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  1. #1
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    Default Old Roommate Is Suing Me Over Security Deposit In New Jersey

    I live in a 2 bedroom apartment in NJ (right outside NYC) with my gf. Rent is ridiculously expensive here, so we always choose to live with a third person to help with bills and rent money. Our latest roommate moved in and asked not to be on the lease because the apartment complex, which has 65 units, does a credit and background check. She asked to be left off the lease because her credit was poor. We accomodated that request on condition that she give us a security deposit of one month's rent, her share of which was $600. There was no written lease or agreement between myself, my gf or the roommate. We verbally agreed that the primary purpose of the deposit was to protect my gf and I, who were listed as tenants on the lease with management, from the new roommate moving out or not paying rent. Obviously since she wasn't on the lease, she was free to move in or out at any time, while my gf and I would still be responsible for rent. So the one month deposit was taken to pay the rent in the event she moved out w/o giving us time to find a roommate. We all agreed verbally that if the new roommate didnt give us 30 days notice before moving out, she forfeitted her deposit.

    After living there for 10 months (our lease was 12) the roommate gave us written notice that she was moving out. She satisfied the 30 day requirement by notifying us on the 30th of May that she'd be moving out June 30th. However, she demanded that her security deposit be applied towards her last month's rent. I said that this was unacceptable, and she said she would be staying in the apartment regardless. She refused to give me any money for rent for the month of June.

    On June 1, I gave her the option of staying and paying June's rent, and when she moved out on June 30th, I'd refund her deposit. Or in the alternative, I said she could simply leave ASAP and forfeit the deposit, because she'd be violating our "30 days notice agreement." She chose neither, and instead moved out June 3rd, and then sent me a letter demanding her security deposit be returned. I answered with an explanation of why I would not return the full amount unless I found someone to replace her. I offered her half as a settlement. This offer was not responded to, so I assumed she declined.

    Now, I got a letter from NJ special civil part small claims today with a copy of her complaint. The complaint demands:

    1. return of the deposit ($600)
    2. double damages for untimely return (in NJ landlords have 30 days, so another $600)
    3. she alleges that a 2 bedroom apartment in my building is not "zoned for multiple family dwelling" and demands $1800 in punitive damages because this was an illegal tenancy.
    4. the complaint top sheet from the courts threatens that I will be removed from my apartment (which I no longer even live in, LOL) if I lose


    Anyone who knows Landlord/tenant law, PLEASE, go to town here. My main questions are:

    A. How am I a landlord and subject to landlord laws? We had no landlord tenant relationship! She was simply a roommate, paying rent through me because she wasn't on the lease. I had only a tenancy interest in the property, I obviously don't own it or hold myself out to be the owner.

    B. There is NO municipal ordinance or building code (that I am aware of at least) that makes a 2 bedroom apartment unsuitable for 3 people. I have called the city, they confirm this. So does the building management. Even if it was an illegal tenancy, wouldnt the building have to be involved? Again, I'm not the owner or the landlord. All I did was find a roommate on Craigslist (something I'll NEVER do again).

    PLEASE HELP!!

  2. #2
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    Default Re: Old roommate suing me for $3,000!! NJ

    one more question...

    C. lets assume that there is a landlord/tenant relationship. Isn't our "30 days' notice" agreement, (the existence of which she acknowledged in writing during her move out notice), totally valid and enforceable? In NJ, a tenant can not assume a deposit is to be used as the last month's rent. They must do 2 things to apply deposits as rent: 1.) Request in writing where their deposit money is at and 2.) wait 30 days to allow the landlord to comply with that request. Then and ONLY then, can a deposit be used as rent. My roommate never did either. Here is a link to NJ law that explains this: http://www.lsnjlaw.org/english/place...ndep/index.cfm

    In NJ, a tenant must give written 30 days' notice before terminating a month to month lease. She moved out less than a week after giving notice. Doesn't that, PLUS, the violation of our oral agreement entitle me to keep the deposit as rent? Or should I have given her the money back, and then sued her in small claims court for the rent? I don't know why the law would require a landlord to jump through hoops to keep money that is due them, as thats the very purpose of the deposit to begin with. But does anyone know??

    This is maybe the most FRUSTRATING thing that has ever happened to me. This girl bails on me with 7 days notice, I rightfully keep her deposit to compensate for my loss, and now she's suing me for THREE GRAND?? My God what a world!

  3. #3
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    Default Re: Old roommate suing me for $3,000!! NJ

    You became a LL the money you agreed to rent the place to her. A lease that is not written is a month to month tenancy, which means that ALL she owed you was that last month's rent, and if there was no damage, you all were even (using the $600 to pay for the last month's rent). When you don't return the security deposit you should have sent her a letter explaining that it was used for the rent that was owed.

  4. #4
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    Default Re: Old roommate suing me for $3,000!! NJ

    Quote Quoting moburkes
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    You became a LL the money you agreed to rent the place to her. A lease that is not written is a month to month tenancy, which means that ALL she owed you was that last month's rent, and if there was no damage, you all were even (using the $600 to pay for the last month's rent). When you don't return the security deposit you should have sent her a letter explaining that it was used for the rent that was owed.
    I did send her a letter explaining why I kept it; I posted that above. Also, am I correct to assume that she is responsible for the last month's rent, regardless of whether she stayed there or not?

    One thing I have thought about is this: I may have done things backwards. In other words, while I may have been right in theory and legally, the proper procedure would have been to return the money, then sue for the rent she refused to pay. I did it backwards and now she's sueing me

    Any thoughts?

  5. #5
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    Default Re: Old roommate suing me for $3,000!! NJ

    Above you stated that you responded to HER letter; you never stated that you sent her a letter in the first place, as a LL is required to do by law. Have you even looked at the LL/Tenant laws in your state?

  6. #6
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    Default Re: Old roommate suing me for $3,000!! NJ

    Quote Quoting moburkes
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    Above you stated that you responded to HER letter; you never stated that you sent her a letter in the first place, as a LL is required to do by law. Have you even looked at the LL/Tenant laws in your state?
    It wasnt necessary; she sent me a demand letter before I even had the chance to send her a letter. So my response (in letter form, ok?) simply included the reason why I wasnt returning the funds.

    Yes, I have reviewed the laws very carefully. Have you read all my posts so far? The law in NJ is that you must give 30 days notice when terminating a month to month lease. I believe I've stated this twice now. Legally, she's responsible for that rent money. My question is one more of procedure at this point, not the law; Can you keep a security deposit to recoup unpaid rents? Or is the proper procedure to return the deposit, and then sue the tenant?

    Thats all I really need to know at this point--I have researched the law very thoroughly, that is the only thing I can't find.

  7. #7
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    Default Re: Old roommate suing me for $3,000!! NJ

    Her moving out a week after giving 30 days notice means nothing. She owes for the full 30 days. If you didn't give a statement about the deposit's bank account, then you lose your rights. When she sent the letter, that was her written notice.

  8. #8
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    Default Re: Old roommate suing me for $3,000!! NJ

    Quote Quoting moburkes
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    If you didn't give a statement about the deposit's bank account, then you lose your rights. When she sent the letter, that was her written notice.
    You are still not reading this correctly. I know she gave notice, if you read correctly, you'll see she gave notice way before she even sent the letter. Notice is not the dispute here. The point is you cant give notice that you're moving out in 30 days, then move out in 7 days, and expect to get your deposit back--while in the meantime paying no rent. Her notice was effective the beginning of June. That means shes responsible for rent until the end of June, regardless of when she moves out. The question is was it OK for me to keep her deposit? OR should I have returned it then sued her for unpaid rent?

    In NJ, if a tenant wishes to use a deposit as rent, they must REQUEST where money has been kept, and then allow the LL 30 days to furnish the information. She never did that, so procedurally, she lost her rights to use the deposit as rent. That leaves a black and white case of unpaid rent being paid with a security deposit.


    Procedureally, did I do anything wrong??

  9. #9
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    Default Re: Old roommate suing me for $3,000!! NJ

    Yes, she is responsible for the entire month. If you didn't deposit the deposit correctly and then send her a letter then YOU lost your rights to expect her to give her notice in writing. As long as she sent the letter (although it was after the fact) to ask you to use the money for the back rent (for June), then what she did was legal.

    I think you're going to lose this case on technicalities since you didn't originally follow the law when you thought you weren't a LL.

  10. #10
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    Default Re: Old roommate suing me for $3,000!! NJ

    Quote Quoting moburkes
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    Yes, she is responsible for the entire month. If you didn't deposit the deposit correctly and then send her a letter then YOU lost your rights to expect her to give her notice in writing. As long as she sent the letter (although it was after the fact) to ask you to use the money for the back rent (for June), then what she did was legal.

    I think you're going to lose this case on technicalities since you didn't originally follow the law when you thought you weren't a LL.
    Again, simple misinterpretation here. NOt trying to be rude, just clear. Her letter was not to inquire about the status of the security deposit--

    First there was an email giving notice of her move-out date. This was 7 days before she left, and the very end of May. Then after she moved out, I received another letter, as a pdf email attachment, offering me a settlement--her promise not to sue for the return of her security deposit. I gladly declined, and then responded with a letter explaining why she was not entitled to the return of any of it.

    And here's a HUGE part I think you are also misinterpreting. How is it automatically a LL/Tenant relationship just because you receive rent from someone?? My first course of action when she said she'd be staying w/o paying rent was to call the court and figure out how to evict her. Guess what the court said? "You can't evict her because you are NOT the landlord!" They said only the building managment could file eviction paperwork to force her out. Therefore, if no landlord/tenant relationship exists, how is it that I am subject to ANY landlord regulations?? This is straight from the horses mouth of the court. If I can't evict her because I'm "not the landlord," how can she sue me as a landlord?? To me, theres a huge gap here. It's not enough that I accept rent from her to establish a LL/tenant relationship. Not in the eyes of the court. This is kind of what I was thinking earlier when I first posted--hence the username

    And just for clarification, I spoke to 6 different lawyers today. Two of them said no LL/tenant relationship exists or ever did between me and the 3rd roommate; the others said that by accepting rent & a deposit, a LL/tenant relationship was created. So I dont find it odd that you have your own opinion on the subject as well.

    In either case, I think I can go to court and make a strong argument for the fact that I don't owe her $3,000. Every lawyer I talked to agreed that the allegation about this being an "illegal occupancy" was ludicrous and unfounded. The only real issue at court will be the security deposit. And alot of my liability there will hinge on whether or not a LL/tenant relationship existed--if not, she has no legal leg to stand on. If the court finds one did exist, I still have a good reason for withholding it--even if I didn't meet all the technical requirements. I dont see how a roommate collecting a security deposit in a sublet arrangement can be expected to meet all the landlord requirements as far as treatment of deposits; Based on that, i think I have a good shot at owing nothing. At the very worst, she may get the deposit back, but the $3k is pissing in the wind.

    I welcome any more thoughts on this

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