Legal Question in Landlord & Tenant Law in California
Tenant Broke Lease & Requests Deposit Refund
I own property that was mangaged by a property management company in Northern California. I recently gave my property manager 30-day notice and terminated service. I notified my tenants by certified mail of the changes and included an address to forward their rent.
My former property manager placed the tenants in a new property and the tenants have moved out of my property. However, they signed a rental agreement for one year, ending December 2006.
Rent was due September 1 and is considered late if not paid by September 3. I received a letter today from the tenants returning my house keys and they have requested the return of their deposit.
What are my legal rights and can the tenants be served a quit or pay notice? I want to know if I am obligated to return their deposit and if so, what is the time frame.
1 Answer from Attorneys
Re: Tenant Broke Lease & Requests Deposit Refund
Your Tenant is liable for the rent through the end of the term. However, you are required to attempt to mitigate damages by demonstrating that you attempted to re-let the premises. If you re-let for the same amount (or more) then you have no loss, If you re-let for less, you can rever the difference between the amount for which you re-let and what the tenant who left was paying. You may apply the securoty deposit towards any u paid rent for the period which the property is empty while you attempt to find a new tenant. You may also apply the deposit towards any damage to the premises. You have 21 days from the date the tenant vacated to either return the security deposit or make deductions and return the balance, if any. If you make deductions you must provide a detailed breakdown of the deductions (I recommend including copies of invoices for repairs with the breakdown) and send that with the balance, if any. If you do not have the new address for the tenant use the last known address. You can sue for period the rent is due and unpaid until the end of the term or, wait until the term is up and seek to recover total whic is due at the end after taking into account any amount received from re-leasing the premises. You may have an action against the property management company for breach of fiduciary duty and interference with contract/economic advantaqe for the acts of their agent. Please feel free to contact me to discuss your options. Good luck.