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[CA] What should I do when a tenant moves in without paying the full deposit and rent but later vacates and returns the keys?

Benjamin
Benjamin

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Under California law, once you gave them the keys, they were legally in possession. That means you cannot simply collect the keys or lock them out without formal notice and process.

You would normally need to serve a 3-Day Notice to Pay Rent or Quit to preserve eviction rights.

However, if they voluntarily moved out and returned keys, that can qualify as surrender of possession under CA Civ Code §1951.3 — but only if it was clearly voluntary.

At this point, there is no eviction, because they voluntarily vacated and returned keys.

Keep everything factual and polite:

“You vacated and returned possession of the property on [date]. I’ll send you the final move-out and security deposit accounting within 21 days as required by CA Civ Code §1950.5.”

That’s it. Don’t engage emotionally.

Under CA Civ Code §1951.3, once a tenant returns the keys and you accept possession, the tenancy ends by mutual surrender — not eviction.

You must send a written security deposit accounting within 21 calendar days after 11/6/25 (so by 11/27/25).

Include:

  • Rent owed for November up to move-out

  • Any unpaid balance

  • Cleaning or damage costs (receipts required if over $125)

  • Refund or balance due

Do not accept rent or revive the lease unless you sign a new agreement.

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Security Deposit Return Letter

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Well, this is a bit of a tricky one. What is supposed to happen if a tenant can't pay the full security deposit and rent but has given some of it partially? And they have already moved in? The lease agreement started on 11/1/25 but due to their schedule they couldn't meet until 11/2/25 to sign everything. They had already paid $900 at that time.

The lease said full deposit and first month's rent was due at signing. But the tenant said he couldn't get the rest of the money yet and that they should probably start moving their stuff out that night on the 5th. So yesterday I went there to give them the 1500 in cash back and said that we'd likely have to keep some money from the initial $900 they sent for the days that they stayed there.

I gave them the keys and they said they could get the rest. But on 11/5/25 they could only pay 1500 more. They also had been saying they were waiting for their Zelle payment to go through but that the bank was holding it. Then I told them we need to collect the rest of the $2600 tomorrow by noon 11/6/25 or needed to collect the keys.

Lexi

Lexi, Chatbot

I understand that dealing with security deposits and rent can be quite stressful. Can you tell me how much of the security deposit and rent has been paid so far?

$900 + $1500 = $2400 which is less than half.

Lexi

Lexi, Chatbot

Have you communicated with the tenant about their payment situation, and if so, what was their response?

They had said they could get it but they just kept delaying it.

Benjamin

Benjamin

Hey there! I'm Benjamin, an attorney with many years of experience.

I understand you're dealing with a situation where your tenant can't pay the full security deposit and rent but has given you some of it partially. Is that correct? Could you share more about any discussions you've had with the tenant or any actions you've taken so far? How long has this late payment situation been ongoing?

Benjamin

Benjamin

What state are you in?

California.

Benjamin

Benjamin

Got it, thanks for sharing that. Here’s your situation summarized:

  • Lease start date: 11/1/25

  • Lease signed: 11/2/25

  • Keys delivered: 11/2/25 (possession legally began)

  • Payments received:

    • $900 on/before 11/2

    • $1,500 on 11/5

    • Total paid: $2,400

  • $2,600 still outstanding

  • Tenant promised payment by 11/6 at noon

Right they moved their stuff out yesterday and gave me back the keys. But now he was saying we should have formally evicted them and that we've been unprofessional.

Benjamin

Benjamin

He was correct, you should have formally evicted them and your statement, “or I needed to collect the keys,” can be used against you.

Used against me how? They did move out and have the keys. What should I do now? To be safe, should I return the full deposit then?

Benjamin

Benjamin

Under California law, once you gave them the keys, they were legally in possession. That means you cannot simply collect the keys or lock them out without formal notice and process.

You would normally need to serve a 3-Day Notice to Pay Rent or Quit to preserve eviction rights.

However, if they voluntarily moved out and returned keys, that can qualify as surrender of possession under CA Civ Code §1951.3 — but only if it was clearly voluntary.

At this point, there is no eviction, because they voluntarily vacated and returned keys.

Keep everything factual and polite:

“You vacated and returned possession of the property on [date]. I’ll send you the final move-out and security deposit accounting within 21 days as required by CA Civ Code §1950.5.”

That’s it. Don’t engage emotionally.

Under CA Civ Code §1951.3, once a tenant returns the keys and you accept possession, the tenancy ends by mutual surrender — not eviction.

You must send a written security deposit accounting within 21 calendar days after 11/6/25 (so by 11/27/25).

Include:

  • Rent owed for November up to move-out

  • Any unpaid balance

  • Cleaning or damage costs (receipts required if over $125)

  • Refund or balance due

Do not accept rent or revive the lease unless you sign a new agreement.

Benjamin

Benjamin

If you accepted voluntary surrender, what cause would you have to keep any of the deposit? Did they damage the property?

They had stayed there at least three nights and there seemed to be fresh scratches on the floor of one of the bedrooms. I should also state that I had said I'll need to collect the keys from them before he said that statement “so we might start moving the stuff out tonight.”

Benjamin

Benjamin

Since they stayed for a few nights and there are scratches, you can deduct prorated rent for those days and reasonable repair costs.

Document everything carefully.

Regarding your statement about collecting the keys, since they voluntarily moved out and returned them, it is likely not an issue — though they may try to claim they were forced out. Keep communication factual and professional.

OK thank you for this information. I will need to think through what makes most sense with the remaining $900 I still have.

Now, he is coming back to me and apologizing for his text that he sent. And he is saying he shouldn't have sent those things. Should I talk to him on the phone or just do everything over text and/or email with him?

Benjamin

Benjamin

Do everything in writing. That ensures you are protected and there is a record. Good luck.

Did that solve your issue? Please let me know if you have any further questions.

You can also prepare a simple one-page note for your records:

Date: ___, 2025
To: [Tenant Name(s)]
Property: [Address]

Acknowledgment of Surrender of Premises

Tenant vacated the premises and returned possession, including all keys, on [Date].
Landlord accepted possession and will complete final inspection and accounting per California Civil Code §1950.5.

[Landlord Signature]

Ok thank you. That's it for now.

Benjamin

Benjamin

679 satisfied customers

Benjamin
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