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  • May 18, 2008 at 11:03 AM #12777
    dharmagirl
    Participant

    So, we’re currently renting a house in Temecula. We recently purchased a house and are in escrow. We close in a few weeks and plan to spend about 6 weeks doing repairs and renovations on the new place while we continue to live in the rental. We hope to move in August.

    Our lease ends on September 1st. A few months ago, as some of you may recall, the owners of the rental house asked if we wanted to buy this place as a short sale. Debt on this house is about $300K more than what it’s worth. They were EXTREMELTY indignant that the “bank wont even allow us to renegotiate the loan!”

    We graciously said “No gracias.”

    I told them that we needed to stay in this house until the end of the lease and they promised to make the payments while we’re here noting, “Even if we stopped making payments NOW, you’d be OK until September.” Alarm bells went off in my head and we decided to look for a house. I dont feel like rolling the dice on another rental and having this happen again.

    Their property taxes are paid up – on this house – but not on their Murrieta house. There is nothing on foreclosureradar.com either.

    They were aspiring “savvy investors” a few years ago and used HELOC money to play monopoly. Now, they’re up the proverbial creek with no paddles.

    So, I’m NOT confident that we’ll get our $2300 security deposit back. We’re thinking of making our last rent payment in July and telling the owners to simply apply our security deposit for August rent. To be honest, I’d be surprised if they still have the deposit. My intuition (which is usually spot on) tells me that we wont see that money again.

    Our first mortgage payment will be due in August, so not shelling out rent in August will help.

    We plan to leave the house in pristine condition. We’ve been paying for the pool service, the gardener and keeping things tidy.

    I plan to hire a cleaning service to scrub the place down when it’s empty, and we’ll have our handyman make any minor repairs. We’ll also pay the pool guy and gardener for August.

    I shared this with one of my closest friends – a real estate lawyer – and she said, “but that is just WRONG…unethical…you CONTRACTED to pay the rent through August and if they dont return the deposit, you can pursue legal remedies.” She made me feel like such a low-life. I realize $2300 is not a bank-breaker, but it’s principle of the thing.

    I dont feel like dealing with small claims court.

    Sorry this is so long…what would you do?

    May 18, 2008 at 11:17 AM #206856
    jpinpb
    Participant

    I am not sure of the legal ramifications, since you do have a contract w/them and the contract requires you to pay rent. They can come after you for rent and any damages suffered b/c you didn’t pay the rent. You lawyer friend would know better.

    On principle and intuition, I’d want to tell them to apply the deposit, especially since you’ve taken such good care of the place and unlikely you’ll get the deposit back, as you suspect and you’d end up going to small claims, get a judgement and maybe still not collect.

    May 18, 2008 at 11:17 AM #206910
    jpinpb
    Participant

    I am not sure of the legal ramifications, since you do have a contract w/them and the contract requires you to pay rent. They can come after you for rent and any damages suffered b/c you didn’t pay the rent. You lawyer friend would know better.

    On principle and intuition, I’d want to tell them to apply the deposit, especially since you’ve taken such good care of the place and unlikely you’ll get the deposit back, as you suspect and you’d end up going to small claims, get a judgement and maybe still not collect.

    May 18, 2008 at 11:17 AM #206938
    jpinpb
    Participant

    I am not sure of the legal ramifications, since you do have a contract w/them and the contract requires you to pay rent. They can come after you for rent and any damages suffered b/c you didn’t pay the rent. You lawyer friend would know better.

    On principle and intuition, I’d want to tell them to apply the deposit, especially since you’ve taken such good care of the place and unlikely you’ll get the deposit back, as you suspect and you’d end up going to small claims, get a judgement and maybe still not collect.

    May 18, 2008 at 11:17 AM #206966
    jpinpb
    Participant

    I am not sure of the legal ramifications, since you do have a contract w/them and the contract requires you to pay rent. They can come after you for rent and any damages suffered b/c you didn’t pay the rent. You lawyer friend would know better.

    On principle and intuition, I’d want to tell them to apply the deposit, especially since you’ve taken such good care of the place and unlikely you’ll get the deposit back, as you suspect and you’d end up going to small claims, get a judgement and maybe still not collect.

    May 18, 2008 at 11:17 AM #206994
    jpinpb
    Participant

    I am not sure of the legal ramifications, since you do have a contract w/them and the contract requires you to pay rent. They can come after you for rent and any damages suffered b/c you didn’t pay the rent. You lawyer friend would know better.

    On principle and intuition, I’d want to tell them to apply the deposit, especially since you’ve taken such good care of the place and unlikely you’ll get the deposit back, as you suspect and you’d end up going to small claims, get a judgement and maybe still not collect.

    May 18, 2008 at 11:24 AM #206871
    dharmagirl
    Participant

    Lawyer friend lives in a $4 million house and has exceedingly high principles. One of the reasons I love her.

    I’m not saying that I don’t have principles – I’m just annoyed that we have taken such great care of this place and, from what I know of their financial situation, I doubt they will return our deposit.

    They SHOULD have our deposit in an interest-bearing account – so they SHOULD have the money. But, contractually, I know it’s a different story…

    May 18, 2008 at 11:24 AM #206924
    dharmagirl
    Participant

    Lawyer friend lives in a $4 million house and has exceedingly high principles. One of the reasons I love her.

    I’m not saying that I don’t have principles – I’m just annoyed that we have taken such great care of this place and, from what I know of their financial situation, I doubt they will return our deposit.

    They SHOULD have our deposit in an interest-bearing account – so they SHOULD have the money. But, contractually, I know it’s a different story…

    May 18, 2008 at 11:24 AM #206954
    dharmagirl
    Participant

    Lawyer friend lives in a $4 million house and has exceedingly high principles. One of the reasons I love her.

    I’m not saying that I don’t have principles – I’m just annoyed that we have taken such great care of this place and, from what I know of their financial situation, I doubt they will return our deposit.

    They SHOULD have our deposit in an interest-bearing account – so they SHOULD have the money. But, contractually, I know it’s a different story…

    May 18, 2008 at 11:24 AM #206978
    dharmagirl
    Participant

    Lawyer friend lives in a $4 million house and has exceedingly high principles. One of the reasons I love her.

    I’m not saying that I don’t have principles – I’m just annoyed that we have taken such great care of this place and, from what I know of their financial situation, I doubt they will return our deposit.

    They SHOULD have our deposit in an interest-bearing account – so they SHOULD have the money. But, contractually, I know it’s a different story…

    May 18, 2008 at 11:24 AM #207010
    dharmagirl
    Participant

    Lawyer friend lives in a $4 million house and has exceedingly high principles. One of the reasons I love her.

    I’m not saying that I don’t have principles – I’m just annoyed that we have taken such great care of this place and, from what I know of their financial situation, I doubt they will return our deposit.

    They SHOULD have our deposit in an interest-bearing account – so they SHOULD have the money. But, contractually, I know it’s a different story…

    May 18, 2008 at 12:42 PM #206907
    Enorah
    Participant

    Almost every rental I have lived in the landlord has just applied my security deposit to last month’s rent.

    No harm in asking them to do that.

    I do not feel an ethical issue here at all.

    May 18, 2008 at 12:42 PM #206958
    Enorah
    Participant

    Almost every rental I have lived in the landlord has just applied my security deposit to last month’s rent.

    No harm in asking them to do that.

    I do not feel an ethical issue here at all.

    May 18, 2008 at 12:42 PM #206988
    Enorah
    Participant

    Almost every rental I have lived in the landlord has just applied my security deposit to last month’s rent.

    No harm in asking them to do that.

    I do not feel an ethical issue here at all.

    May 18, 2008 at 12:42 PM #207015
    Enorah
    Participant

    Almost every rental I have lived in the landlord has just applied my security deposit to last month’s rent.

    No harm in asking them to do that.

    I do not feel an ethical issue here at all.

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