QUESTION
Do we need to return a deposit to a tenant who backed out of a signed lease
Asked on Oct 26th, 2013 on Landlord and Tenant Law - Colorado
More details to this question:
The tenant paid a deposit on Sept. 2. He was supposed to move in on Oct 1. We had a major flood on 9-12 (an Act of God); we had to replace the carpet in one room; carpet was installed on Oct 16th (very late because the entire city was flooded). On Oct 13 he still wanted to move in. He called on Oct 14 saying he did not want the apartment, We told him we would not return his deposit because we had held it for him for six weeks. He is threatening legal action. In a good faith effort, we agreed to give him half of the deposit back.
1 ANSWER
3 Awards
Unfortunately, the answer to your question is maybe. It depends on the exact terminology of your lease regarding the security deposit and obligations created if the property become untenantable. The issue here is not whether or not he actually took possession but whether or not the damage was so severe as to make the home uninhabitable.
If you do keep his security deposit you'll need to comply with the CO Security Deposit Act or face potential triple damages. Also, if you keep the deposit and apply as rent you'll need to be able to prove that you attempted to mitigate damages.
This issue is likely more complex than it appears at first glance. I recommend contacting an attorney to discuss the specific facts of your case. I offer free consultations for this purpose. If you would like to schedule a consult please call 303-688-0944 and ask to be scheduled with Don.
Answered on Oct 27th, 2013 at 4:28 PM
Call Don at (303) 688-0944 or email at Reception@RobinsonandHenry.com This information is provided AS IS; and does not create Client Relationship.