NJ. Tenants had a break-up. Main breadwinner moved out.

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NJ. Tenants had a break-up. Main breadwinner moved out.

Monica Horn
Member since 2022 · 4 posts · 0 votes

New landlord here, due to inheriting my parents home.  So I'm pretty "green" in all of this.  Pls be kind.

Have a 1 yr lease (drawn up by realtor) that is set to end Nov 1st.  Unmarried male and female are on the lease, jointly.  Female is the higher earner, making more than twice the male.  Seemed like the perfect tenants.  They break-up one month ago. She moves out.   Female told me then (verbally), that she is fully aware of her "financial obligation to the lease and will make sure full amount is paid until lease is up".    Welp, that worked for the first month after she moved out.  Got separate checks from each for half the rent.   Apparently the breakup got more nasty or the female spoke to someone who changed her mind as to her "financial obligation to the lease".  Now she is refusing to pay her half.  I did receive half of the rent this month from the male tenant, on time.  But I'm not sure the male can afford the full rent with just his income.  He also has 2 kids from previous relationship.  

At midnight tonight,  the rent due June 1st will be 5 days late.   Lease states:  " Each tenant is individually responsible for the entire rental payment.  Any arrangement for contribution or payments between Tenants does not affect or bind the Landlord.  A charge of $50 will be assessed for each rental payment received after the 10th of the month in which it is due.  Each charge will be paid as Additional Rent with the monthly payment.  Time for monthly payment is material and of the essence which means that if the Tenant does not pay rent fully by the 20th of the month, the Tenant will be in breach of this contract and subjects to termination of the lease."[=-

I know it's early yet, but I'd like to know what my plan of action should be IF my suspicions are correct and the female is withholding her half of the rent in order to force me to start eviction against her former partner (the male).  She has an excellent financial record and a very good job so I feel that she has the most to lose if full rent continues to go unpaid, so I don't know why she would risk this (maybe as a means of getting back at him?) but, who knows?

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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
4y

For this very reason, we require any unrelated tenants to each fully qualify for a rental. ie, each person on the lease would need to meet the income requirements. For married couples we don't require this but for unmarried couples or room mate situations we do. We learned this from experience.

Each of your tenants is responsible for the full amount of the rent, not half of it, unless that's how you wrote the lease.

File a pay or quit notice the very day the rent is delinquent. Be sure to adhere to your state/local laws exactly. You do realize this is going to result in an eviction, right? And make sure your two parties know that they will each be evicted. Just because one of them moved out doesn't change things.

Filing a pay/quit notice sometimes magically improves the financial situation of the delinquent tenants.

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  • Joe Martella
    Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    4y

    To still hold her liable.  She signed the lease as well.  Just because she moved out doesn’t mean her obligation stops.  I would send her and him a notice reminding them of the rent due in full.  If the rent isn’t fully paid late fees will accrue and both individuals will be party to an eviction suit.  I would also tell them that toy would plan to hold them accountable for back rent owed.  

    Depending on what county you are in, you still have a waiting period from the pandemic. 

    2Reply
  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    Consider them as a single entity, even if that entity consists of multiple persons. If the rents not paid, you take appropriate actions. You have (likely) a single agreement to service.

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    If she has a good job and financial standing, she should not want a big black mark on her credit. If/When you send her this notice @Joe Martella mentioned, send it certified to her work address as well as the address she moved to. She owes half of the rent until the lease is up.

    1Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    4y

    For this very reason, we require any unrelated tenants to each fully qualify for a rental. ie, each person on the lease would need to meet the income requirements. For married couples we don't require this but for unmarried couples or room mate situations we do. We learned this from experience.

    Each of your tenants is responsible for the full amount of the rent, not half of it, unless that's how you wrote the lease.

    File a pay or quit notice the very day the rent is delinquent. Be sure to adhere to your state/local laws exactly. You do realize this is going to result in an eviction, right? And make sure your two parties know that they will each be evicted. Just because one of them moved out doesn't change things.

    Filing a pay/quit notice sometimes magically improves the financial situation of the delinquent tenants.

    3Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @John Teachout:

    Filing a pay/quit notice sometimes magically improves the financial situation of the delinquent tenants.


     Funny, huh?

    1Reply
  • David Lee Hall, III
    Rental Property Investor · Pittsburgh, PA · Member since 2019 · 530 posts · 511 votes
    4y
    Quote from @Bruce Woodruff:
    Quote from @John Teachout:

    Filing a pay/quit notice sometimes magically improves the financial situation of the delinquent tenants.


     Funny, huh?

    Yup. Had that 3 months ago. Money magically showed up plus late fees and last 2 months came early!
    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Tenants take advantage of landlords. Until a landlord gets bit a couple times and wises up......

    1Reply
  • Monica Horn
    OP
    Member since 2022 · 4 posts · 0 votes
    4y

    Thanks to all for taking the time to reply. 

    Going forward, this is very good information:  "we require any unrelated tenants to each fully qualify for a rental. ie, each person on the lease would need to meet the income requirements. For married couples we don't require this but for unmarried couples or room mate situations we do. We learned this from experience."   My previous realtor did not mention this as an option.  I will be using a different realtor next time and planned to discuss ways to prevent this situation again. I will mention your strategy, @John Teachout

    Yes, @Bruce Woodruff , I will "wise up". As I mentioned in my OP, I am admittedly very inexperienced in this.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Monica Horn:

    New landlord here, due to inheriting my parents home.  So I'm pretty "green" in all of this.  Pls be kind.

    Have a 1 yr lease (drawn up by realtor) that is set to end Nov 1st.  Unmarried male and female are on the lease, jointly.  Female is the higher earner, making more than twice the male.  Seemed like the perfect tenants.  They break-up one month ago. She moves out.   Female told me then (verbally), that she is fully aware of her "financial obligation to the lease and will make sure full amount is paid until lease is up".    Welp, that worked for the first month after she moved out.  Got separate checks from each for half the rent.   Apparently the breakup got more nasty or the female spoke to someone who changed her mind as to her "financial obligation to the lease".  Now she is refusing to pay her half.  I did receive half of the rent this month from the male tenant, on time.  But I'm not sure the male can afford the full rent with just his income.  He also has 2 kids from previous relationship.  

    At midnight tonight,  the rent due June 1st will be 5 days late.   Lease states:  " Each tenant is individually responsible for the entire rental payment.  Any arrangement for contribution or payments between Tenants does not affect or bind the Landlord.  A charge of $50 will be assessed for each rental payment received after the 10th of the month in which it is due.  Each charge will be paid as Additional Rent with the monthly payment.  Time for monthly payment is material and of the essence which means that if the Tenant does not pay rent fully by the 20th of the month, the Tenant will be in breach of this contract and subjects to termination of the lease."[=-

    I know it's early yet, but I'd like to know what my plan of action should be IF my suspicions are correct and the female is withholding her half of the rent in order to force me to start eviction against her former partner (the male).  She has an excellent financial record and a very good job so I feel that she has the most to lose if full rent continues to go unpaid, so I don't know why she would risk this (maybe as a means of getting back at him?) but, who knows?


    It's called "joint and several liability" and means every tenant is 100% responsible for the payment of rent and other terms.

    On the other hand, you know she's not going to continue paying rent for a place she doesn't live in. I would talk to the guy and tell him he needs to cut his losses and move out. At the same time, I would remind her that she is responsible for everything and unpaid balances may result in Small Claims and/or collections.

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    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Quote from @Monica Horn:

    Yes, @Bruce Woodruff , I will "wise up". As I mentioned in my OP, I am admittedly very inexperienced in this.


     That wasn't aimed at you...we've all been burnt, that's how you learn! :-)

    1Reply
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