Legal Question in Real Estate Law in California
Security/Hold Deposit
Comments
Hello Everyone,
I showed the unit to a prospect tenant on March 18 and agreed that the he needs to put down the security deposit by March 22 of $700. By March 22, he didnt have the money. Then, on March 27, I told him that I dont feel comfortable in leasing the place to him because of the fact that he doesnt have the money to pay me for the security deposit. I also said that, I would let him rent the place if he put down $1250 security deposit (this is also the amount of rent per month). Then, on March 28, he called me and said that I can lease the place to someone else and that he'll see me in court for discriminating on poor people. The only thing that I could see that I'm at fault is that we had sign the one year lease. But, I dated my signature on April 1 (which is the day he is supposed to move in) and he signed and dated it on March 18. There was no last month's rent, just only security deposit. So that's why I was afraid and wanted to increase the security deposit. He makes $500/week, lives with his wife and two kids. What can I do now? Am I completely at fault? Please help. THANK YOU SOOOOOOOO MUCH!
3 Answers from Attorneys
Re: Security/Hold Deposit
You have done nothing wrong. The prospective tenant will have a hard time getting a judge to buy the argument that by expecting him to pay a security deposit, you have discriminated against "poor people!" That is no different than trying to buy an automobile you cannot afford and telling the dealer that because he wants more money than you can afford, he is discriminating against the poor.
Re: Security/Hold Deposit
Has he given you an money? If not, there is no valid contract.
"Poor" is not a class protected by the Constitution. Youwill only have problems if you discriminate against race, gender, age, disability, etc. Poor isn't one of them.
If he gave you money, give it back to him.
Re: Security/Hold Deposit
For reasons pointed out in the previous answer, the would-be tenant can't sue you for discrimination on the basis of claimed poverty.
The fact that you both signed a lease could be the basis for a lawsuit, but you have one or more solid defenses based on these facts: (1) you made it clear at a very early stage that you were repudiating the lease with good reason, and (2) there was a 'failure of consideration' in that the deposit wasn't given, which is a ground for rescission of a contract.
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