Hello,

I did read the California renters law but still have a question about a deposit and I hope someone can help! A couple applied to rent my condo and verbally agreed to move in the first weekend in February (next weekend). They gave us a $1200 deposit equal to one months rent but did not sign a lease. They gave notice to their landlord and even asked if they could begin yard work, which I allowed them access to the property. I took the property off the market and had a few other calls, which I declined as the deposit secured my new tenants.

Two days ago they called and said their current landlord had decided to reduce their rent in order for them to stay and would not be moving in after all. They also stated that under California law their "security deposit" can not be considered non-refundable and want the full amount back. After researching it seems that they were in a verbal agreement to move in and did not give me 30 days notice. I am now out a months rent and have to find new tenants.

Do I have the legal right to keep the deposit, and if so, what are the legal justifications to tell them so?

Many thanks!

Hello A:

You have the right to keep the deposit, because the prospective tenant "bought" and paid for the RIGHT to move in. You "sold" him that right by accepting his deposit and taking your property OFF the market.

I don't know. Some people think the deposit only obligates the LANDLORD, and not the tenant. I have NO idea where some people get their notions...

Write him a polite letter. Send it certified. Explain to him the IDEA behind deposits. Tell him if he doesn't agree, that he's free to sue you in small claims court where he'll be told the same thing by a judge.

Explain further, that if you get a tenant before the month is out, you'll refund the difference.

excon