant’s unpaid utility bills can be deducted from the security deposit (provided LL pays the utilities on behalf of tenant). Unpaid bills would be classified as damages, so are re-advertising costs and other miscellaneous expenses associated with the early lease termination.

To address prior questions about landlord protections, LL may want to consider joining a national or local Landlord Protection Association. Yes, the new annual lease (or any lease with a term) can and should contain the language for tenant to provide sixty (60) days written notice prior to lease expiration, if that is what LL requires.