When renting is a 2 month deposit consideded a security deposit?

[Drperson]

We are renting a commercial unit. They said they want to leave in 5 days.
I say the 2 months deposit is to give us time to get someone else. She says normally people just give it back, sort of like a security deposit.
I think if we get someone else before the 2 months we can refund a potion of the 2 months deposit. otherwise we kep all of it.
What is your opinion?

 

[bob saunders]

If they have paid their rent, and aren't using the security deposit as rent ( i.e. , not paying rent for the last two months) then you need to give them the security deposit plus interest back, if there are no damage issues. You are actually, by law, supposed to deposit this money in a bank acct just for that purpose.

 

[Northern Coast Diver]

We are renting a commercial unit. They said they want to leave in 5 days.
I say the 2 months deposit is to give us time to get someone else. She says normally people just give it back, sort of like a security deposit.
I think if we get someone else before the 2 months we can refund a potion of the 2 months deposit. otherwise we kep all of it.
What is your opinion?

If they are not breaking the terms of the rental contract and the premises are returned in good shape, return the deposit. If not, professional advise might be your best bet.

 

[josh2203]

If they are not breaking the terms of the rental contract and the premises are returned in good shape, return the deposit. If not, professional advise might be your best bet.

Exactly what the above quoted said.

They said they want to leave in 5 days.
I say the 2 months deposit is to give us time to get someone else. She says normally people just give it back, sort of like a security deposit.

As far as I have understood, this is definitely not what the deposit is for. It has nothing to do with you finding or not finding a new tenant. This may or may not be covered in the contract terms, as in, how much time they need to give you before they can stop paying the rent without violating the contract.... The deposit is only for unpaid rent and damages...

 

[Joseph NY2STI]

These sorts of things should be covered in the rental contract to avoid a pissing match at the end. If it's not in the contract now it's obviously too late, but you should make a point of it with the next one. Is there a clause in the contract regarding non-renewal notice or early termination? I have 1 residential and 1 commercial tenant. I require 2 months notice for my residential rental and 6 months for my commercial rental. This gives me adequate time to find a new tenant. Likewise, I offer the same consideration if I'm not going to renew. This gives the tenant adequate time to find a new place. Everybody leaves happy. If there is nothing in the contract that covers your scenario, then do whatever lets you sleep at night.

 

[ctrob]

IF they signed a lease for a specific amount of time, and are leaving early, then there are "damages" in the form of unpaid funds. And they forfeit the deposit.

Whenever I lease something, I include the full amount due on the lease. Ex: 1 year lease for $2,000/month - I put the $24,000 amount due on the lease. If they leave early, I keep any deposit funds. They agreed to pay a certain amount and then broke the contract. That's damages.

 

[Drperson]

thanks for all the great advise it helps alot