Applying Security Deposit Toward Final Rent

[castillion]

Hello,

I had been in a year lease that expired 1 1/2 years ago so have been in a month-to-month situation after that. A few months ago, the landlord raised the rent significantly which prompted me to look for new rental in which to live. I found one, and had to put down a lot of money to secure it that I'm not in a position to pay the final rent of my old rental.

I told the landlord just to apply the security deposit toward the final rent and I wrote a check for the slight difference. Now the landlord is insisting I need to pay the full rent or restore the full security deposit even though I have given 30 days written notice I will be out of the property. They are claiming I am default and I am wondering if they can sue me, and if I could be held for damages including their attorney/legal fees (which is covered in the lease).

The lease doesn't explicitly prohibit the deposit being applied toward the final rent (like my new lease does I noticed), and given I'm gone in 30 days it seems crazy they could sue me since they have all the money due them except for any damages which I promised I would pay at the time of move-out. Do they have a case?

Thanks for you advice!a

[OHlandlord]

I hear this all the time. They most certainly *DO* have a case against you. All state laws say that those security deposits are to be held for the damages on the unit, not for rent. They are security for the LL against unreimbursed damages to his unit. It is not your right to apply them towards your unpaid rent. You have failed to pay your rent at this time. The LL may begin eviction proceedings against you immediately for non-payment. Once filed in court, even if it is later dropped or you are out of the unit before the hearing, a record of eviction being filed against you will remain on your court record for years. Any future LL will be able to see that a LL had to file eviction on you for non-payment. That will severely limit your ability to obtain future rentals! (No LL I know will accept any tenant who ever had eviction filed against him.) Your only chance to find a rental then would be limited to less desirable rentals where the LL does not check this.

If you do not pay the rent now, you will owe the rent, the attorney fees, & the court costs. The LL may take you to court for a judgment against you for any monies owed. This will affect your credit rating, will stay on your credit report for years, and will make you unable to buy property or large ticket items on credit. A judgment may raise the rates on your credit cards (since it shows a default on payments). The LL can garnish your wages for a judgment, can attach your bank accounts, and in some places may lien personal property (like cars or large screen TVs). I suggest you borrow the money to pay your rent through the entire notice period until you move out. (You did give proper written notice to vacate, right?)

Once you vacate, the LL must account for your security deposit within a certain amount of time (varies by state). He must send you a statement of what was deducted from this deposit, along with any balance on it. This deposit is for his protection and no LL will allow you to take it away. What if there were major damages to the unit? (- not saying that you have done this.) If a LL allowed his tenant to use that deposit for rent, there would be no money to guarantee repairs for the damages done to the unit. He would be left with hundreds if not thousands of dollars of damages with no money to fix them! That is why you may not use this deposit for rent. I suggest you get a loan, borrow from relatives or friends, but manage to pay your rent before he files eviction. Good luck.