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-   -   Landlord/Renter verbal agreements (https://www.askmehelpdesk.com/showthread.php?t=251101)

  • Aug 20, 2008, 02:51 PM
    cmour1
    Landlord/Renter verbal agreements
    Hello,

    My wife and I are in a situation right now where we are now leasing a home for the second time in the past 2 years. We signed our first lease about two years ago with our current landlord where we were required to put a security deposit down, as well as the first and last months rent up front which totalled $4500.00. We paid the deposit, and moved into the home. After about 8 months, we had no choice but to move out of state, back to where our family lived due to family health reasons. At this point, we knew that we owed her for the remaining months, so we used the last months rent that we put up front as well as our security deposit towards the remaining 4 months left on the lease. This brought us to where we only owed her for 2 months rent to be current. While we lived out of state, we sent the landlord money almost every other week until we paid her off in full, and we have copies of the checks to prove it. In October of 2007, we moved back into the SW Florida area, and heard that the home that we were renting before we left the state was back up for rent. We contacted the landlord, and we discussed doing a lease/option on the property because my wife and I really liked the home. Keep in mind, this was about the start of the market going down hill in the area, yet we had no idea just how bad it would get. So, we decided to sign the lease/ purchase agreement for the amount of $250,000.00, which to me, this was a simple lease agreement for one year, with the option to purchase the home within the time frame of the current lease. Before moving into the home, we walked the home, and noticed that the home was destroyed by the previous tenants, and there was so much in the home that needed to be redone, and/or replaced. We had spoken with the landlord and her boyfriend and stated that we are perfectly capable of fixing up the home, and they both suggested that since we were going to be spending money and time fixing up and updating the home, they would consider that as being the deposit, and first/ last months rent. This was all verbal, and we have nothing in writing, other than a letter stating that we could make the alteration and upgrades to the home. (We moved in Dec 1st 2007, and paid the first months rent, as well as continued to put money into her home) The only other signed letter that we have is the current lease which clearly states that no money was given to the landlord acting as a deposit, or first and last months rent, where as the first least clearly states that $4500.00 was given to the landlord prior to moving in. My wife and I made alterations and upgrades to the home including adding a wet bar, bumping out the master bedroom 3 foot to add a walk in closet, etc. Basically things that were going to benefit the landlord if she decided to sell the home because it would add value to the home, or it would benefit us if we decided to purchase the home.
    Now, because of the market crash, the home was appraised at only $189,000.00, so my wife and I decided that we would not be buying the home. With the verbal agreement in mind in regards to the money that we put into the home acting as the money that we would have had to put upfront prior to moving in($4500.00), I contacted the landlord and she now is telling me that we had nothing in writing, so I am getting nothing back. The total amount of money spent on the home between material and labor is in the neighborhood of $13,700.00. The only thing that I was asking of her is to give us back the first months rent, because we never used it (Again, I paid her with a check for the first months rent), the last months rent ( or give us the last month that we live in the home free), and the security deposit back. All of which was verbally agreed that the money that we put into her home, would act as those monies.
    I have written her emails expressing my thoughts and reasonings, and even offered to show her all receipts that we have for every dime that has gone into the home, but she refuses to pay us back. She has even gone as far as sending me an email telling me that we owe her money from the first time that we rented from her, and that we ruined her carpets, etc. My response was simply, "If we actually ruined your home during the duration of our first lease, two things would have happened when we came to you and asked you to rent it again. One, you would have not rented the home to us again until we paid you for any damages that were done, or not even rented it to us again. Two, if we damaged you property as you say, then surely, you would have required some kind of high deposit in advance to cover any expenses that you would have after we had moved out"

    Sorry that this question is so long, but there is quite a bit involved. My question is, do I have a chance at winning a small claims case against her, or am I SOL?

    Thanks!
  • Aug 20, 2008, 03:13 PM
    NowWhat
    You know, it is really who is more believable to a judge. It is a he said - she said kind of thing.

    It does speak to your credibilty the fact that she charged you the first time around and then didn't the 2nd. But then of course, it could be argued that since you have a positive history with her, she didn't feel it necessary to have the extra security.

    I would say that you have a 50/50 shot. At this point, what do you have to lose?
  • Aug 20, 2008, 08:27 PM
    froggy7
    This is a mess. Technically, your lease says that you didn't pay a security deposit or first or last month's rent. And written always trumps verbal in a rental agreement. Therefore, there's no security deposit for her to give back to you. Any money you spent doing alterations to her house were done for your benefit, and she doesn't have to reimburse you those costs unless you have something saying that she will in writing. It doesn't sound like you were going to be credited for the work if you bought the house, so there's really no legal basis for you to claim any of the money back. Sorry... that's just how it looks to me.
  • Aug 21, 2008, 07:52 AM
    rockinmommy
    You could certainly try a suit against her. Have you checked the small claims limit where you are located? It's fairly cheap to file, and the only risks I can see is if she hired an attorney and won you may be responsible for her legal fees. Or she could counter sue if she feels that she has proof that you owe her money.

    In my opinion, lease - options are a good deal for the landlord/seller, and RARELY for the leasee/buyer. The only way you don't get hosed is if you follow through and buy the house. If the contracts are like what I'm familiar with she won't owe you a dime. You may get a sympathetic judge, but that's probably about the only way you'd win.

    It's not fair, but that's how lease-options work.
  • Aug 21, 2008, 08:18 AM
    ScottGem
    Lets go back to the first lease. You broke the lease. The option was NOT yours to allow the security and last months rent to applkied towards the remaining months on the lease. However, unless she sent you an itemization of what she used the moneies for, she's out of luck there.

    Do you know if she rented the house before your lease was up? While she wasn't required to, she'a slo not allowed to double dip (collect two rentals at the same time).

    Finally, without anything in writing, its going to be an iffy situation. You have a lot of inference on your side, but no real proof.
  • Aug 21, 2008, 10:16 AM
    excon
    Hello c:

    I don't think you'll win. The only transaction that counts is the recent one. In that one, you agreed to move in with NO payments whatsoever. Yes, you fixed up HER house. I'm sure she's quite pleased about that, and she even sent you a letter telling you to go ahead. That you did, is on you.

    excon

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