How rent increases affect deposits
When the rent rises, what happens to the first and last months' rent and damage deposits?
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Question: When you pay first and last months' rent and a damage deposit on a rental unit and then your rent increases each year, do you have to pay the difference in that last month's rent or deposit when you give your notice?
— Clair D.
Answer: You may have to pay the difference, depending on your state's law, your lease language and how your landlord has addressed the issue when the monthly rent was raised.
In many states, the landlord can require the tenant to increase the amount of the last month's rent and the amount of the security deposit to equal the sum of the new rent.
If a landlord increases the rent without immediately requiring the tenants to match that amount in the deposit or final month's rent, however, the landlord typically can't collect that money when the tenant moves out. Moreover, many states require landlords to place the last month's rent and any security deposit in interest-bearing accounts with the interest payable to the tenant annually or at the end of the lease. So there's a pretty good chance you may be due interest money but are not obligated to pay extra for that last month.
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Typically, landlords also have a specific period after a tenant moves to return the full security deposit or present itemized, written notices of any damages or rent arrears to which it has been applied — and then enclose any remaining amount of the security deposit.
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In Florida, for example, that period is 15 days from the rental agreement's termination, but only if the landlord doesn't intend to impose a claim. If a landlord does plan to make a claim there, a written accounting of it must be sent by certified mail within 30 days to the departing tenant after the lease ends. If the landlord doesn't send the notice within 30 days, the landlord forfeits the right to impose this claim, unless the tenant failed to give proper notice.
It is important for renters to keep all deposit and rent receipts, plus copies of any agreements made with the landlord and other correspondence. Landlords taking over a property may sometimes claim they didn't receive money from the previous landlord, even though it is their legal responsibility to square this away with the previous owners and property managers.
Make sure you get every dime due to you. Good luck in your move.
"House prices going down drastically but rent is going up? I haven't understood this for 5 yrs now. Am I the only one?oh and they have to wait until the lease is up to jack you, but they can when it's up.I live on the water in st pete fl , house was valued at 689,000.00 now they are about to lose it and can't get 200,000.00 for it . although I did live there before the crash and have gotten rent cut by more than half ,from 2,500 t0 1,400, because I found out it was about to go into foreclosure..."
My comment: in your case, in the past, when the house was worth 689k, the house *should* have rented for $6500 to $7000 per month. Now, if it's worth $200k, it should rent for $1700 to $2000. If the mortgage was based on the current value of the house, those amounts would let the landlord make the payment and pay for repairs. Like you said $1400 is a good deal for both of you, the landlord ain't making the pmts and you're in a nice house for now. But, if the A/C breaks, I doubt he'll fix it since he's planning to repo anyway. We know that house (and mine) were not really worth the big prices BECAUSE they would not rent for enough to cover the payment. If the Landlord paid $689k for the house, his payment was over $6000 per month, so he was adding $2k out of his pocket every month: after a year, he had invested $689k + $24,000 -- he had paid $713k for it. He needed to sell it for that to break even. Obviously, the market went to hell before he could sell it for that, and now... He can't keep taking money out of his savings or job to pay money he'll NEVER get back. So, yes, the value of houses is related, but not tied to what they'll rent for. All the people that lost their houses can't buy again for a while, and they're renting. Lots of them out there who need a place to live and not as many people are able to buy houses and rent them out. Lots of renters means rent is kinda high. Not many buyers means low sales prices. Supply and demand are all screwed up right now and it's going to be years before it's normal again. Landlords can't and won't rent a house for less than the payment now unless they're gonna let the house repo. They won't take money out of their pocket every month and HOPE for a higher price in the future.
I rent out a condo and I've got a really good tenant. Always on time with rent, keeps the place clean, really good guy. His lease was over about 6 months ago, so it's month-to-month now. I have NOT tried to make him sign a new lease because everything is good. I've been considering cutting his rent $50 or so... I don't want this guy to move. Good tenants are USUALLY treated good. When he told me the garbage disposal was not working, I had a new one there in 30 minutes AND paid him to install it.
I am in Afghanistan reading MSN to keep up on local news. I have a house on the water near Crisp Park. What is your general location?
If you don't want to pay the difference, you can move out. They can obviously get higher rent for the unit - or they couldn't raise the rent.
I don't understand why this would be a problem for people. It's only the difference. So if $1100 becomes $1200 - you only have to come up with an additional $100 for the security deposit. If you can't afford the additional deposit, then you probably can't afford the new rent, and you should be looking for a place you can afford.
And the article did mention that these laws vary by state.
Just like, I have NEVER had my security deposit go into an escrow and been given the security deposit plus Interest back!
I had one landlord, after decades of being a renter, who gave me permission to do a background check on Him.
ALL of the others Outright Refused.
If they hold "last month's rent" as a deposit, and the rent goes up, of course you have to put in more money so you have last month's rent covered.
I know what you are thinking : "It's the same place, so why should I have to put in more money."
Don't forget that the deposit covers damages AND people who fail to pay the last month and get evicted. So to cover the loss of rent, the apartment has to get a bigger deposit. They can't move someone else in until you are gone, so they cannot get the increased rent for at least a month.
Your failure to obide the contract should never result in them losing money. They didn't do anything wrong in that situation, the renter did.