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View Full Version : Nonrefundable security deposit (PA)


sfajk
May 30, 2006, 04:17 PM
Is it legal to have a nonrefundable security deposit in pa? I am trying to find a way out of my lease, but I am not sure the best way to do it. They say I have to give 3 months notice and pay 4 months rent as a fee. That would equal about $2000. They might have called it something besides a security deposit, but it does the same thing. I have to check my lease again when I get home to see exactly what they call it

Thanks for any help

Chris

HarryPT
May 30, 2006, 04:36 PM
What Does Your Contract Say? I Know For Sure In Glendale Cali There Is A Such A Thing As Penalty For Breaking The Lease But Its Not More Then The Security Deposite (I Hope You Didn't Put Down 2.000 For A Security Deposit) Why Don't You Find Someone To Take Over Your Lease?

sfajk
May 30, 2006, 07:07 PM
There is a clause in the lease for breaking the lease before its over. And it is 3 months notice with 4 months rent as the fee. I'm not saying that is a state law, just something written in the lease. I have to check the lease again to see what they call it, but it seems they got my security deposit, but called it something else and told me it is non refundable. I don't want to deal with subleasing, because then I am liable for the new person to enter the lease.

LisaB4657
May 30, 2006, 07:17 PM
You are talking about breaking a contract that you made. The landlord has obviously had experience with this type of thing before and has decided to incorporate a "break fee" in the lease. If there had been nothing in the lease about a "break fee" and if you went ahead with breaking your lease did you expect that you would be able to do so without any kind of payments being owed to the landlord? And that you would be entitled to the return of the full security deposit?

If there is no "break fee" in a lease then the general law is that the tenant is responsible for payment of the rent until the end of the original term or until the landlord re-rents to a new tenant, whichever is earlier. If you are only 2 months into a 1 year lease and you break now, you could be responsible for up to 10 months of rent. The landlord would be entitled to retain your security to recover a portion of what you owe and sue you for the rest. If you are 9 months into your lease and want to leave now, since the landlord has a 4-month fee built into your lease you are better off just moving and continuing to pay the rent on the empty apartment.

RickJ
May 31, 2006, 03:23 AM
Basically consider it an offer. When tenants of mine ask about breaking a lease, I look at their time left, look at my traffic to determine how fast I think I can get it re-rented, then just make them an offer - which usually amounts to our keeping the deposit and charging them for anywhere from 2 to 4 months beyond the time that they move.

Actually, you're fortunate. Landlords do not even have to have a clause like that - or make an offer. The jerky ones just say "too bad" and charge you for the whole period.

sfajk
May 31, 2006, 04:33 PM
Okay I checked out the lease. They called it an origination fee, and charged it to me twice because it was me and my girlfriend moving in. it doesn't work like a security deposit because they keep it no matter what and it doesn't go towards anything I might owe them in damage or whatever.

The only part I thought was wrong was charging it twice, but everyone else I've asked said that doesn't seem right.

RickJ
Jun 1, 2006, 03:48 AM
Yes, it sounds "not right" but to check it further we'd need to see the language of that section.

Can you either scan it and post the image - or type out that section? Most importantly would be to see if it says "per person" re that fee.

sfajk
Jun 1, 2006, 07:48 AM
2. Security deposit/origination fee: if the origination fee box on page one has been checked off, tenant agrees to pay the nonrefundable origination fee shown on page one. If tenant pays the origination fee, tenant is not required to pay a security deposit. However, tenant shall be responsible for all violations of this lease to the same extent as if a security deposit had been posted. The origination fee cannot be used to offset any amount owed to landlord by tenant. If tenant gives to landlord money as a security deposit. Tenant may not use the security deposit for rent or to pay any amount due landlord.

RickJ
Jun 1, 2006, 08:12 AM
I'd agree there's nothing indicating that the fee would be charged twice for 2 tenants. Typically "tenant" means whoever lives there whether it be 1 or more people.

I would approach the landlord about it - and if he's not cooperative to either show you elsewhere in the lease where this fee is due "per person", then since it's probably not cost effective to get an attorney to do anythingI'd file a complaint with the PA Attorney General.

Dr D
Jun 1, 2006, 08:12 AM
Check with your state to see if it has a Landlord Tenant Act. Those laws can put limits on security deposits and their disposition, regardless of what is written in the lease.

RickJ
Jun 1, 2006, 08:15 AM
Here's a link to PAs Landlord-Tenant Law:
http://members.aol.com/StatutesPA/68.Cp.8.html