Q & A: Security deposit check bounced, what should landlord do?
July 1, 2008
Q: I signed a one year lease with the tenant couple days ago, the lease is going to be in effect on the 1st of August. I took the check for security deposit once we had the lease signed, but I have not given keys to the tenant. Now the check is returned and the bank is charging returned deposited fee. My questions are:
1. Can I terminate the lease and not to allow the tenant to move in?
2. Since it’s not indicated on the lease agreement, is the tenant responsible for the returned fee that the bank charged?
3. I allowed the tenant store some outdoor plants and furniture in the patio, do I need to follow the eviction procedure to have those items removed?
A:
1. Yes. In fact, you would be well advised to terminate the lease immediately. You will only have more trouble in the future with this person.
2. No, and for two reasons. First, the lease has not taken effect yet, and second, as you mentioned, there is no provision for it in the lease.
3. No. Just tell the never-to-be tenant that you are removing them to the front of the yard, to the sidewalk or the street and if he wants them, he can get them.
About the Author: Bob Cain
Some 30 years ago Bob Cain went to a no-money-down seminar and got the notion that owning rental property would be just the best idea there is for making money. He bought some. Trouble was, what he learned at the seminar didn’t tell him how to make money on his rental property. He went looking for help in the form of a magazine or newsletter about the business. He couldn't find any.
Always ready to jump at a great idea, he decided he could put his speaking and writing skills to work and perform a valuable service for other investors who needed more information about property management. So Bob ferreted out the secrets, tricks and techniques of property management wherever he found them; then he passed them along to other landlords.
For over 25 years now, Bob has been publishing information, giving speeches, putting on seminars and workshops, and consulting for landlords on how to buy, rent and manage property more effectively.