OK. I need some help here. I have a collection agency trying to collect for a lease that I broke while in college. I sent a validation letter and they sent validation back to me. It included my original lease agreement and an itemized statement of all the charges. Although, the collection agency added a 33% collection fee. Also, I initialed all of the pages on the lease agreement using the initials BT when my initials are BM. But I did sign the correct name. They are trying to collect for $1919 and recently sent me a settlement letter for 50% of balance before I sent this validation. I am willing to settle for $1k. Also, it is still within statue of limitations as the apartment shows as being rented in April of 2001. I stopped paying rent in January of 2001. Any suggestions or ideas?
Are you saying the contract sent to you as validation was or was not actually signed and initialed by you? Is there a specific termination clause in the lease, specifying the amount due if terminated, and does the CA's amount match? Can the lessor show they actively tried to rent the apartment to mitigate their damages, such as by placing ads? When was the apartment next occupied? Does your state law place restrictions on the amount that can be collected on a broken lease? Does the contract specifically allow for the fees added by the CA? Does the amount being collected include amounts chargeable to security deposits, and is there an itemization of such charges?
There is a termination clause in the lease stating that up to 35% can be added for collection if turned over to CA. Not sure if they can show or really tried to lease the apartment after I moved out. I left in 12/00 and the apartment was occupied in the middle of 04/01 according to their records. Not sure if my state law allows restrictions on amount that can be collected after lease is broken. I am in GA and can look that information up. The itemized statement does include amounts that were charged to security deposit which was forfeited because of breach of the lease.
I have found the following. Let me know what you think and what should be my next course of action... Lease states the following, but does not have a clause providing for payment of Tenant's attorney fees. ALthough, seems like collection fees would be different from attorney fees unless I am wrong... "Tenant does agree to be responsible for all costs associated with any legal action and collection fees of 35% may be added to all accounts." Code that applies to above statement... 44-7-2. (c) A provision for the payment by the tenant of the attorney's fees of the landlord upon the breach of a rental agreement by the tenant, which provision is contained in a contract, lease, license agreement, or similar agreement, oral or written, for the use or rental of real property as a dwelling place shall be void unless the provision also provides for the payment by the landlord of the attorney's fees of the tenant upon the breach of the rental agreement by the landlord. ------------------------------------------------------------------------------------ Lease states that following about deposit, but it seems illegal according to law... "$200.00 of deposit shall be a non-refundable redecorating fee." Lease also states the following "If Tenant does not fulfill the entire term of this lease, Tenant agrees to forfeit deposit as liquidated damages for our rerental expenses even if we are able to immediately rerent the Apartment for the same or more rent and even if there are no other damages. It is hereby agreed that Landlord's damages for reletting the Apartment may be difficult to ascertain and that the deposit constitutes a reasonable liquidation thereof and is intended not as a penalty, but as liquidated damages." Code that applies to above statements... 44-7-34. (a) Except as otherwise provided in this article, within one month after the termination of the residential lease or the surrender and acceptance of the premises, whichever occurs last, a landlord shall return to the tenant the full security deposit which was deposited with the landlord by the tenant. No security deposit shall be retained to cover ordinary wear and tear which occurred as a result of the use of the premises for the purposes for which the premises were intended, provided that there was no negligence, carelessness, accident, or abuse of the premises by the tenant or members of his household or their invitees or guests... ----------------------------------------------------------------------------------- Now below is an excerpt from itemized statement, but it just does not seem right. I can not make any sense of charges after final balance. All the charges and payments applied take charges back to original balance and then adds the 33% collection fee. I also do not understand how deposit forfeit is a $200 charge and then $200 payment. No idea what check #3655 is either balance - 2000 (unpaid rent, repairs, fines, etc) depost forfeit ..................... 200(charge) ........... 2200 echo "deposit to repairs ...... 200(payment) ........ 2000 non ref fee ........................ -200(charge) .......... 1800 check #3655 ..................... -200(payment) ........ 2000 check #3655 ...................... 200(payment) ........ 1800 check #3655 ..................... -200(payment) ........ 2000 collection fee ...................... 660(charge) ........... 2660
The statement starts with a balance due for unpaid rent, etc, but does not indicate what the deposit was, or whether it has been applied against any of the balance. It also implies repairs are included in the balance, but does not say how much of the balance is repairs. Does your state law require an accounting of charges for repairs to the tenant? As you noted, it does not account for the "check". It does indicate the deposit will be considered "liquidated damages" for the costs of re-renting. Normally this works both ways, the landlord does not specifically account for those amounts due to re-renting, but that and no more is what he gets for those damages due to lease termination. You need an accounting of the amounts included in the initial 2000 balance, as well as the charges added to it, as well as what damages were repaired, since normal wear and tear is not your responsibility.
