My 23 year old daughter (call her Ann) signed a month to month lease to rent a room in a house. The owner's daughter (call her Jen) told my daughter that she smokes weed every once in a while. Initially, my daughter didn't understand the consequences of illegal drugs in the house (hers or not) and said she was OK with it and gave Jen a check for $250 security, $241.80 for rent for the last 15 days in Dec. and $12 for a credit report. Jen told her the security deposit was non-refundable if she didn't move in.
Later Ann learned the risk she was taking with drugs in the house and on the morning she was scheduled to move in, she called Jen and told her she would not be moving in because she was not comfortable with the drug situation. Jen had a fit and was very angry, and claimed she would not return any money. Ann went to Jen's house (the rental house) and rang the doorbell several time, but nobody answered despite the fact that both cars were in the drive. Ann dropped an envelope into the mailslot containing the keys and a note that she would not be moving in. Her boyfriend was along as a witness.
Ann has not received a copy of the signed lease. Jen told Ann that the security deposit was non-refundable if she didn't move in and Ann thinks the lease stated this also.
So the question is: what steps should we be taking?
Here's our plan so far.
1. Send letter to owner (Jen's dad) asking for
A. Copy of lease
B. Refund of all but $12 for the credit report.
2. He will probably respond that nothing is refundable.
3. Hopefully he will send a copy of the lease. I think he is required to send it within 21 days, but there's no penalty if he doesn't. But if he doesn't, won't that be an act of "bad-faith"? Can Ann subpoena the lease or does she need to have a small claims filed?
4. If he does send a copy of the lease and it does have a 'non-refundable deposit' clause, I think that is illegal in CA. Does this then invalidate the entire lease? Or just weaken it? or what?
5. Send demand letter stating that non-refundable deposits are illegal.
6. Get no response or no refund - go to small claims court. Sue for rent and double (or triple) security deposit for bad faith? Will judge give back the rent part since the lease was broken? The weed issue is going to be her word against hers. I'm hoping that suing for double or triple the deposit will encourage the owner to give a refund before the case is heard.
What is Ann's liability. I suppose he could counter-sue for lost rent? Would he get it?
Any advice will be appreciated!
Thanks
Dennis

