Tenant’s Security Deposit for Last Month’s Rent?

Getting tenants to pay their last month’s rent can be difficult-especially when the security deposit is equal to one month’s rent. Tenants tell the manager “just keep my security deposit instead.”  But if you’re stuck applying the security deposit to last month’s rent, you have nothing left over to cover apartment damages and cleaning that would ordinarily come out of the security deposit.

You could file an unlawful detainer against the tenants to collect the last month’s rent, but that is time consuming and the tenants could vacate prior to a judgment. You’re better off getting them to pay up in the first place.

Many tenants genuinely believe that the security deposit is the same as last month’s rent and find nothing wrong with substituting one for the other. To educate tenants, make it clear from the onset that the security deposit is not rent, that it will not be applied to rent, and the tenant must pay full monthly rent on or before the first day of each month, including the last month of the lease term.

Civil Code § 1950.5 makes it clear that the security deposit is not rent. Even though the security deposit may later be used to cure defaults in rent, it may not be used by the tenant as rent before they move out.  But, you must make your tenants understand this rule.  To help out, don’t make the security deposit exactly one month’s rent.

Review your security deposit policy with tenants before they move out. Upon receipt of a thirty day notice, a conference should be held with a tenant advising them about the security deposit and move-out procedures.  A letter that reminds the tenants of your policy is a good idea.

If you are certain the tenant will vacate the premises as promised and leave the apartment in good condition, you could always agree to let them apply the security deposit against the final month. But there are no guarantees.  That’s why we recommend against this.  Among other things, it might be difficult to find the ex-tenants to serve them with a small claims once they vacate.  For tenants who refuse to cooperate, a three day notice may be served and unlawful detainer filed.  By following the above steps, you can minimize the problem of tenants using the security deposit as last month’s rent.

The Sheriff Lock-Out

The San Diego County Sheriff has set up new rules for conducting tenant lock-outs at the end of the Court eviction case. This is bad news for landlords, who are already experiencing Court delays in overall unlawful detainer process.

Once the Court has entered the judgment in your favor, the Court sends the paperwork to the Sheriff to kick the tenants out. Called a Writ, it is a five day notice to vacate.  For many years, the Sheriff’s policy is that the Sheriff mails to our law office written notice of the lock-out date, but not the time of day of the actual lock-out.  Then, the day before the date stated in the mailed notice, the Sheriff’s office places a phone call to you or your agent at the phone number you have given us, stating the exact time of the lock-out.  We have come to rely on this.  It has always been the very next day at the time given.

All that is changed. Under the new rules, the lock-out date notice that is sent to us by the Sheriff is now called a “tentative” notice.  This means the date is an estimate; the lock-out will be no earlier than this “tentative” date, and might be later.  How much later?  Time will tell.  Maybe one, two, or three days later.

Not so bad, but the Sheriff also warns that you better not miss the phone call that gives you the actual time of the lock-out. If you do miss the phone call, there will be no eviction, so start your case over.  What’s worse, you may have to stay by the phone for more than one day waiting for the Sheriff to call to give you a definite date and time.  And that applies to the locksmith or your maintenance technician as well.  Don’t forget that you’re expected to have access to the unit with either master keys, or a locksmith to quickly change the locks in the Sheriff’s presence.

Any questions? Please don’t hesitate to call our office, we look forward to hearing from you.