I had a house for rent and the future tenants gave me a small amount of the deposit I was requesting. Now after 3 weeks and many remodeling expenses, they decided not to move in and want the money they gave me back. Legally do I have to give it back?
2007-12-03 13:33:55 · 6 answers · asked by Rosanna M 1 in Business & Finance ➔ Renting & Real Estate
If they signed a lease or gave you the money to hold the place for them then you can keep the deposit as liquidated damages.
If the remodel work delayed their move-in though you should return the deposit to them. They probably could not wait and had to go elsewhere.
I'd suggest that you get a Depoist Agreement drawn up for the future, though. Spell it all out plainly that for 'X' dollars you will hold the place for 'Y' days. If they execute a lease, you'll credit it to the security deposit and first month's rent. If they don't sign a lease, they forfeit the deposit. This way you'll have no surprises either way and hard proof of the agreement should they decide to sue.
2007-12-03 13:47:34 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Better check with an attorney on this one. If you don't have anything in writing that says that their rental agreement was contingent on you remodeling the house....then they have every right to expect their deposit back.
If you have an attorney who handles your rental agreements, they should be able to tell you what the law would be in your state. If you do NOT have an attorney, it's a good idea to get one. If you're going to be doing much in the way of rental houses, you will want to be able to check on issues like these and many others as time goes on.
I hope that assists. Happy holidays!
Tony Rush
2007-12-03 13:38:11 · answer #2 · answered by Tony R 2 · 0⤊ 1⤋
I dont think so. Especially if they signed a rental agreement with you. If they did they would owe you a month or two rent on top of it. If you didnt have a agreement, have one for the next people who move in to cover all your bases.
2007-12-03 13:48:52 · answer #3 · answered by T I 6 · 0⤊ 0⤋
If they signed a lease or contract, then you are probably safe, in keeping it, unless they provided good reasons with legal backing to back out of the agreement.
Only you know. Just do the right thing, or the legal thing, whatever that is.
2007-12-03 13:42:58 · answer #4 · answered by me 2 · 1⤊ 0⤋
what was the deposit for? was it for damages? or last month rent? This isn't buying a home, you likely will have to give it back. They weren't the ones who damaged the house.
2007-12-03 13:43:01 · answer #5 · answered by freebird 3 · 0⤊ 2⤋
no it was being held for them because they had paid the deposit, it is there doing not to move in there for you do not have to give it back to them.
2007-12-03 13:38:52 · answer #6 · answered by jlw78418 2 · 1⤊ 0⤋