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Using security deposit for rent. Tenants option, not the landlord.

A tenant is vacating and refused to pay the last months rent, intending to use the security deposit.  There are obvious damages as well as the breach of contract to begin with however in searching the NH laws, found nothing about this.  I think this must be a common problem.  Note that once a security deposit is "used" there is no security!


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2 helpful answers

Did you have a written lease agreement?  I own property in Wilmington and the lease plainly states that the last months rent is NOT the security deposit.  I expect and receive the final rent payment, THEN do a walk thru after cleaning, inspection, etc to determine if the tenant gets all or part of security deposit back.   In the beginning I run a credit check on the people I rent to---and only rent to qualified tenants with a job (that I verify) and I call the previous landlord for a reference.  The easiest question to ask them is "Would you rent to these people again?" Typically this type of person wants to keep their credit clean and will abide by the rules... My leverage is that I will report them to all 3 credit bureaus and it will impact their credit score if they breach the contract and leave owing money via damages, etc...

Maybe small claims court is the way to go for you if there is no written agreement?  If you had a verbal agreement where you told the person the rules then you may have a chance at getting your money for damages.  Most landlords that I know of NEVER let a tenant use the deposit as the last months rent.  The next time you rent a place you can even handwrite the sentence " The security deposit shall not be used as last months rent." on the lease agreement if it is not printed in the wording already.  I have found that doing all the paperwork and thoroughly checking out the tenant before you rent saves a lot of agony--and money after they leave.  Take photos or a video of the interior as you walk thru the empty apt/house with the new tenant...then it is easy to have proof of any damage, etc when that tenant leaves.

Hope this helps.

 

 

Posted 2009-09-12T18:39:43Z
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