No STR license and monthly tenant left days into lease

No STR license and monthly tenant left days into lease

Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

Curious what you would do. I had a tenant who was transferred days after arrival and left. They paid their first months rent. I am not licensed as a STR and do not collect transient tax. If you were to get a new tenant during the month they paid for what would you do? Legally I am not supposed to rent short term and charging rent for the same space twice is also not legal. Just wondering what others have done in this situation. A usual tenant in this situation would have been with me years and would have given notice of more than 1 day.

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Member since 2025 · 45 posts · 47 votes
11mo

If you are sure they have left early, clean the unit, return deposits, etc. and advertise it as available at the end of the month. Legally it still may be rented by the tenant until proper key turnover. Show it as available next month. You can have a tenant ready to move in the day your current lease expires. No problem with STR no loss of rents while finding a new tenant.

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  • Member since 2025 · 45 posts · 47 votes
    11mo

    If you are sure they have left early, clean the unit, return deposits, etc. and advertise it as available at the end of the month. Legally it still may be rented by the tenant until proper key turnover. Show it as available next month. You can have a tenant ready to move in the day your current lease expires. No problem with STR no loss of rents while finding a new tenant.

  • Colleen F.Pro Member
    OP
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11mo

    @Isadore Swartz I know they left early they turned over the keys when they were transferred so I had possession.   I was just curious if others would return rent or not if you found a new tenant sooner. It's a MTR so the tenants they come any time of month.

    • Member since 2025 · 45 posts · 47 votes
      11mo
      Quote from @Colleen F.:

      @Isadore Swartz I know they left early they turned over the keys when they were transferred so I had possession.   I was just curious if others would return rent or not if you found a new tenant sooner. It's a MTR so the tenants they come any time of month.

      Return of the unused rent is up to you. Personally if the move was predicated by a life change, I am not greedy and would consider it.   Either way, don't advertise that you did it, it would encourage others to find "life changes" .
  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    11mo

    Yes you should start looking for a new tenant immediately. If you rent it sooner than a month you should return the remaining rent to the tenant that left along with their security deposit. You are supposed to try to find a tenant asap. BLNT. 

  • Colleen F.Pro Member
    OP
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11mo

    @Bill B. I am aware of the duty to mitigate but the rub is you are basically unintentionally doing a STR. so wrong either way.

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    11mo

    No you're not. You didn't list it as an STR and you were paid for a monthly rate . As long as you didn't put the "monthly rate" at something someone might pay for a week to hide the fact it was really an STR.

    Imagine a market with a 12 month minimum and how many times tenants leave before that year passes. Now you’ve violated their laws just as much.  If it was listed as a LTR at a LTR rate. Unless the government wants to force the tenant to stay and pay you’ve done nothing wrong. 

    The good news is you think you’re going to have a new new tenant within the remaining 3 weeks so your property is in a very strong market. And if you don’t, or the “best tenant” can’t move in until next month you’ll be paid anyway. Just get their security deposit back within the required time so they can’t sue for damages. All in all a good “problem”not have m

  • Dr · VA · Member since 2025 · 154 posts · 34 votes
    11mo

    If you rent out your property for 14 days or fewer in a year and don't rent it again, you don't need to report the income on your tax return. However, if you rent it out for more than 14 days—especially as a short-term rental (STR)—and don't have another job, you may be considered to be operating a rental business for tax purposes, even without a business license, and must report the income and possibly qualify for business-related deductions.

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