Owner Change Rental Property Sold; Transfer of Security Deposit Question

[Bussman24]

I'm a landlord in Central New Jersey and am currently renting out a Partially Furnished Single Family home to a couple in Middletown. They signed a 2-year lease and we are half way through the lease agreement. However, I just sold the house to a buyer who's going to keep it as a rental and agrees to honor the existing contract. So I get to sell the house, the buyer gets to own a new house, and the tenants don't have to leave; win/win/win.

Everything I have read states I must transfer the Security Deposit it to the new owner in full, however, my lease states the landlord can use the Security Deposit to recoup damages beyond normal wear and tear (specifically on furniture) and also to recoup lost wages on unpaid rent. The tenants paid partial rent in July and are now refusing to pay the rest knowing I can't really come after them unless it's in the courts... and 80% of judgements never get paid so I'm kinda screwed.

My question is this: because this rental agreement has personal property attached to it, do I have a case for refunding the Security Deposit to the tenants (minus lost rent and damages to furniture) and have them send it to the new Landlord? That way, if there's no damages and they are up to date on their rent, all they are doing is taking the check I send them and forwarding it to the new owner???

I don't want to send partial security deposit to the new owner, but I also don't want to be 'forced' to pay someone else's rent?? In all, they own me 1200 in rent and there is approximately 800 worth of furniture damage from their dogs. That's 2000 that I'd rather not be on the hook for...

Thanks all

 

[army judge]

If I were you, I'd let it go. Do you need the money that much? You just sold a house?

If you fritz with the security deposit, these kinds if people will squeal. Why not have the new owner evict them? If they screwed you, the new owner doesn't have a tenant, he's got a squatter.

You should review the security law, my friend.

 

[Bussman24]

If I were you, I'd let it go. Do you need the money that much? You just sold a house?

If you fritz with the security deposit, these kinds if people will squeal. Why not have the new owner evict them? If they screwed you, the new owner doesn't have a tenant, he's got a squatter.

You should review the security law, my friend.

You are absolutely right and I try to keep telling myself that... but it just burns me to see people manipulate and use other people like that. Total disregard for anybody else but themselves and their own well being. If I was making huge money, it'd be easier but I actually had to take out a small loan last month because I cannot afford MY rent AND theirs!! If closing gets pushed back another few weeks, and that 2000 grows to 5000.... that might be the nail in the coffin for me.

And people like this will continue to use people for their own needs until somebody stands up to them and puts them in their place... whether that's a lawsuit, a big black mark on their credit report, or seizing their possessions (these are the kind of people who don't pay their rent but have motorcycles, jet skis, huge TVs all over the house, scuba gear, etc.... basically, they seem to make a living off other people's money and hard work.

I want to let it go and take the high road.... but I also have major issues being taken advantage of....

I guess we'll see what happens...

 

[army judge]

If you retain the deposit in lieu of any unpaid rent, you open yourself up to a lawsuit.
There are many stipulations regarding that deposit.
The best thing to do is follow the law, not you anger.
Anger costs dearly.
I learned many years ago that I'd rather keep my money, than lose it in anger.
Here's your state's law regarding those pesky rental deposits:

http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/sdepsit_law.pdf

http://www.nolo.com/legal-encyclopedia/new-jersey-security-deposits-36223.html

http://www.lsnjlaw.org/Publications/Pages/Manuals/TenantsRights.pdf


When your building is sold
If your apartment building or rented house is sold, the law makes it clear that the new owner must get the tenants' security deposits, plus interest, from the old owner. The law plainly states that the new owner is responsible to each tenant for the full amount of the tenant's deposit, plus interest, whether or not the new owner actually got the deposits from the old owner. Cite: N.J.S.A. 46:8-20 and 21.


By the way, your dilemma illustrates one of about ten reasons that I sold the majority of my rental properties.
I gave one away to a long time tenant, an elderly, invalid, widow woman.
If there are no properties available for deadbeats to rent, they turn to CrapList and scam others by renting rooms.
Sadly, it's a vicious circle.

 

[Bussman24]

Well, that also creates an additional dilemma for me because my lease specifically says the Security Deposit can be used to cover any rental discrepancies throughout the life of the contract. So if they couldn't pay half the rent last month, contractually, I'm able to recover that half a months rent when they move out by retaining it from the Security Deposit. Anyway.... I'm just the victim of scumbag tenants. I was able to track down their previous landlord (which I should have done before hand) and he said the same thing... scum bag tenants that 3 months into their lease started not paying the rent.

Serenity now.... serenity now....

 

[army judge]

Well, that also creates an additional dilemma for me because my lease specifically says the Security Deposit can be used to cover any rental discrepancies throughout the life of the contract. So if they couldn't pay half the rent last month, contractually, I'm able to recover that half a months rent when they move out by retaining it from the Security Deposit. Anyway.... I'm just the victim of scumbag tenants. I was able to track down their previous landlord (which I should have done before hand) and he said the same thing... scum bag tenants that 3 months into their lease started not paying the rent.

Serenity now.... serenity now....

I agree. That's why I divested myself of that business. I am no interest in establishing a privately funded house by house project. There's no money to be made in that endeavor.
The government has stacked the deck against those that want to do well. That's why I decided to become ever vigilant over the three or four dollars profit I've managed to eke out over the years. LOL