Q: If a tenant terminates a lease early, do they forfeit the security deposit?
The tenant signed a two year lease at a discount on the monthly rent. After 15 months, they are moving out because they want to buy a house.
A:
No and yes. No, it isn't an automatic forfeit - Virginia law generally disapproves forfeiture.
Yes, because the security deposit is to protect the landlord from damages and unpaid rent, and you can keep the deposit for that.
As a landlord, you have a duty to 'mitigate' or reduce your losses. You have to try to re-rent the property as if the tenant waited until the end of the lease and left - simply an ordinary vacancy. The catch is that the tenant owes any damages they left (and don't be nit-picky as judges don't like that) plus rent up to the time you get a new tenant in (the law doesn't allow you to double dip on rent) or the end of the term on the lease. The tenant also is responsible for the costs of re-renting - the advertising usually.
When you get a new tenant, add up the stuff I've mentioned and subtract the deposit from that - the tenant owes the difference.
And don't forget to give the tenant a move-out summary of charges within 45 days of them leaving.
A: Generally in Virginia, the terms of an early termination of the lease is provided in the lease agreement. The security deposit is given by the tenant to the landlord to protect the landlord against property damage at the end of the lease term and must be accounted for within 30 days after the possession of the property is returned by the tenant to the landlord. The security deposit is generally not forfeited.
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