Early termination of lease - Return of Security Deposit : ezLandlordForms

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Early termination of lease - Return of Security Deposit

Michelle P

started a topic over 13 years ago

I have tenants that have terminated 8 months early from a two year (per their insistence for 2 yrs) in Texas. The lease was the standard 14 page TX State Rental Lease form. Their company has offered and I have accepted a simple buy out since their termination was due to the Husband's company transferring him. My question is - am I legally required to return their 1 month security deposit? I am confused as to what the lease states (I think I can w/hold it per the lease) and what the TX state residental lease laws state. It would not be double dipping since it technically is a buy out and I have yet to rent the home out. Does anyone know the answer, so that I do not break Texas law if I withhold? The house was very well kept, and most likely there will be no damage issues to justify holding back any of the deposit.

1 Comment

Renee R

said over 13 years ago

In most states, the landlord can only withhold the security deposit for "actual damages" or financial damage caused by the tenants' actions. So for example, if you the landlord line up a tenant to move in right away, and don't have any lost rent, then you would not be able to withhold the deposit for lost rent. If it takes 3 months to find a replacement tenant, then you have a case for keeping the security deposit. Depending on the buyout agreement you have it may not be ethical to ALSO keep the security deposit.