[RPPTL LandTen] Weird issue we disagree on in my office

Tue Apr 28 13:54:13 PDT 2015

Hi Eric,

Yes, I would place this in the lease. Often people pay a Last Month’ Rent but then pay the last month of the occupancy due to uncertainty and when it rolls over to month to month.

For example, they ask the landlord if they can stay longer, they do, they continue to pay the monthly rent, they pay, give notice to terminate the month to month  on the 14th day of the month they are leaving and now the landlord is holding a last month’s rent. So no error on the tenant’s part. It actually is very common.

Thanks for your input! 

Harry

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From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Eric Jacobs
Sent: Tuesday, April 28, 2015 4:06 PM
To: RPPTL Landlord Tenant Committee
Subject: Re: [RPPTL LandTen] Weird issue we disagree on in my office

IMHO (see below) 

Eric Jacobs

 <mailto:eric at beloffparker.com> ejacobs at nexterralaw.com

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 Landlord collects a $700 Security Deposit and a $700 Last Month’s rent (advance rent).

Last month of lease or when it goes month to month, tenant pays rent. ( they did not have to but did anyway) Tenant leaves on good terms giving proper notice.

So, Landlord now still has a $700 Security deposit AND a $700 Last Month’s rent.

Damages to the place are $1000.

1. Can Landlord use part of the unused Last Month’s rent for the damages or must it be returned?  Not unless lease expressly provides that any deposit or advance rent can be used for same.  It would be a rather odd construct though as the Tenant’s payment of last month would by definition be an error wouldn’t it?  

2. If not, would a clause like this work “Tenant agrees that unused prepaid Last Month’s Rent, if any, may be applied to damages to the premises or money owed to the Landlord if such damages owed exceed the Security Deposit held by Landlord”   I’m not sure where you are proposing this clause to appear but would prefer something like “Tenant agrees any advanced payments by Tenant may, at Landlord’s option, be used as an additional security deposit”

My view: I think this is fair and legal. 

Why should a Landlord have to return some unused Last Month’s rent if the Tenant destroys the place and owes more than the security deposit? And if they agree to it even more so.

Statute:

(9) "Advance rent" means moneys paid to the landlord to be applied to future rent payment periods, but does not include rent paid in advance for a current rent payment period. 

(11) "Deposit money" means any money held by the landlord on behalf of the tenant, including, but not limited to, damage deposits, security deposits, advance rent deposit, pet deposit, or any contractual deposit agreed to between landlord and tenant either in writing or orally

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