Security Deposit
I have a situation where a tenant is asking for his security deposit. Not only did I have to hire someone to clean the place and carpets...etc., but he had two pets ( lease prohibited pets) and never provided a pet deposit. The reason I didnt know is I live out of state and only found out when he was moving. I was wondering can I legally charge him a pet deposit and deduct it from the security deposit after the fact? That was not the only lease violation - he also moved his girlfriend in with her daughter and the lease clearly stated he could not have additional people living there beside himself and his daughter. I believe i can keep the security deposit anyway since he was suppose to give me 45 days notice and only gave me 2 weeks. I was just wanting to get some input - its a bit of a dilemma for me and I sometimes wonder just because I could - does it mean I should? I am rather new to this.
I agree with Chris on this - carpet is open if dogs damaged it.
Did you provide a Landlord-Tenant Checklist upon move-in? If not, you must return the deposit in full...and in some states, if it gets to court, you will also be penalized up to three times that amount in non-contestable punitive damages.
[addsig]
pstable, In this case, seems like you are justified holding the deposit or keeping it if you cant find a rentor real quick. I believe you about the dogs.
With you having all of these out of town costs due to the quick move out notice. I think you are justified to sit on his deposit, I wouldnt give it back quick.
Use it clean the carpet and prep the place for a new renter. Tell him it will be 45 days before you return it with verified reciepts for any damages. Its good to be nice, but seems like the quick notice is costing you more than you are comfortable with. Especially with him being in the place so long, he should have known better or at least been more responsible with this planning.
Everyone - thanks for the feedback. I decided to keep the deposit after having given it much thought.
I sent the tenant an email letting him know the issues I found and also sent him a registered letter (return receipt ) with an itemized list of deductions and also communicated to him he will not be getting any part of the deposit back. I have 14 days (in AZ) excluding holidays and weekends to respond regarding the security deposit. I will be complying with state law.
I know some may not agree with my doing this, but I just couldnt let this go. The tenant did not trash the place, but did cause excessive wear and tear due to the pets he was not suppose to have, and caused me to incur additional costs due to inadequate notice - among some other minor things he broke. I dont feel he should be able to get away with it - just because he didnt "trash" the place - just my viewpoint ( I was taught respecting other peoples property is what you are SUPPOSED to do, and when I rented I treated the place like it was my own). Had the shoe been on the other foot, and I gave him no notice or insufficient time to find another place, I would have possibly been sued. Again, thanks for the pointers and feedback. I will probably look into obtaining that landlord book. Sounds like it would probably come in handy.
Let us know how you come out on this. I am in Tulsa also, just curious how small claims work.
WOW! great news, congrats.
Good find Monk. I wonder where they get their comps from? The rents they listed seem like they are correct in my area.
Good Site. The problem with it is that they are not doing apple to apple comps, so they come back with a huge spread for the average. For example they are comparing Detroit, MI rents to some of its surburb. In Detroit rent vary widely, a lot of people are on fixed income so some landlords like me bring our rents to a value that these fixed income renters can afford. Of course, properties are a bit cheaper too, so you can still play the numbers game and make some profits.
Noa
Accurate for Richmond, VA. At least for my units that I checked. Impressed by the map and addresses of the comps.
Jim
By zooming in on the map using the tool on the left side at some point the names of all the streets will appear on the map.
Jim
Good find, fun to look at. This tool could be used by renters as well as landlords.
cycledog
Most say housing costs should be about a third of income for younger folks, and half for older folks who know how to be careful with money. Prospective tenant has steady income more than three times the rent; should meet your criteria- in most states it is illegal to discriminate against someone because of disabilities.
What is the disability? Not from renters, but through life I have found that people who get on disability for non physical reasons tend to have a "user", entitlement mentality that everything should be handed to them on a platter. There are all kinds of potential problems with this type of person.
Chris
Chris
As I read somewhere...."If you are not embarassed by your first offer, you offered too much."
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Either my calculations are off or I should walk away from this. I assumed, for calculation, 5% repair reserve, is this reasonable? What is reasonable cash flow?
Many thanks for the input.
Chris,
How common are those deals? I mean I hear that people do it from time to time, but just about anything I see on the market right now here in NC would not cash flow at 100% financing. Are these wholesale deals? foreclosures? REO properties? all of the above? I am just curious. The best I ever did was break even with 5% down.
Chris
If you are buying that many properties and keeping them as rentals how do you finance them? After a few on your name the lenders are not very eager to loan you.
thanks