Legal Question in Administrative Law in California

Landlords rights

We (landlords)signed one year lease contract with a single tenant. We have received the deposit and we were going to receive the first month rent paid on the date of possession of the flat (Sep. 1st).

Exactly 24hours later the tenant called us saying that she is not able to move in anymore asking us to cancel the contract. What are our rights? Keep the entire or part of the deposit?

Thank you.

Claudio


Asked on 8/01/01, 6:45 pm

1 Answer from Attorneys

Re: Landlords rights

Well, as with many legal questions, it depends. How was the "deposit" characterized in the contract? If it's a "security deposit," you have an obligation to return it b/c security deposits are for such things as repair damage to the premises, clean the premises when the tenant leaves, etc. Your facts do not present such a scenario.

If it was a "holding" deposit, in other words money to hold the apartment, then you may be able to keep a "reasonable" amount of the deposit for additional advertising and a pro-rated amount of rent while the property was left vacant. However, it sounds from your question that this was a standard "security deposit."

Your legal recourse would probably be to return the security deposit and sue the would-be tenant for breach of contract. But, again, you'd probably only be able to recoup additional adverstising fees and a pro-rated amount of rent for the time the property remained vacant. I would suggest that you try to negotiate with the tenant and explain that it's not really fair and that she should compensate you for the reasonable expenses it's going to take to get a new tenant. She has no obligation to do so, other than she may be avoid a lawsuit for breach of contract. Good luck.

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Answered on 8/02/01, 1:38 pm


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