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Deposit Withheld Rent Money Tenants
Depositing the withheld rent money in an escrow account is not required by law, but is a very good thing to do for three reasons.
First, rent withholding cases often wind up in court. The judge usually will require the tenant to pay the landlord some reduced rent based on the value of the rental unit with all of its defects. Judges rarely excuse payment of all rent. Depositing the withheld rent money in an escrow account assures that the tenant will have the money to pay any “reasonable rent” that the court orders. The tenant will have to pay the rent ordered by the court five days (or less) from the date of the court’s judgment.
Second, putting the withheld rent money in an escrow account proves to the court that the tenant didn’t withhold rent just to avoid paying rent. If there is a court hearing, the tenant should bring rental receipts or other evidence to show that he or she has been reliable in paying rent in the past.
Third, most legal aid organizations and lawyers will not represent a tenant who has not deposited the withheld rent money in an escrow account.
Sometimes, the tenant and the landlord will be able to agree on the amount of rent that is reasonable for the time when the rental unit needed repairs. if the tenant and the landlord can’t agree on a reasonable amount, the dispute will have to be decided in court, or resolved in an arbitration or mediation proceeding.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Tenants Guide to Depositing Withheld Rent Money is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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