Residential Property Management/Query
With reference to a rental lease for which I am renewing for the same tenant as prior year, but with a different lease in Florida, I have the following question:
1. Tenant paid a security deposit for year ending of which I am currently holding. Want to find out if I am able to use the current security deposit for the new lease (same amount) or do I need to write a check for tenant for refund and then let tenant write me a new check.
If I am able to use the same security deposit for the new lease what should I document and put in writing.
2. Also I spoke to my tenant and I would be overseas for the renewal period. Would not be able to visit the property till next year. My tenant has paid on time and claimed the property is in good condition during the current lease which is ending in a month. If I am unable to be at the property for an inspection for the new lease, is there anything I should put in writing to document no inspection of property was done and tenant claimed property was in good condition.
Question #1: You can use the same deposit to transfer. Normally when renewing a lease, if the only thing you're changing is to extend the term, you don't need a new lease. Instead you would just draft an amendment which extends the terms that need to be modified. If a new lease is necessary or preferable, then simply note in the new lease that the security deposit is being transferred from the previous lease dated ____.
Question #2: Yes, you should insert a clause that tenant acknowledges that the premises is in good, operable condition. However, I always recommend photos and a checklist, signed by the tenant, which is useful when it comes time for the tenant to move out, and handling of the security deposit refund.
Being an out of town owner, I would strongly advise hiring a local property manager to handle these functions for you. Best of luck.