What do we do with a security deposit if my tenant broke the lease 2 days prior to start date?
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What do we do with a security deposit if my tenant broke the lease 2 days prior to start date?
New tenant broke lease just before he was to move in. The apartmentt was painted and in good condition. He gave us the security over a month ago and we took it off the market. We even asked the old tenant to move out on the 20th (lost 11 days rent) in order to give us time prep. The unit was ready 3 days before the lease date because he asked if he can move in a couple of days earlier at no charge. The apartmentwas painted, new kitchen tile, and new appliances which he knew about. However, on the 29th he refused the apartmentt because he asked us to refinish the floors throughout. We offered a $700 credit to do the floor but he said no.
Asked on October 30, 2011 under Real Estate Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If there was a lease formed between you and the new tenant, then he is not entitled to break it, unless you violated the lease in some material way. So, for example, if the lease did not obligate you to refinish the floors, then it doesn't matter if he wanted it done; only if the lease provided that you would refinish the floors and you refused to, might that justify the tenant's termination.
If the tenant's breach was not justified, then he is liable for rent the whole remaining term of a written lease, or until you re-let the premises, whichever is sooner. If it was an oral or verbal lease, then he is liable for 30 days (the notice period).
The security deposit may be applied against rent which the tenant is obligated for but does not pay.
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