twelvegates
Junior Member
What is the name of your state (only U.S. law)? Colorado
The question is whether the LL can withhold the security deposit for damages. Security deposit is only $600. LL is my friend and tends to be nonconfrontational, unlike me.
1) From about 2011 to mid 2014, LL allowed a couple and their minor daughter to live with her without a rental contract. They paid a portion of the utilities and hoped to buy the house as LL was planning to move in the next few years. They made improvements with her permission (new lights, new vanity, new garage door opener, paint, fake rock on walls, etc.). LL made no guarantee that tenants would be able to purchase house as she had no idea of its eventual value.
2) In mid 2014, LL rented house to tenants at reduced value, hoping they would save enough money for down payment. LL moved away from house a few days after signing a rental contract with tenants and their rental obligation commenced the following month. Contract indicates that all alterations to property require her written approval and also indicates that security deposit can be withheld for: unpaid rent, cleaning costs, key replacement costs, cost for repair of damages above ordinary wear and tear, and "any other amount legally allowable under the terms of this agreement". A plain reading of the rental document provides no other specific wording regarding the security deposit, though it does explain what tenants can and cannot do with the property.
3) In December 2015, LL's financial position changed and she had to sell house. She informed tenants they must be out or buy house before April 1 2016. She signs contract with real estate agent, who prices house $100,000 over what tenants are willing to pay. Tenants contact LL in March 2016, asking that security deposit be applied to last month's rent. LL refuses as she wishes to review condition of property after tenants leave.
4) When move-out inspection is conducted on April 2, tenants had removed all of their improvements, including those "permanently" affixed (i.e., they even chipped off decorative stone they had attached to a wall). The previous fixtures were not reinstalled, as they were evidently discarded when tenant improvements were performed, and cheaper fixtures were put up in their place. They removed hard wiring from the barn, plants in the ground, laminate flooring, etc.
LL understands that she cannot deduct for normal wear and tear, and since she did not have a written agreement with tenants regarding their improvements made prior to the signing of the rental contract, she believes that tenants had the right to take what they added to the property.
So what say you, learned ones? I'm pretty comfortable telling her that she can deduct for damages caused by tenant removal of flooring, wall coverings, etc. Any other thoughts?
The question is whether the LL can withhold the security deposit for damages. Security deposit is only $600. LL is my friend and tends to be nonconfrontational, unlike me.
1) From about 2011 to mid 2014, LL allowed a couple and their minor daughter to live with her without a rental contract. They paid a portion of the utilities and hoped to buy the house as LL was planning to move in the next few years. They made improvements with her permission (new lights, new vanity, new garage door opener, paint, fake rock on walls, etc.). LL made no guarantee that tenants would be able to purchase house as she had no idea of its eventual value.
2) In mid 2014, LL rented house to tenants at reduced value, hoping they would save enough money for down payment. LL moved away from house a few days after signing a rental contract with tenants and their rental obligation commenced the following month. Contract indicates that all alterations to property require her written approval and also indicates that security deposit can be withheld for: unpaid rent, cleaning costs, key replacement costs, cost for repair of damages above ordinary wear and tear, and "any other amount legally allowable under the terms of this agreement". A plain reading of the rental document provides no other specific wording regarding the security deposit, though it does explain what tenants can and cannot do with the property.
3) In December 2015, LL's financial position changed and she had to sell house. She informed tenants they must be out or buy house before April 1 2016. She signs contract with real estate agent, who prices house $100,000 over what tenants are willing to pay. Tenants contact LL in March 2016, asking that security deposit be applied to last month's rent. LL refuses as she wishes to review condition of property after tenants leave.
4) When move-out inspection is conducted on April 2, tenants had removed all of their improvements, including those "permanently" affixed (i.e., they even chipped off decorative stone they had attached to a wall). The previous fixtures were not reinstalled, as they were evidently discarded when tenant improvements were performed, and cheaper fixtures were put up in their place. They removed hard wiring from the barn, plants in the ground, laminate flooring, etc.
LL understands that she cannot deduct for normal wear and tear, and since she did not have a written agreement with tenants regarding their improvements made prior to the signing of the rental contract, she believes that tenants had the right to take what they added to the property.
So what say you, learned ones? I'm pretty comfortable telling her that she can deduct for damages caused by tenant removal of flooring, wall coverings, etc. Any other thoughts?
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