What Does the Court Do with the Money Placed in Rent Escrow?


If you get into a situation where the landlord will not make the necessary repairs to your rental unit and you have to file with the local courts to do rent escrow, you will start to send your rent payments over to that account. This may go on for one month or longer depending on the situation. Placing the rent payments into this account shows the courts that you are willing and able to make those payments, but doesn’t give them to the landlord since they are not upholding their part of the lease.


Once the court has a chance to review all of the evidence that is presented by you and the landlord, they will then make a determination about what to do with the rent escrow account. Some of the choices they can go with include:


# Terminate the lease and not have you pay any of the fees or have the consequences of doing this.

# Order that the rent escrow is paid out, either to the tenant or the landlord depending on how the case went.

# Ordering that the tenant will continue to make their rent payments to that account until the landlord is able to get the repairs done.

# Order that the rent is lowered and either paid over to the landlord or placed into the escrow account.

# Order that the rent escrow is paid out to the contractor so they can make the necessary repairs to the property.

# Refer the account to either a state or local agency to take on more investigation into the problem depending on what it is.
# Order that the rent escrow is paid out to the mortgage company so the property is not placed into foreclosure during this period.

# Order that the money in the account is paid out to some other creditor related to the issue.


It will often depend on the situation at hand and what the local court things should happen that determine where the money will go when the whole process is done.


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