Would this be legal?
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Would this be legal? (by NE [PA]) Jul 6, 2018 6:05 AM
       Would this be legal? (by NE [PA]) Jul 6, 2018 6:11 AM
       Would this be legal? (by Richard [MI]) Jul 6, 2018 6:18 AM
       Would this be legal? (by Frank [NJ]) Jul 6, 2018 6:20 AM
       Would this be legal? (by Jason [VA]) Jul 6, 2018 6:24 AM
       Would this be legal? (by Kyle [IN]) Jul 6, 2018 7:46 AM
       Would this be legal? (by Sisco [MO]) Jul 6, 2018 8:00 AM
       Would this be legal? (by WMH [NC]) Jul 6, 2018 8:16 AM
       Would this be legal? (by BRAD 20,000 [IN]) Jul 6, 2018 9:57 AM
       Would this be legal? (by Paulio [PA]) Jul 6, 2018 10:08 AM
       Would this be legal? (by Laura [MD]) Jul 6, 2018 10:10 AM
       Would this be legal? (by Mike45 [NV]) Jul 6, 2018 10:38 AM
       Would this be legal? (by rentON [PA]) Jul 6, 2018 10:39 AM
       Would this be legal? (by S i d [MO]) Jul 6, 2018 2:11 PM
       Would this be legal? (by cjo'h [CT]) Jul 6, 2018 2:29 PM
       Would this be legal? (by NC INVEST [NC]) Jul 6, 2018 3:33 PM
       Would this be legal? (by Ed [PA]) Jul 6, 2018 4:38 PM
       Would this be legal? (by Don [PA]) Jul 6, 2018 9:57 PM
       Would this be legal? (by WMH [NC]) Jul 7, 2018 7:20 AM


Would this be legal? (by NE [PA]) Posted on: Jul 6, 2018 6:05 AM
Message:

I had a tenant move out on June 30th. They were on autodraft rent payments. They didn't block their payment for July and I forgot to turn it off. So their rent pulled, he texted me and I am sending him a refund today. No problem. Simple mistake.

My question is, suppose this tenant did a ton of damage in excess of the SD and this money pulled by accident? I, as well as most landlords, would be tempted to use it against damages and return the difference. Is that legal? Could I keep any of that money or do I have to go through proper channels like court?

I'm just trying to think what would happen if I owed a local lumber yard $1,000 and send them a check for $1,000 when I meant to send $100 or $500?

--50.32.xxx.xx




Would this be legal? (by NE [PA]) Posted on: Jul 6, 2018 6:11 AM
Message:

I guess my point is, if this is legal, I would be inclined to leave the aurodraft on each time and just refund the check and play dumb. Unless of course they owed me a ton, then refund the difference and let them stomp and yell.

Again, legal??? --50.32.xxx.xx




Would this be legal? (by Richard [MI]) Posted on: Jul 6, 2018 6:18 AM
Message:

Interesting question. In the long run, I'd say it's up to the judge. If the tenant takes it to small claims and wins, well-- there's the answer. If you win, same thing. --66.188.xx.xxx




Would this be legal? (by Frank [NJ]) Posted on: Jul 6, 2018 6:20 AM
Message:

Its kinda stinky on its face and I doubt it would pass legal review. The lumber scenario isdifferent as it isa sales transaction which is supported by a bill of sale.

One is a commercial sale the other is a real estate contract. --174.225.xxx.xx




Would this be legal? (by Jason [VA]) Posted on: Jul 6, 2018 6:24 AM
Message:

I doubt it would be legal, but that being said if they hypothetically left damages then YOU would be taking THEM to court anyways. So at least this way you'll already have money in hand and they would then be forced to take YOU to court. Personally, I'd do it and wouldn't feel guilty about it. --73.177.xxx.xx




Would this be legal? (by Kyle [IN]) Posted on: Jul 6, 2018 7:46 AM
Message:

Put it in your lease: "Tenant authorizes ACH for payment of damages after move out." Then, it may hold up. If a judge ruled against you for the ACH, you would likely have a counter claim for the amount because of the damages and they would cancel out. Unless the judge awarded additional $$ to the tenant because they felt you incorrectly withheld their money. Or, if the judge disagreed with your calculation of damages owed.

I have had a tenant pay rent through the end of the next month, then found a new tenant mid-month and pro-rated the rent. But, I applied the balance to the damages the first tenant did. It has never been a problem for me, but also never specifically addressed in court. --73.102.xxx.xx




Would this be legal? (by Sisco [MO]) Posted on: Jul 6, 2018 8:00 AM
Message:

I agree with including it in the lease. This ties in with the suggestion shared at the convention of requiring Credit Card account from tenant to be charged for incidental expenses during and after tenancy.

Unconventional? Yes

Makes tons of sense.

Also, I have listened to Dave Ramsey caution callers to not give their account info to bill collectors as they will charge more than was agreed to.....so, it would seem that getting money from tenant that owes you and then dispute your method would shift the burden of making a case to tenant. --72.172.xxx.xx




Would this be legal? (by WMH [NC]) Posted on: Jul 6, 2018 8:16 AM
Message:

On the Buildium website it says this - and in NC, this is NOT true:

"Security deposit checks are not extra rent…so don’t treat them as such. These deposits need to be returned to your departing tenant, even if they’re behind on rent, assuming that there’s no damage to the unit."

A security deposit CAN be applied unpaid rent at the end of a tenancy, at least in NC. Why does Buildium say this, I wonder? --50.82.xxx.xx




Would this be legal? (by BRAD 20,000 [IN]) Posted on: Jul 6, 2018 9:57 AM
Message:

NE,

He who holds the gold controls the deal.

Editing my lease now.

It already says any fees or charges owed become RENT.

Usually an unintended draft results in bounced checks by the resident. Even our folks with good jobs do not have any extra money in their accounts.

BRAD --68.50.xxx.xxx




Would this be legal? (by Paulio [PA]) Posted on: Jul 6, 2018 10:08 AM
Message:

I do this as much as I can. All the judge is going to do is determine how much he owes you and how much you owe him and then award the difference to the correct party. --50.32.xxx.x




Would this be legal? (by Laura [MD]) Posted on: Jul 6, 2018 10:10 AM
Message:

My fear is if it goes to court and even if you win, you will 'poison' yourself in the eyes of a judge, since it is borderline at best. I think I want judges to always view me a clearly on the side of right. I believe I have benefited in court because I come prepared and always clearly on the side of right. --108.51.xxx.xxx




Would this be legal? (by Mike45 [NV]) Posted on: Jul 6, 2018 10:38 AM
Message:

Technically, you cannot legally apply the overpayment towards the damages. Technically, you would have to garnish against the funds you are holding. It is a "two hats" situation, you are holding the extra rent payment as a debtor of the T, and you are seeking to grab that money as a creditor of the T.

I had to do this once, we were holding a ton of money for a client in our trust account, and that same client owed us a ton of money. We garnished against ourselves.

--71.38.xx.xxx




Would this be legal? (by rentON [PA]) Posted on: Jul 6, 2018 10:39 AM
Message:

No, it does not sound legal. But it's only illegal if you get caught. --67.165.xx.xx




Would this be legal? (by S i d [MO]) Posted on: Jul 6, 2018 2:11 PM
Message:

I don't think it's a question of legality, unless a law or court decision addresses it. So far, no one has cited a statute saying you can't do it, so my way of thinking is if the law is silent then the act is permitted.

Amend your lease to say that TENANT authorizes LANDLORD to use any method of collecting payment during and subsequent to the lease for rent, damages, and charges owed, have your attorney review it, and if he/she has no qualms then go forth and conquer. --68.188.xx.xxx




Would this be legal? (by cjo'h [CT]) Posted on: Jul 6, 2018 2:29 PM
Message:

NE,If they owe you,I wouldn't worry too much about it being legal or not.......charlie......................... --174.199.x.xxx




Would this be legal? (by NC INVEST [NC]) Posted on: Jul 6, 2018 3:33 PM
Message:

I can't see how any court would be ok with you keeping the funds. As for adding it to the lease you can put anything in your lease but that doesn't make it enforceable. --71.75.xx.xx




Would this be legal? (by Ed [PA]) Posted on: Jul 6, 2018 4:38 PM
Message:

I don't believe it would sit well with magistrate or police and I would think you could be charged with Theft by Deception. --72.95.xxx.xx




Would this be legal? (by Don [PA]) Posted on: Jul 6, 2018 9:57 PM
Message:

Very simple. I would hold the money, all of it. If the tenant sues I would admit that I owed it to him but counterclaim for the damage. An alternative would be to offer the tenant the difference between the amount you got and what he owes for damage, if he signs a settlement agreement and release. --69.244.xx.xx




Would this be legal? (by WMH [NC]) Posted on: Jul 7, 2018 7:20 AM
Message:

Had a tenant's rent check bounce once back in the days the banks mailed you back the bad check. I kept the check in my files. Months later tenant moved out owing rent and damages. I called the issuing bank, the funds were there to cover the check, I ran and cashed it. Tenant screamed but the memo didn't say anything about RENT, they owed me that money and more, and they wrote the bad check in the first place. --50.82.xxx.xx





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