California -- Tenant broke lease six months early (re: security deposit)

My tenant broke her lease 6mths early and communicated that she understood that she would lose her security deposit but is now asking for it back. Below is the wording under security deposits in our lease agreement and in reading the very first sentence I believe it is saying that I can keep her security deposit because she did not keep to the covenants of our agreement, which was to lease the property from Sept 09 to Sept 10. Am I correct?

3. SECURITY DEPOSIT. On signing this Agreement, Resident shall pay to Owner the sum of $_________ as a deposit to secure Resident’s performance of the covenants contained herein. No part of this deposit is to be considered as an advance payment of rent, including last months’ rent, nor is it to be used for refunded prior to the leased premises being permanently and totally vacated by all Residents. After Resident has vacated the premises, Owner shall furnish Resident with an itemized written statement of the basis for, and the amount of, any of the security deposit retained by Owner. Owner may withhold that portion of Resident’s security deposit necessary (a) to remedy any default by Resident in the payment of rent or any other provision of this Agreement, (b) to repair damages to the premises, to include repainting, but exclusive of ordinary wear and tear, and (c) to remove trash and clean the premises to meet Owner’s re-rental standards, as provided by law. The unused portion of this deposit shall be returned to Resident without interest,

Your own lease answers this question. It says:

Originally Posted by Unregistered After Resident has vacated the premises, Owner shall furnish Resident with an itemized written statement of the basis for, and the amount of, any of the security deposit retained by Owner. Owner may withhold that portion of Resident’s security deposit necessary (a) to remedy any default by Resident in the payment of rent or any other provision of this Agreement, (b) to repair damages to the premises, to include repainting, but exclusive of ordinary wear and tear, and (c) to remove trash and clean the premises to meet Owner’s re-rental standards, as provided by law. The unused portion of this deposit shall be returned to Resident without interest,

Which is exactly what you should have done. Itemized any legal deductions from the deposit, send the statement and receipts if deductions were more than $125, and mailed it to the tenant within 21 days of vacating. No lease can force a tenant to forfeit a deposit. You always do a full accounting. In your case, you could have deducted rent until it was re-rented, advertising costs, agent fees if you one to find a new tenant, and any other non-reimbursed costs you suffered because of their lease break. If you failed to do this and send the statement within the 21 days, you need to refund their entire deposit now. The tenant can take you to court for wrongful withholding since you failed to send the statement and they can recover the deposit and 2x the deposit for wrongful withholding. Further, if you failed to offer the PMI (pre-move out inspection), you have not lived up to that law. Send the check to them.

I had a husband and wife lease my rental home over a year ago. The couple had to break their lease because they were getting a divorce. The wife asked me if I would consider leasing to her brother and his wife, but waive the deposit since she and her soon to be ex- husband made a deposit already. I had the new tenants sign an entire new lease. Under the security deposit section of the lease I put N/A. Because they did not pay a deposit. A year later the current tenants are moving out and want the deposit back that they did not pay. The sister that paid the deposit over a year ago is now asking for the deposit to be given to them. Are they entitled to this deposit? What are the statues of limitations on asking for deposits?

[sandyclaus]

Please do not dredge up an old, outdated post. Start a new thread so that your question can be addressed.

I had a husband and wife lease my rental home over a year ago. The couple had to break their lease because they were getting a divorce. The wife asked me if I would consider leasing to her brother and his wife, but waive the deposit since she and her soon to be ex- husband made a deposit already. I had the new tenants sign an entire new lease. Under the security deposit section of the lease I put N/A. Because they did not pay a deposit. A year later the current tenants are moving out and want the deposit back that they did not pay. The sister that paid the deposit over a year ago is now asking for the deposit to be given to them. Are they entitled to this deposit? What are the statues of limitations on asking for deposits?

[sandyclaus]

Originally Posted by Unregistered I had a husband and wife lease my rental home over a year ago. The couple had to break their lease because they were getting a divorce. The wife asked me if I would consider leasing to her brother and his wife, but waive the deposit since she and her soon to be ex- husband made a deposit already. I had the new tenants sign an entire new lease. Under the security deposit section of the lease I put N/A. Because they did not pay a deposit. A year later the current tenants are moving out and want the deposit back that they did not pay. The sister that paid the deposit over a year ago is now asking for the deposit to be given to them. Are they entitled to this deposit? What are the statues of limitations on asking for deposits?

Originally Posted by sandyclaus Please do not dredge up an old, outdated post. Start a new thread so that your question can be addressed.

Originally Posted by Unregistered I had a husband and wife lease my rental home over a year ago. The couple had to break their lease because they were getting a divorce. The wife asked me if I would consider leasing to her brother and his wife, but waive the deposit since she and her soon to be ex- husband made a deposit already. I had the new tenants sign an entire new lease. Under the security deposit section of the lease I put N/A. Because they did not pay a deposit. A year later the current tenants are moving out and want the deposit back that they did not pay. The sister that paid the deposit over a year ago is now asking for the deposit to be given to them. Are they entitled to this deposit? What are the statues of limitations on asking for deposits?

AGAIN, do not repost the same question in an old thread. START YOUR OWN.

[Grhowe]

If you have not given the accounting required by law then give it now. Deduct for damages first and rents owed last. Give the accounting. Do not return the deposit unless you are absolutely required to do so by a court or if after you have deducted damages you find it is owed as a matter of simple mathmatics in which case returned the balance. The statute requires you to do it within 21 days so do it even if it is tardy. You still have suffered damages regardless of whether you gave the proper accounting in the proper time frame. If you are sued then defend yourself. There are two sides to the story and yours is one of them. grhowe