Reject lease renewal if one party drops from the lease?

Reject lease renewal if one party drops from the lease?

Charlotte, NC · Member since 2024 · 10 posts · 3 votes

Hi everyone, I'm new to all this, so go easy on me! :)

I lease out a mobile home to a man, his girlfriend and son.  The two adults are on the lease.  The woman is generally more responsible, more consistent income (I know that most of the rest often comes from her), ambitious and does most of what it takes to keep the place looking nice.  If she were not there, I am confident that the unit would be ill-kept, and an eye sore.  There is a possibility that she won't be in the picture when the lease expires in a few months.  If she *is* still to be on the lease, I'll be happy to renew it.  If not ... while the man can likely "qualify" alone on his income at his current job (he's had 4 or 5 jobs this past year or so), I don't really want him there without her.  I know I can get a better tenant and at a higher rent (I had discounted his rent due to his situation at the time).  Do I have to have a reason for not giving him a renewal option?  There are no protected class considerations in this case.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
2y
In most states you do not have to provide any reason for a non-renewal.  In fact, you are better off not saying anything.

Note:  Technically everyone could be in a protected class.  Protected class means gender, race, familial status, color, religion, national origin, or disability.  So, if you discriminate against single white males, you have discriminated against a protected class.
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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    2y
    In most states you do not have to provide any reason for a non-renewal.  In fact, you are better off not saying anything.

    Note:  Technically everyone could be in a protected class.  Protected class means gender, race, familial status, color, religion, national origin, or disability.  So, if you discriminate against single white males, you have discriminated against a protected class.
  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    Instead of a renewal could you send out a whole new lease with some uodates and with a space for 3 signatures. Put something about how all 3 are separately liable for the entire rent and that the lease isn’t valid without all 3 signatures. 

  • Charlotte, NC · Member since 2024 · 10 posts · 3 votes
    2y
    Quote from @Greg Scott:
    In most states you do not have to provide any reason for a non-renewal.  In fact, you are better off not saying anything.

    Note:  Technically everyone could be in a protected class.  Protected class means gender, race, familial status, color, religion, national origin, or disability.  So, if you discriminate against single white males, you have discriminated against a protected class.
    Greg, thank you for your very quick response! Yes, you're right on the protected class comment.  Having spent several decades in management in a large company, I know that situations can often be quickly assumed (correctly or incorrectly) to be for such cause, so there is more effort required to justify one's action.  I was just trying to avoid anyone having to address that in responding to my question.

    I'll have to see if I can find NC laws on non-renewal for no given reason.  Thanks again!
  • Charlotte, NC · Member since 2024 · 10 posts · 3 votes
    2y

    That's interesting!  I generally do a whole new lease, anyway, as there is almost always some new thing to add or change in the lease.  The current lease has both adults on it, and does make it clear that each is fully liable for the rent (though, in practice, they often give some part separately).  Adding "not valid without all parties" is something I'll think about. Thank you!

  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    2y

    @Craig James Conrad No, not really. You're not under any obligation to have a reason to not give a renewal option. If the lease expires, the lease expires. 

    To offset things, you could even raise the rent for the new occupants when the lease expires. When in doubt, it's best to go with your gut especially when evaluating existing and/or prospective tenants. 

    Hope that helps! 

  • Charlotte, NC · Member since 2024 · 10 posts · 3 votes
    2y

    Thank you to Greg, Bill & Rachel for the good advice!

  • Investor · Hopedale, MA · Member since 2021 · 321 posts · 213 votes
    2y

    i would ask about their plans as far as whether or not they were hoping to renew, if both parties would be on the new lease, etc., then let them know that you're asking in advance because there is a chance you will NOT be able to renew them as you may need to vacate and renovate/sell for personal reasons. it seems most tenants are more understanding of not having the option to renew, when you're just going to be emptying the place to sell it. obviously that's not always the case. i would also consult with a RE attorney in your state to make sure that you navigate this convo in the right way. i know in some states the wording would be incredibly important.

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