I have a tenant who has signed a year lease but is now breaking after 7 months because she is moving out of state. Can I legally keep her security deposit?

Not unless

a) she leaves damages that you need the deposit to pay for repairs
b) she leaves owing you rent
c) you negotiate this as part of a buyout

A security deposit is given for the sole purpose of securing the landlord against repairs needed after the tenant moves. Many states also allow for it to be retained if there is unpaid rental.

Tenants cannot just break a lease. She is responsible for the remaining 5 months. So, if she leaves without paying, then you could hold the security deposit against unpaid rent. The kicker here is that you can't double dip. So if you rent the unit immediately, then you haven't lost anything.

My recommendation would be to negotiate a buyout. Tell her she is responsible for 5 months more. But you will settle for a 2 month payment. And that you will apply the security towards that payment less any repairs needed. Get it in writing.

Hello yas:

No. You can charge her rent from the time she moves till the time you get another tenant. IF that amount exceeds the security deposit, then you may keep it and charge her the balance. If it doesn't, you can't. If there's damamges, then of course, you can keep what it costs you to repair the damages.

In most states, YOU are required to rent the place as soon as you can to mitigate her damages.

excon

The security deposit serves as insurance to the landlord that the unit will be inhabited for a set period. Usually, it serves as a damage deposit too. Before paying a deposit, which sometimes equals one or two month's rent, ask the person in charge:

1. the exact amount of the deposit
2. the purpose of the deposit
3. what conditions will effect its refund
4. when the refund will be made.

Unless rule three is specifically stated in the rental lease agreement, save your $20 dollars. (the cost of small claims court)

Hello combat:

Even if rule #3 is not spelled out in the lease, it IS in state law and THAT is what landlords and tenants should go by. Actually, all 4 of those rules are spelled out in most states landlord tenant laws.

excon