What happens to deposit when tenant moves out early?

Hello all

I currently have tenants in my property for which I hold a security deposit to cover damages etc etc. The contract I have says that if they move out early they lose the deposit. However a friend of mine has said that providing they give at least a months notice and all the rent is up to date to the date they vacate I must return the deposit (providing there is no damage). She said that I cannot keep it as it is only to cover damages and if there is none then I must return it. But if they have signed the contract saying they would lose it am I entitled to keep it?

Thanks

Caroline

Hi Caroline

If they signed saying they loose it if they leave early, then so be it.

Usually they get it back, minus any unpaid bills,  i paid half a deposit back and kept rest until final bills came in, unlucky for me bills was more than i kept,  tenant never paid the missing amount.

I also had a tenant walk out ( no warning ) after 4 weeks of an 11 month contract,  kept deposit for bills but agent didnt give me a penny back from the money he made which was 1 month charge for 11 months, i should have received 10 months charge back.

Cheers

Rob

I think most tenants in Spain use the deposit as the last month's rent because there are so many dodgy landlords in Spain who screw tenants for their deposit.

 Caroline86:

I would need to see the rental contract that you signed. Please feel free to send it to us so we can take a look.

Best weekend,

Maria

Hi Maria,

Sorry I havent got back to you sooner but have been away this week. Unfortunately I only have a hard copy of the contract and do not have a scanner so I cannot send it to you. The contract is for 11 months, temporada and the tenant pays 600 a month. He paid 1 month as a deposit and this is what the contract says about that:

10. FIANZA:En este acto los arrendatarios entregan el arrendador la cantidad de  (1 mensualidad de renta) correspondientes al importe de la fianza preceptiva.

Si el inquilino desea finalizar el contrato temporano el fianza se perderá

Therefore my understanding is that if he moves out early he loses the deposit but if he stays till the end then I have 30 days to return it to him minus any deductions. However my friend says that I cannot hold onto his deposit if he moves out early, the rent is up to date and the property is ok. Surely if he agreed to this then that is ok?

Thanks

Caroline

P.S I have deleted the surnames for obvious reasons!