Security Deposit For Rent

Comments(4)

• 
  dstudeba29th July, 2004

  I would avoid doing this. Now you are out a security deposit and what happens the next time he can't pay rent?
  
  Look at your lease, mine say that I can recover unpaid rent from the security deposit, but I do this at the end. If they can't pay the rent it might be time threaten eviction.
  
  However if you do decide to use the security deposit, provide plenty of documentation signed by both you and the tenant that this is what was done. Otherwise, when the lease is up he might sue you for not returning the security deposit. :-o

• 
  Bob230th July, 2004

  Giving up the security deposit before the tenant has vacated forfeits your last financial leverage. I wouldn't recommend it.

• 
  3qu1ty2nd August, 2004

  This probably depends on your relationship with the tenant and how well you know him/her but given that I would say absolutely do not use the security deposit for the rent. It's original purpose is to cover damages etc. I would keep it this way to avoid confusion and to keep the tenant in line with respect to the lease that was signed. Depending on what your Iease says the tenant here could be in violation and you should inform him that the rent needs to be paid or they need to find another place to live. Of course you have the whole eviction process but you if it does come to this you might try making the situation less adversarial by providing some options for your tenant like lower priced places that you see in the paper. Maybe a direct deposit for rent payments will help with situation in the future.

• 
  myfrogger2nd August, 2004

  Is it legal to do this---YES
  Is it wise---NO
  
  Why isn't it wise?
  
  Well a security deposit, by nature, is used to cover damages to your property. If you use this to cover the rent, what will you do if the place is left as a disaster?
  
  I would either work something out with the tenant to pay you later with late fees or move to evict.
  
  GOOD LUCK