Q and A with Prop West

Q) I had an applicant that signed a two year lease and paid his security deposit and 1st month's rent. A week before he was supposed to move in he called and said he had a change of mind and wanted all his money refunded. He said that because he was never given a key that the contract is void and he will sue if I don't refund his money. What are my rights?

A) Once that applicant signed the lease he became responsible for the two year regardless of whether or not you had given him a key to the unit or not. You need to send him a security refund itemization stating that he is responsible for the rent though the lease. No money needs to be returned to the tenant. Under the law, you do have an obligation to try to re-rent the unit as soon as possible to mitigate the tenant's losses. Once you get the unit rented again then the previous tenant will no longer be responsible for the rent.