How to voidable lease
Hello
My tenant did not pay the balance of move-in costs by the due date after the contract execution. Several unsuccessful attempts have been made to request payments and have received multiple excuses (could not find the checkbook or could not send electronic payment). The tenants have not moved in.
At this point I just want to void this contract and move on. How do I go about voiding the contract? When can I offer the rental to the next applicant?
Thank you.
#1 All Forums Contributor
- Investor
- Virginia
@Zoe Smith
The lease is probably already voided since they never fulfilled the initial obligation
Send them a letter noting it’s voided - may have to return funds you received (see what lease says) and move on to next one
Quote from @Zoe Smith:
Use whatever communication methods you know will work. For example, if you've successfully communicate with them by text message, send them a text. As long as you have something in writing, you are typically covered.
"Dear Tenant,
Our agreement was that you would meet all the requirements and pay the balance owed no later than May 25th. It is now May 30th and you have not paid the balance owed and are not responding to my communication. I hereby notify you that the agreement is terminated and you forfeit all funds deposited."
That's it. Then block their number, email, etc. If they try to reach out, ignore them. The only way they can come after you is if they sue in court, at which point they would have to justify why they failed to abide by the agreement or communicate with you.
In the future, I recommend you have a plan for this up front. My lease says they agree to pay all funds, set up utility accounts, and meet all other requirements no later than [DATE]. If they fail to meet those requirements within 72 hours of the deadline, I terminate the agreement and they forfeit any and all funds deposited with me up to that point.
Thank you, Nathan and Chris. I did some research online, sent out the lease termination notice, and have returned the initial deposited money. He is actually an executive so I didn’t think could run into this kinda thing. I was in communications with him that he needs to send past due funds by yesterday. He disregarded my requests and the deadline. I took this as a red flags. I just didn’t think he can be a responsible and respectful tenant.
I will be sure to collect all funds prior to executing the contract.