Breaking a Lease Security Deposit and Early Termination Fee

[FLLL]

Florida.

My tenant broke the lease leaving in the middle of the one year term. He has signed the standard Early Termination Fee addendum in FL choosing the first option with the two month rent fee as liquidated damages. My question is can I include the two month fee plus the addition expenses I had to repair the property in my notice to him, which notifies him of my intention to keep part of his deposit? With other words, can I apply his security deposit towards the Early Termination Fee, and can I add to this amount all my repair costs that are beyond ordinary wear and tear?

 

[army judge]

Florida.

My tenant broke the lease leaving in the middle of the one year term. He has signed the standard Early Termination Fee addendum in FL choosing the first option with the two month rent fee as liquidated damages. My question is can I include the two month fee plus the addition expenses I had to repair the property in my notice to him, which notifies him of my intention to keep part of his deposit? With other words, can I apply his security deposit towards the Early Termination Fee, and can I add to this amount all my repair costs that are beyond ordinary wear and tear?

You could do many things.

Before arbitrarily taking the security deposit, it might be advisable to discuss the entire event with your attorney.

I'm sure you're familiar with the process, but it never hurts to review.

In your state according to the law, a landlord must return the tenant's security deposit within 15 to 60 days after the tenant has surrendered the rental property to the landlord (that is, returned the keys and vacated the property), depending on whether the tenant disputes any deductions taken out of the security deposit.

All Florida landlords must provide their tenant advance notice of any deductions they plan to retain from the deposit.

You, as a Florida landlord are required to, within 30 days of receiving a tenant's security deposit, disclose in writing

if the funds will be held in an interest, or non-interest bearing account
you are to disclose (as in name the account depository)
plus provide the rate and time of interest payments.

Landlords who collect security deposits are ordered to include a copy of Florida Statutes § 83.49(3) in the actual lease.

So far, so good? Great, we continue with a brief review:

In Florida any landlord who collects a deposit from their tenant, must pay to the tenant any interest earned on the security deposit (annually and at the end of the tenancy).
No interest need be paid to a tenant who wrongfully terminates the lease early.

But, make sure you have done the aforementioned, because the tenant could assert certain affirmative defenses at trial (if it goes there).

http://securitydepositrefund.org/florida-renters-rights-law.html

I hope that offers you a little insight on which you can make a rational choice.

Good luck...

I always advise my clients, just because you can assert a right, doesn't mean you should.

Its always better to compromise and negotiate than to ever litigate.

 

[FLLL]

Thank you for your reply. At the beginning of the lease I did not provide a notice to my tenant regarding if the funds will be held with interest, the bank name, and I did not include a copy of statue 83.49(3). This was a mistake, and I don't know to which degree it can be used as tenant's defense.

I have already paid an attorney to prepare a demand letter, and guide me thru the security deposit notice, but she seems to be impossible to reach, and replies with very vague answers. That is why I am here.

The tenant moved out two weeks ago. The early termination fee is for two months rent. the security deposit is for one month rent. my repair costs are for about one month rent. what do I list in the notice to the tenant regarding the security deposit? do I list all the repair costs plus the early termination fee, which will total 3 months rent, and say that I will keep the security deposit and expect a payment for the ETF, and since he is not going to pay, have the attorney send the demand letter?

 

[army judge]

You won't collect a dime. He's a deadbeat. You're chasing rainbows, unicorns, and windmills.

Keeping the security deposit could return to haunt you. Deadbeats never forget their money.

You sue him, he'll defend and the deposit omissions will come into play.

You're in Florida, a very debtor friendly state.

You retained a lawyer. You should work with the lawyer you hired.

 

[FLLL]

You have a good point that I may not be able to collect on this tenant. However I was more interested to know the legality of keeping the security deposit to offset part of the early termination fee. Does the law in FL allow for that? My attorney does not seem to be very familiar with the landlord / tenant statues, and has not answer that question yet.

 

[army judge]

You have a good point that I may not be able to collect on this tenant. However I was more interested to know the legality of keeping the security deposit to offset part of the early termination fee. Does the law in FL allow for that? My attorney does not seem to be very familiar with the landlord / tenant statues, and has not answer that question yet.

I suggest you consult another attorney. There are hundreds in FL.

 

[mightymoose]

Did the tenant leave you with a forwarding address? If not then you have nowhere to send the deposit even if you wanted to. It would be up to the tenant to contact you and demand the deposit.

 

[FLLL]

I just spoke to another attorney and he advised me that since I had the liquidated damages addendum signed, I can keep the deposit to cover the early termination fee. Also the tanant has given me his new address, so I will be sending the notice there. I will be adding the repair costs to that sum as well, unless the first attorney advises me otherwise.

 

[army judge]

I just spoke to another attorney and he advised me that since I had the liquidated damages addendum signed, I can keep the deposit to cover the early termination fee. Also the tanant has given me his new address, so I will be sending the notice there. I will be adding the repair costs to that sum as well, unless the first attorney advises me otherwise.

You're free to do whatever you want to do, sir.

We have no authority over you.