Ask Me Help Desk - Rent Deposits

I am sub-letting my two bedroom house in Florida. I received a deposit of $825.00 from a guy (which is equal to one months rent) on the 21st of last month. His move in date was to be February 1st. On January 31st, he informed me via email that he was not going to take the room. This was my response to him and his answer. He is now threatening me with court. I just want to know if I am correct and what I should respond back to him with. I really don't want this to go to court and if I am misinformed, I will just give him back the money. He had stated in a previous email that he wanted $500 of the $825.00 back, but if I don't have to pay him anything, that would be great. He signed nothing, I sent him a rental application later to fill out, and the check was made out to me personnally.

Thank you!

His response
You have been informed wrong but no matter it will be for a court to decide. See You Soon Chuck

My response
Chuck:
I spoke to my real estate attorney and he told me to inform you of the following:
The deposit was a good faith payment that you were going to rent the room on the following month. This is called a"A Non-Refundable Reservation Deposit", which holds the rental property for you. If you decide not to move in, you lose the deposit.

This is to hold and save the room so I would not rent it to someone else. Additionally, I have incurred expenses, as I had to purchase a new mattress for the room (I got the frame from a friend, not the frame and the mattress), plus I lost three potential tenants that were willing to move in ASAP, as I had taken good faith money from you to secure the room and I informed them that it was already rented. Now have to start all over again to find a renter.
You really should not expect to have it both ways, since you backed out, why do you even think you should get your money back? You are in general giving notice to move out ( not move in) with less than a months notice. You will owe one months rent, the deposit is equal the rent.
Tina

His response
Tinia, haven't heard from you on the money you took from me with out a contract. Stealing money is a felony 0ver 500.00 in Florida. Avoiding me won't help, I will file charges. I have your home and work address if I don't have this seattled by Monday, I will contact the Ft. Lauderdale police and on the Check you cashed.. Chuck

Quote:

Originally Posted by poechristina

I am sub-letting my two bedroom house in Florida. I received a deposit of $825.00 from a guy (which is equal to one months rent) on the 21st of last month. His move in date was to be February 1st. On January 31st, he informed me via email that he was not going to take the room. This was my response to him and his answer. He is now threatening me with court. I just want to know if I am correct and what I should respond back to him with. I really don't want this to go to court and if I am misinformed, I will just give him back the money. He had stated in a previous email that he wanted $500 of the $825.00 back, but if I don't have to pay him anything, that would be great. He signed nothing, I sent him a rental application later to fill out, and the check was made out to me personnally.

Thank you!!

His response
You have been informed wrong but no matter it will be for a court to decide. See You Soon Chuck

My response
Chuck:
I spoke to my real estate attorney and he told me to inform you of the following:
The deposit was a good faith payment that you were going to rent the room on the following month. This is called a"A Non-Refundable Reservation Deposit", which holds the rental property for you. If you decide not to move in, you lose the deposit.

This is to hold and save the room so I would not rent it to someone else. Additionally, I have incurred expenses, as I had to purchase a new mattress for the room (I got the frame from a friend, not the frame and the mattress), plus I lost three potential tenants that were willing to move in ASAP, as I had taken good faith money from you to secure the room and I informed them that it was already rented. Now have to start all over again to find a renter.
You really should not expect to have it both ways, since you backed out, why do you even think you should get your money back? You are in general giving notice to move out ( not move in) with less than a months notice. You will owe one months rent, the deposit is equal the rent.
Tina

His response
Tinia, havent heard from you on the money you took from me with out a contract. Stealing money is a felony 0ver 500.00 in Florida. Avoiding me won't help, I will file charges. I have your home and work address if I don't have this seattled by Monday, I will contact the Ft. Lauderdale police and on the Check you cashed.. Chuck

Your attorney is correct. Another name for the money is "earnest money". STOP calling it a security deposit! Why would a complete stranger give you money? He wouldn't. So it is obvious that he gave you the money so you would hold the property for him until the first of February. Therefore, it is earnest money which is going to be used to cover expenses such as placing another ad, showing the property and not being able to rent to someone else the first of February. It would be nice if you had the names and telephone numbers of the people you turned down. They would be excellent witnesses. Keep track of all your expenses. Put your ad back in the paper. Keep records of the people interested in the rental. You'll need to prove that you have attempted to do everything you would normally do to rent a property. If he does take you to court, think about filing a cross complaint for additional damages. Not that you would probably get them, but it might stop him in his tracks and make him walk away with the current loss. If we wants to call this a "security deposit" fine. A security deposit is used by the landlord to cover rent that has not been paid and to pay for damages. If you wants to think of this as security deposit, then he would have also agreed to rent the property. If he rented the property, then he needs to fulfill his obligation to pay rent for the term of the lease and owes more that what he has already given you. Since he hasn't signed a lease, it is a verbal month to month at the least. A month to month lease requires a 30 notice to end the lease, which he didn't give you. Either way you should win the case.

Quote:

Originally Posted by landlord advocate

Your attorney is correct. Another name for the money is "earnest money". STOP calling it a security deposit! Why would a complete stranger give you money? He wouldn't. So it is obvious that he gave you the money so you would hold the property for him until the first of February. Therefore, it is earnest money which is going to be used to cover expenses such as placing another ad, showing the property and not being able to rent to someone else the first of February. It would be nice if you had the names and telephone numbers of the people you turned down. They would be excellent witnesses. Keep track of all your expenses. Put your ad back in the paper. Keep records of the people interested in the rental. You'll need to prove that you have attempted to do everything you would normally do to rent a property. If he does take you to court, think about filing a cross complaint for additional damages. Not that you would probably get them, but it might stop him in his tracks and make him walk away with the current loss. If we wants to call this a "security deposit" fine. A security deposit is used by the landlord to cover rent that has not been paid and to pay for damages. If you wants to think of this as security deposit, then he would have also agreed to rent the property. If he rented the property, then he needs to fulfill his obligation to pay rent for the term of the lease and owes more that what he has already given you. Since he hasn't signed a lease, it is a verbal month to month at the least. A month to month lease requires a 30 notice to end the lease, which he didn't give you. Either way you should win the case.

Thank you so much! I just hope that he doesn't try to do something to the property to get even.