Legally they are bound by the lease, but if you really try and force them to pay you will be dealing with them in court for months and all the while with a vacant property. My advice is to move on. Call back your number 2 choice of tenants.
I think you learned a big lesson. A cardinal rule of landlording. At the time they sign the lease, they give you cash or certified funds for the security deposit. Otherwise, no deal. Also don’t turn down other prospects until you have a signed lease and a deposit in the bank.
My wife and I are new to the whole investing game and we have recently purchased a single family home and are in the process of locating a tennant. We found a family who was eager to get the place. They signed the lease and wanted to move in July 1. We have been trying to collect the security deposit and first/last month rents now for 3 days to no avail. We finally cornered the guy and he admitted that he and his wife are looking to place an offer on a home (to buy) and won’t need to rent. In our lease it specifically states that if the lease is broken the tennant will forfeit the security deposit and the last months rent. We never received these funds! I informed the tennant that we have turned down several other offers in the past few days because we thought we had a deal so even though we feel you owe us the last month rent plus the security deposit we will be willing to settle for a half’s month rent (what we feel we lost) and everyone can go on with their lives. He told me to speak with his lawyer.
Here is the question… Do my wife and I have any chance of collecting the money we feel is due us. We are in the process of contacting our lawyer however, do not want to pay laywer fees for a case we have no chance of winning. Does anyone have any experience, suggestions, or thoughts that might help???
Aren’t we due anything? Yes . . . - Posted by Joe Kaiser
Posted by Joe Kaiser on June 19, 2000 at 01:00:53:
Yes, you get to keep everything you’ve collected so far. Unfortunately, that’s not much.
You need to sit down and figure out what makes sense. Look at the situation and access your strengths and their weaknesses. They’ve got a weak spot as big as a barn . . . they’re buying a house.
Judgments have a real good way of mucking up new financing. Run down there, file a small claims action, and let them know that you’re really really sorry you had to file the claim and in all likelihood, screw up their new financing. Darn.
I will take a 50 or 100 deposit for a few days for them to make a final decision/ non-refundable. I continue to maket the property, and accept offers behind them. No money, no deal. Cash or certified checks for the ENTIRE amount or no keys … PERIOD. If they can’t come up with the money now, they can’t afford my house.
It would be more trouble than it’s worth… - Posted by SusanL.–FL
Posted by SusanL.–FL on June 16, 2000 at 11:09:51:
trying to pursue this matter with a lawyer (and I doubt you would ever see one thin dime).
Next time, collect the $$ when the tenants sign the lease.
If I were you, I would just get on with life and go find another tenant.
Just be glad you didn’t turn the keys over to them b/4 you had all your ducks in a row. That’s something my husband did once–BEFORE I had taken care of all the necessary ‘paperwork’ that I require b/4 moving in (copies of driver’s licenses, copies of social security cards, license plate numbers, receipts for turning on the water and electric in their own names). Once they were in, they pretty much tried to tell me to ‘pound salt’ UNTIL I told them to start packin’… I won…
