Austin, TX · Member since 2013 · 3 posts · 0 votes
I purchased a rental property 3 years ago. Now, the tenant has moved out. He said he paid first and last month's rent when he initially moved in and is demanding the last month rent back since he doubled paid.
When I bought the property, there was no mention that the last month's was already collected. That amount was never adjusted for during closing.
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
11y
I'd start by asking for proof that first and last month's rent was actually paid. If he can prove it, then either you or he has a case against the seller. I'll let the legal eagles say which one of you has to eat it and then go after the seller. I suspect it might by you.
This is like closing the barn door after the horses are gone, but for the other readers who want to prevent this from happing to them, get a signed estoppel from the tenant prior to closing. The estoppel is a form where the tenant confirms the terms of their lease. If this tenant had signed an estoppel saying that they paid a security deposit only, then they'd have no case to raise a claim for last month's rent now.
Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
11y
I'd start by asking for proof that first and last month's rent was actually paid. If he can prove it, then either you or he has a case against the seller. I'll let the legal eagles say which one of you has to eat it and then go after the seller. I suspect it might by you.
This is like closing the barn door after the horses are gone, but for the other readers who want to prevent this from happing to them, get a signed estoppel from the tenant prior to closing. The estoppel is a form where the tenant confirms the terms of their lease. If this tenant had signed an estoppel saying that they paid a security deposit only, then they'd have no case to raise a claim for last month's rent now.
Specialist · Novato, CA · Member since 2012 · 190 posts · 57 votes
11y
@Ray Yeung I agree with @Brian Burke . I had a similar situation with a tenant trying to take a water cooler ( Big one on outside of house) Said she paid $500.00 for it. I paid her because I was the quickest and cheapest way to get this crazy out.
Rental Property Investor · Anderson, SC · Member since 2013 · 55 posts · 17 votes
11y
How much is the rent? If it's not too much you could explain to him you never heard anything about nor received the last month's rent, but offer to pay him half of it back (or even the full amount if you want).
I've offered this to tenants in similar situations and they usually will agree and are happy to get something back. It could prevent a future headache/legal trouble, which from my own experience, is not worth keeping the rent over.
If your a dealing with a crazy tenant and the $$$ isn't very much... I would probably pay it and send them down the road. Sometimes a little money can solve a potential ugly problems...
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
If they can show they paid it, you owe it to them. It wasn't their job to make sure you did the purchase/letters of estoppel/assignment of lease properly.
Austin, TX · Member since 2013 · 3 posts · 0 votes
11y
I do realize that this was my mistake since I wasn't aware of the letter of estoppel. I will consider this an expensive learning experience.
I've checked my offer contract from when I purchased the property and the following clause was specifically added: "At closing, seller will assign all leases,transfer all security deposits and rents and provide operable keys to buyer."
So, it appears that the transfer of rents wasn't done properly. What is my next step here? Should I contact the previous owner directly, or contact a lawyer, or the real estate agent who I worked with?