Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
If you have prepaid the last month's rent and you have already paid for August and will be out by the end of the month, then I would opine that you can include the last month's prepaid as part of the buyout money. And the security deposit can be used, but only if the landlord agrees as it is strictly for damages, late fees, cleaning, and delinquent rent. So if you vacate and there is $1000 in damages that have to be repaired, then if the landlord let you use the security deposit for the buyout, he has no money he is holding to pay for damages.
So it is kind of unlikely he will agree to allow you to use the security deposit..
So based on your statement, the landlord would owe the security deposit if there are no damages regardless of the termination letter agreement?
Correct...no damages, late fees unpaid, cleaning costs, or delinquent rent... Then he would have to refund the entire deposit within 14 days of you surrendering possession to the landlord. This is under AZ law, Arizona Revised Statutes (Annotated) § 33-1321.