My rental property caught on fire and the garage was damaged. I had tenants living there and the fire department deemed the house unlivable. My tenants just paid their rent two weeks ago but owed me $450.00 for deposit and late fees. Nothing of theirs was damaged in the fire and they are asking for their rent back. What is the proper thing to do?

Hello al:

If THEY caused the fire, I wouldn't give them back anything. As a matter of fact, I'd be considering a lawsuit against them.

If, however, the fire was caused by YOU, like faulty wiring, then I'd give them back their rent - less what was owed to you.

excon

I'm confused why would they owe you for the deposit? Wasn't that collected at the lease signing? And what late fees? From previous rent payments?

But I would pro-rate the rental, deduct whatever they own you and return the rest.