What if the Tenant Breaks the Lease or Does Not Move in After Paying a Deposit?
A tenant does not automatically forfeit the deposit for breaking a lease, but the deposit can be used to cover costs for which the tenant is liable. If a tenant must break a lease, doing everything possible to help the landlord re-rent the premises will reduce the tenant’s liability. The landlord may have grounds to keep some or all of a deposit given to take a rental unit off the market, based on losses the landlord suffered. If a tenant has entered into a lease with a landlord and paid a security deposit or prepaid rent and does not move into the unit, the tenant is entitled to a full refund if the tenant finds a replacement tenant satisfactory to the landlord who moves in by the date the lease was to begin. On the other hand, if the landlord secures the replacement tenant, the landlord may deduct from the security deposit or rent prepayment any amount agreed to in the lease as a lease cancellation fee OR actual expenses incurred by the landlord, including a reasonable amount for the
