I wonder if security deposits could be held in some type of escrow account for this very reason? I have no idea if that’s ethical, legal, or viable, but at least a renter wouldn’t be completely screwed if the sheriff shows up and invites you to move out.
We recently bought a house, but for the last 6 months of our rental lease I was worried that the house we were renting was headed to foreclosure. The homeowners had confessed financial problems to me so I had cause for concern…
In the end things worked out. They even allowed us to use our security deposit as last month’s rent since they knew we would leave the place spotless.
One other bit of advice: I would be VERY wary of renting a place from Craig’s List or any other dubious/unknown source. I would rent a place through a realtor or agent. At least someone would be accountable…
