rent overlap - who keeps the money?

Question

the tenant that's leaving paid until june 1 and moved out already. still has the keys and checks on the property regularly.

new tenant is moving in on 5/21. there is a 9 day overlap where i am double dipping.

i asked the current tenant for the keys and she said "will give it back on the 31st". i can easily change the locks/keys, but dont want it to become a big deal.

Do i owe her back the 9 days rent?

Jon Holdman · Answer

The old tenant isn't turning over possession until June 30. I think you're going to have serious trouble if you move someone else in there before then. Most states don't allow double rent. If she had already moved out and handed over the keys, then you would need to refund her the days after the new tenant moves in. Since she's refusing to turn over possession until the 30th (by refusing to give you the keys) she's telling you the place is still hers. If you move someone else in or change the locks and she comes by and discovers it (which seems like she may do) I would expect to hear from here. I'd predict things won't go well for you if she takes you to court for renting out the property she had possession of.

If you're going to move someone in, I would offer her money for at least those nine days in exchange for the keys.

Elizabeth Colegrove · Answer

@George P.

That's why I charge a break lease fee. If they break their lease early they owe me money. that way it doesn't matter how quickly I get someone in there. If it is a fee, it doesn't count as rent. The rule is no "double dipping". Therefore by having them pay to break the lease its not double dipping but I am still paid for my trouble!

Patrick L. · Answer

There is actually 10 days of overlap.  You cannot lease the same property to two people during the same time period.  You need to get your current tenant to agree to surrender the property by the time the new one moves in otherwise you cannot let them move in until the current lease expires

Yes you will have to refund the money back for the days the property is rented to the new tenant, you can't double dip....and that's only if the tenant agrees to it.

George P. · Answer

i dont think i could have charged her a lease break fee because she was going to pay for June had we not found tenants.

Elizabeth  Colegrove , have you had a case where they left and kept paying the rent? you didn't charge that fee, correct?

i think @Ben Leybovich  had a case like this, but he charge the rent and double dipped..

Ben Leybovich · Answer

No - you can not double dip.  She paid - the place is hers whether she is there or not...you can give her the money back, or she can put in writhing that she is done and doesn't want the money.

Bill S. · Answer

Pretty much in the vein of others, can't double dip on rent. I feel your pain about having to rerent before lease end. Add an early termination fee (ETF) clause (think cell phone contract) to your lease and everyone is happy. Get paid when tenants move early.

Jon Holdman · Answer

I'd tell her you have a new tenant as of May 21 and if she gives you the keys before that date you will refund the rent for the end of the month.  And if she keeps the keys until the end of the month, no refund and the tenant won't move in until June 1.

According to my attorney, the tenant handing you the keys constitutes legal transfer of possession.  Your state laws may vary.

George P. · Answer

yeah, you guys are right. i just figured i'd ask. if we hadn't rented it this fast, she would have had to pay for June as well. she begged us to find a tenant that will be paying for June, thus letting her keep the money.

we did find tenants quickly, but she seems to be interested in "when are the new tenants moving in" more than just "wow, that's great, thanks".

rent overlap - who keeps the money?

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