Legal Question in Real Estate Law in Maryland
Is there a rental agreement in place if the tenant paid a partial month's rent and the following month's rent, but not a security deposit when the contract addendum states that three checks must be issued by the tenant to the landlord before moving in: 1) partial months rent by personal check; 2) next month's rent by personal check and 3) security deposit by certified check? Unfortunately, our former property manager allowed the tenant to move in without submitting a security deposit. Isn't the rental agreement null and void due to failure of the tenant to provide the three payments mentioned above? With our former property manager allowing the tenant to move in without the security deposit, did this make rental agreement binding even though no security deposit was paid? If so, are there grounds to sue the property manager for not looking after the property owner's interest?
Please advise. Thank you.
1 Answer from Attorneys
Now that the person is in the unit, you have a tenant whether you like it or not. The tenant had every reason to believe that the property manager is an agent of yours and had the authority to allow the tenant in the unit without paying the security deposit first. With that said, have you considered that the rental agreement in place might actually help you out of your current predicament? If paying the security deposit is a term of the lease, then tenant is still required to pay it (even though he's already moved in) within a REASONABLE period after request. Tenant's failure to pay it may be considered a default under the lease. What you are your rights according to the rental agreement terms if your tenant breaches/defaults? Have you even tried collecting the security deposit form the tenant directly? Have you sent the tenant a written demand letter?
What was your relationship with the property manager? Was the property manager a full time employee? An independent contractor? What type of property management agreement do you have in place with the property manager and what does the contract say about the property manager's liability for negligent acts?
Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.*******