Happiness clause for LTR -- Need Help ASAP

[Tori Wienke]

Hi BP community, 

I bought a 5/3 SFH in Denver-Metro area in December 2021. I renovated the basement to be a completely separate suite from the downstairs, with its own entrance (washer/dryer, bathroom, and kitchen). I rented the 2/1 to a nice married couple with a dog starting March 2022. Fast forward to October 2022, these tenants have so many complaints since living there. Some complaints were valid, some were not. This aside, 3 weeks ago, my tenant texted me a photo of under the carpet, looked like mold was growing on the wood tack strips. I immediately had a professional come out to test the air, and asked the tenants to move out of the room. After the mold was found out, i offered my tenants the "happiness clause" (since I've noticed they've had a lot of complaints since moving in), allowing them to move out free of charge early. The deadline was 60 days, December 31st.My tenants immediately let me know that they day they wanted to stay. They sent it to me in text, and I have it technically in writing. To add, the remediation has been completed and confirmed no mold is left in the unit and money off rent has been given.

Now, 3 weeks later, they are saying they want to move out by November 31st. With this said, I feel like since they initially denied my offer, it's no longer on the table. This is where I feel like this is sticky. I obviously don't want an unhappy tenant living underneath me, but they already rejected the offer. Any advice on how to proceed would be greatly appreciated. 

[Bjorn Ahlblad]

@Tori Wienke well if it were me I'd say fine. The objective is still the same, get them gone. All the best.

[Joel Case]

Let them go and be done with it. 

[Patricia Steiner]

So much for renting to nice married couples!  Because some of their complaints were valid - including the mold - I would agree to an early termination of the lease provided they leave the property in good condition with no personal items or trash left behind, and that they be out by (set a time; I've seen 3:00 to 5:00 p.m. used most often) on November 31st.  I would also let them know that you will be marketing the property for re-lease and that you will expect their cooperation with showings prior to their departure.  When they leave, do a walk of the property with them, take photos, and get them to sign a release that states they are voluntarily terminating their lease prior to lease end, that all personal property has been removed from the premises, and that there is no further obligation on either parties' part.  This eliminates any future claim regarding the mold and/or any damages they feel they are entitled to because they "HAD" to move.  "Nice" people do things that aren't so "nice" all the time so just watching your back...

And, congratulations - they will be gone!  Some victories come in disguise... 

[Wendy Man]

Sorry to hear about this situation.

did you mean Nov 30?  If you are writing this up with the tenants be sure to use the correct date.

[Ke Nan Wang]

In general, if anybody wants to out of my lease within reason, with enough notice, I'll work with them and let them out. In my lease, I have a two month rent early termination penalty clause. The clause releases the tenants from the lease if they pay the two month early cancellation penalty. Throughout my career, I had two occasions where the tenants actually paid the full cancellation fee, moved out and turn over the property clean, and got their security deposit back. In both cases, the tenants had good credit and good jobs, they had to cancel the lease because they happened to find the dream of their next house sooner than they expected. 

Most of my other cases with average tenants, if they can't afford the rent anymore and can't afford the early cancellation fee and they absolutely need to move out, I'll just let them move out and I keep their deposit. 

[Greg Weik]

Hi @Tori Wienke, what a frustrating situation.  I'm sorry to hear you've gone through this stress with these tenants. 

It sounds like you did everything right - legally and ethically. 

The rental market in our area is not great right now. If you let them leave without penalty on 11/30, you may well be sitting on an empty unit for over a month.  Just something to consider.  It sounds like you have no obligation to let them out at this point. 

@Patricia Steiner is right that in the event you let them walk, you need to have a detailed agreement signed off on by you and the tenants, indicating the tenants will vacate the property and relinquish all rights to the leased premises as of X day and X time.  Failure to vacate by X day and X time shall result in holdover rent being owed as well as an action for eviction being filed against the tenants.  Tenants shall be entitled to receipt of their full security deposit within X days of vacating the premises notwithstanding any charges, if applicable, related to damage to the premises or cleaning needed upon inspection and determination by landlord.  <-- something like that. 

In situations like this it is usually better to part ways and try again with new tenants. 

[Tori Wienke]

@Greg Weik - thank you for your feedback. I appreciate it :) I'll keep thinking about it

[Nathan Gesner]

Quote from @Tori Wienke:

You made the mistake of only giving them one option the first time. Tell them they can leave, but cannot change their minds. Get it in writing with their signature.

[Curtis Mears]

@Tori Wienke

Do you really want them as tenants? Personally, I would never renew their lease as they sound like difficult tenants (it maybe all their complaints were valid). I have had many tenants move out early. I tell them all the same, you are responsible for the lease upto a time I get a new tenant to sign a lease. It works well since I have 0 vacancy when it happens, and it is only slightly more work for me.

[Blake Johnson]

Quote from @Bjorn Ahlblad:

@Tori Wienke well if it were me I'd say fine. The objective is still the same, get them gone. All the best.

 Totally agree. Get rid of them. No need to throw principal at them... if they want out, let them fly. 

[Scott Allen]

Let them leave and find a new tenant that does not complain as much or at all. 

[Melanie Thomas]

In this scenario, I would let them leave. You certainly don't want to feel uncomfortable in your on home with someone upset with you downstairs. Sometimes its just not worth fighting over principle. Good luck with this!