What Happens To The Deposit When A Tenant Breaks A Lease?
When a renter violates the lease agreement he may still owe a fraction of rent to his landlord and may be accountable for the damages spotted in the property. When a lessee goes against the lease agreement, his right to his security deposits also change. Moreover, depending on how much money is to be paid on a lease a tenant may not be able to get back his deposits.
Significance Of A Security Deposit
In essence, a deposit shields both the landlord and the tenant in a rental agreement. Practically, the landlord is protected since the security deposit assures him that there is a fund that he can use for repairing any possible damages that may occur to the rental property as the tenant moves out. Similarly, the tenant is confined the deposit as it keeps him from getting a repair bill at the time he moves out of the rental property. Most lease documents also include what will happen to the deposit in case the tenant violates the lease agreement.
Typically, when a tenant goes against the rental agreement and moves out of the property, the property owner may use the renter’s deposit to pay for any unpaid rent on the lease. In this case, the tenant loses his right to get back the money in the rental deposit and all laws with respect to a landlord’s obligation to return the security deposit no longer apply. In addition, the tenant may face up to a civil lawsuit from the property owner if the amount of money in the security deposit is inadequate to pay for all the unpaid rent.
Damage to the Property
When a tenant breaks the lease the landlord may utilize a security deposit to do repairs to the damages made by the tenant on the property that are outside of normal wear and tear. An example of damage outside wear and tear usually includes intentional damage to appliances, cracked windows or damaged door locks. Landlords do not have the right to use the rental deposit to spend on normal wear and tear repairs and property improvements such as carpet cleaning even if the occupant defaults on the rental agreement.
Default Before Possession
In some cases, when a renter pas his landlord a security deposit for the rental property, but do not take the possession of the property, the tenant may not be allowed to refund the deposit. This is done to prevent a tenant from getting into a lease agreement that he may not fulfill. The security deposit is used to compensate the landlord for the inconvenience of listing his property to rent again.