Do I have to return security deposit after eviction?

[redman24]

What is the name of your state? TN

I got an eviction for my tenant with a judgement for past due rent of about $4000.

Typically the $1000 security deposit would be returned within 30 days, but can't I keep the $1000 deposit to apply it to the past due rent, since it is difficult or unlikely that I'll retrieve that past due rent by using the judgement to find and garnish his money?

 

[Taxing Matters]

What is the name of your state? TN

I got an eviction for my tenant with a judgement for past due rent of about $4000.

Typically the $1000 security deposit would be returned within 30 days, but can't I keep the $1000 deposit to apply it to the past due rent, since it is difficult or unlikely that I'll retrieve that past due rent by using the judgement to find and garnish his money?

It appears that you can indeed offset the unpaid rent by using the security deposit. Tennessee law on security deposits says the following:

(e) Should a tenant vacate the premises with unpaid rent or other amounts due and owing, the landlord may remove the deposit from the account and apply the moneys to the unpaid debt.​

Tenn. Code § 66-28-301(e).

 

[Gail in Georgia]

Its best to send notification to the evicted tenant regarding the status of their security deposit within the required time period for your state. If they have not provided you with their new address send it to the last known address (your rental property), collect the unopened letter and store it in your files should the tenant come back later attempting to sue you for their deposit (don't laugh; it's been tried before).

It's also a good idea to remain as professional as possible in explaining what the security deposit will be used for. While it's tempting to state "There's no way in he.. you're getting this money back buddy" that statement should probably be avoided.

Gail

 

[reenzz]

Yes you can, just make sure you send them a letter at thei last known address stating that their deposit was applied to unpaid rent. Do this within 30 days. I also belive that Tennessee law requires you to send it certified, return receipt requested.

 

[FarmerJ]

If you send via certified mail even if its to the only address you might have which could be the one the tenant rented from you. If the tenant did not put in a forwarding address then what will happen is post office will try to deliver and in the end if the tenant did not pick up the mail it will be returned to you marked accordingly so you want to clip it to your original postal receipt and save it UN opened / sealed so that way should the tenant attempt to sue you your able to show a court that not only did you try to follow the law by sending a final disposition of deposit funds in accordance to your states laws BUT a judge can see that the letter was not picked up and have her or his bailiff hand it to the former tenant and who knows , the judge might want to know why the former tenant didnt put in mail forwarding or why they refused to pick up their mail , the judge might not care and simply let the tenant look like a fool when they dismiss the claim. since the claim would have been that LL failed to follow the law , no matter what , doing the final disposition in a way that creates a paper trail is a cheap way to reduce the odds of a former tenant winning a small claims case regarding deposit funds.

 

[STEPHAN]

redman24, if you are a landlord and you do not have answers to these simple questions, you should consider hiring a property manager. There are many laws you as a landlord need to follow and you might be up for serious trouble.


PS: This is the advice I was given when I asked the same question here 10 years ago. I took that advice to heart and I am now a licensed real estate professional. I really don't work in that profession, but it has helped me on my expanding rental business in so many ways. I sounded harsh, but it was the right action. I was seriously in danger:

You really should not be acting as a landlord until you learn the law OR hire a property manager to deal with all aspects of your rental property.

I would have studied the law backwards and forwards, perhaps paid for an hour or 2 with a lawyer to go over important points and help construct a good lease, BEFORE I actually took any rent money from anyone. As a person who rented for many years, landlords who don't know the law really bug me. Being a landlord comes with obligations as well as paychecks. And besides doing a disservice to your tenants by not knowing what your obligations are, you also put your financial health at serious risk. Break the law with the wrong tenant and they will sue the pants off of you - and win!

I am sure some seniors here will still remember. Gail in Georgia for example helped me, too.