Start a new topic

Tenant paid deposit & signed lease gave 4 day notice that he doesn't want apt.

We signed a lease in Connecticut with a tenant who then put down $700 cash deposit with promise to pay first month's rent and rest of deposit when he obtained keys yo move in.  4 days before the beginning of his lease he informed us that he could not move in until the following month. Told him if he did not take possession of apt as stated in lease he would forfeit his deposit since we have already refused other applications and would be out the rent for one month.  Are we entitled to keep the deposit since he is in breach of the lease contract?

I am not sure about the deposit, but if the tenant signed the lease, I believe they are obligated to pay regardless of whether they are living there. A lease is a signed contract, by both parties. What if the situation were reversed and you said, " oh shoot, you know you just cant move in when I said you could, can you just do it next month?" The tenant would be furious.
If it was called a cash deposit and not sec.dpst you probably can keep the $$$. Otherwise you may have to return the deposit and sue for breaking the lease, to include rent until new tenant is found and expenses finding a new tenant…. I would try to get a letter from them stating why they changed their mind. This may help when you take them to court. It removes he said-she said… This is why when a contract is signed, it should be call a non-refundable hold deposit which is transfer to sec.dpst when new tenant gives you the balance due and you give them the keys. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Unfortunately, it is impossible to give comprehensive real estate/tax advice over the internet, no matter how well researched or written. Therefore, it is up to you to become familiar with Fed/State/Local Tax Laws. Also, if you have real questions, you should consult with an attorney or tax professional……Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Free Trial Download with data. Check out the new $$$$ for 2013
Login to post a comment