Braselton, GA · Member since 2013 · 243 posts · 57 votes
I'll try to make this as short as I can.
I had a tenant sign a 1 year lease, but in the lease it requires a 60 day notification. the lease was to end October 31 of this year. 6 days prior to that she said that I may be getting a call from a prospective landlord. I told her about the clause in the lease and that she would be forfeiting her deposit etc. The prospective landlord calls me, and I tell her about the 60 day clause that my tenant was about to break etc. She decide.s to rent to her anyway. she moved out on the 1st of November, but the carpet was destroyed among other things in the property. She also owes money for the electric bill that I kept in my name. This was a verbal agreement, because she wasn't able to qualify for electricity there due to owing the company. Which was a red flag I know.
I'm obviously keeping the deposit. which is $650. The carpet that needs to be replaced is $1084, and the electric bill is $200.
Should I eat the extra costs and let it go, being thankful she moved out? Or, should I make a claim somewhere and try to recoup some of the funds.
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
11y
If the tenant doesn't even have the funds/credit to get electricity in her own name what makes you think that any judgement you pursue will ever have any shot at being collected?
I don't bother because here between filing fees, process server, attorney fees (here in FL business cannot represent itself in court, you must hire an attorney if your property is in your business name). I'd be out close to $700-800 for a worthless judgement
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
11y
If the tenant doesn't even have the funds/credit to get electricity in her own name what makes you think that any judgement you pursue will ever have any shot at being collected?
I don't bother because here between filing fees, process server, attorney fees (here in FL business cannot represent itself in court, you must hire an attorney if your property is in your business name). I'd be out close to $700-800 for a worthless judgement
Investor · Sammamish, WA · Member since 2013 · 94 posts · 84 votes
11y
At minimum, you need to send a Security Deposit Settlement Form detailing and demanding that the money owed you is paid within 10 days. After the 10 days have passed, send all the paperwork you have on the former tenant to a collections agency. The collections agency will keep approximately half of what they collect, but something is better than nothing.
Additionally, you could file a small claims suit in district court before sending it to a collections agency so that you have a judgement showing the amount owed, which can help the collections agency garnish wages if the tenant has a job. It is possible for you to also garnish wages, but I've found the process to be too time consuming, so I've always just passed it on to a collections agency.
Investor · Smyrna, GA · Member since 2014 · 96 posts · 72 votes
11y
Justen, you don't need to get fancy with the letter-here is a something that will satisfy the letter of the law. Now, I'm curious to see if you have any claim at all! First thing is the "60 day notice". I'm not sure that that's enforceable. You have a written one year lease with an end date. I would think that supersedes anything about giving notice. How did you specify it in the lease? I sometimes put in that in order to renew, I want 30 days notice, but written leases are self expiring. Any one care to educate me on this? Second, the electric bill-what does it say about utilities in the lease? If not specified, you're on the hook. That only leaves the carpet-is it totally destroyed? Was it new when she moved in? She could claim that it was 50% worn when she moved in, and thus only owes $542. That leaves a refund for her! Now, as far as a suit for damages. In Georgia, it is very cheap and easy to file, and I always do when I have damages. (with 2 important caveats!) It costs about $125 to file and serve. They never usually show up, so a default judgment is usually granted, and my claims for damages are usually never contested. That is, in a default judgment, you get exactly what you asked for, with court costs, no paperwork needed. And I was once paid by a tenant who needed to get the judgment off his file when buying a house. It also serves as a red flag warning to other landlords as well. When I win, I will file a garnishment with the employer. Does that work? Absolutely! I actually had one guy quit his job after the second garnishment but I still came out ahead, but another I received full payment from the employer, who didn't answer in time! I mentioned two caveats. First, I always have my paperwork in order. Pictures, copies of letters, leases, etc. 2nd, and most important, I always have work history and full information. That's what makes the garnishment work . If someone is on the job for 5, 6 years, likely they won't quit, and sometimes even the threat of an employer garnishment serves to get payment. So, yes, for all those reasons I always will go after delinquencies. Now, as to your case, the amount of money you may get is almost a wash-as far as I can see, she only owes you a couple of hundred at best, (plus the court costs of $125) and you may even owe her!
Dear Tenant,
This letter is in regards to the security deposit of $650 that was placed on our rental contract dated X/X/X. The rental home was located at 70 E. Main Street in Anytown.
During my move out inspection, I discovered some items that I must deduct from the security deposit. . I have charged to the security deposit, as allowed by Georgia law, rents owed due to insufficient notice. I have attached your letter to vacate the premises as proof that the property was left before the lease was officially over. There were a few other damages in the home. I needed to replace the carpet...... The total cost for this was $1084. Because you only lived there for one year and it was in good condition when you moved in (pictures enclosed, before and after) I must make you 100% responsible for the new paint job. The electric bill outstanding is $200, which I will charge you. I am deducting $1284.00 from the $650.00 to cover the damages and insufficient rent payment. Amount due is $634. Please remit that promptly, or a suit may be filed to collect the balance, which will seriously affect your credit. If you should have any questions, please feel free to contact me at 555-555-1234.
Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
11y
I agree with Enrique Jevons, but I will elaborate a little more.
When a tenant breaks a lease, and moves out without giving me the proper notice, I continue to bill them for rent that is due.
She moves out on November 1st. This begins a new rental month ( if her rent is due on the first of every month), which we should always have rents due on the 1st of every month even if it means pro-rating a tenants rent to get it there.
If her Lease Agreements states that she must give you a 60 day notice (hopefully this is in accordance with your state law) this means she owes you for November and December.
Send her a bill for November's rent along with a letter stating that you understand she has moved and therefore will owe for December's rent as well.
If she turned over the keys it is a simple money judgment that you seek with the courts.
If she hasn't turned over the keys you need to evict her, even though you know she has moved. Legally she hasn't moved until she lets you know in writing and by returning the keys.
At any rate, no matter how you do it, it entails receiving a Judgment. As Enrique says, the Judgment is then turned over to the Collection Agency to pursue if this tenant doesn't pay. The Collection Agency will garnish her wages, or income taxes, and will hound her until she pays.
This is a business of evictions and going to court to get our money.
This is a business of evictions, damages, fixing up our homes over and over again.
If we don't go into this business understanding this, and don't go court to fight for what legally and rightfully is ours, then we deserve what we get. And that would be nothing. Why be in this business if you fluff off the wrongs that are done to us, instead of fighting for the rights that we work so hard for?
This is a business! This is what it entails! And tenants are no different than we are. WE are expected to pay our bills and to take responsibility. When we go after tenants who us money, it's not to be mean, it's because they owe us money! They signed a contract with us, just as we sign a contract to rent a car, or buy a house. So this all falls under Training your Tenants. When they see there is consequences they know not to do it again!
If landlords all stick together and do what we need to do, we might stand a chance to eliminate some of the injustices that we face. But we must stand together!
I just noticed that the tenant signed a one years lease. In that case she is responsible for the full term of the lease, or try to find another tenant for your that you approve of.
a business certainly can represent itself. You can represent yourself as a sole proprietor, an officer or director of an S corp, or as the manager of an LLC. Someone gave you incorrect information.
Braselton, GA · Member since 2013 · 243 posts · 57 votes
11y
She left the keys on the counter top.
how many nails, tacks, and other "hanging" devices are allowed before it goes beyond "normal wear and tear"?
"The term and conditions of this agreement will begin on: 201and end on:,201. Upon expiration of one year, this agreement may at the Landlords discretion be terminated with proper notice or continue on a month to month basis. Tenant agrees to give the Landlord at least 60 days written notice before vacating the premises.If Tenant vacates without giving 60 days notice, Tenant will be liable for, but not limited to; (1) the balance of the rent for month in which they vacated the premises (2) all outstanding rents due. Tenant further acknowledges that all claims to the Security Deposit paid to Landlord will be forfeited if proper notice to Landlord is not provided."
if she paid the last months rent and the 60 day clause is not enforceable then you have no claim for lost rent. Always contact your tenant at least 30 days before the end of the lease and find out their intentions. If they refuse to sign a new lease then I start marketing the property immediately. Your state laws will determine what rights you may or may not have.
ok that is what the lease says. What does the law say? Any lease or part of a lease in contradiction to state law is not enforceable. Also, judges, at their discretion, can simply ignore any clause they don't like or agree with (this doesn't make it right...but it affects the outcome of legal proceedings).
I am not trying to drag this out but..... your lease states "at the expiration of 1 year". So, at the expiration of one year ...and if they are on a month to month are they THEN required to give 60 days notice OR...are they required to give 60 days notice BEFORE the end of the lease? It clearly states they go on a month to month basis which they did not do. Everything should be written clearly to avoid confusion. I believe your lease could be interpreted two ways. One way..they might owe two months rent. Another way..because they didn't choose to go on a month to month tenancy, they do not. Just because an attorney wrote or looked over the lease does not mean it is a good lease, is enforceable under state law, etc. Last: if you are claiming they owe two months rent it seems that you MUST make an honest effort to relet the premises immediately. If you find a tenant in 3 days, you cannot collect for two months because you will not have had 2 months lost rent. I think you have major problems with the lease as it is written. You might have problems with enforcing certain elements especially if they are contrary to state law. First thing you need to do is get the place ready and find a tenant AND have a clearly defined enforceable lease for that new tenant.
Braselton, GA · Member since 2013 · 243 posts · 57 votes
11y
Its concerning that the lease may have issues, as I downloaded it from the files on this website.... With some very slight modifications, clause 5 not being one of them.......
Involved In Real Estate · Winston-Salem, NC · Member since 2013 · 277 posts · 188 votes
11y
I'd just chalk it up to lesson learned and move on. Here's something that might help you in the future:
My lease requires a 30 day notice. About 75 days before the lease is set to expire, I send the tenant a lease renewal form. It gives them the available lease terms with the applicable lease rates. The form also gives them the option of letting me know they intend to vacate at the end of the term. Sending it at about 75 days out gives them ~45 days to think about it before they resign or give notice.
This proactive approach works well for me. I've only had one tenant not give enough notice (he gave 27 days notice), but I didn't hold it against him because he paid the rent on time for 2 years, and the last year of tenancy he elected to go month-to-month at a $105/month premium. I was not about to ding him for 3 days of rent.
Rental Property Investor · Trabuco Canyon, CA · Member since 2014 · 134 posts · 78 votes
11y
After you get a judgement against her you may find a credit reporting agency to report the money she owes you to her credit report. An eviction alone is not reported to the credit bureaus so running a Credit check is not going to show anything.
Its concerning that the lease may have issues, as I downloaded it from the files on this website.... With some very slight modifications, clause 5 not being one of them.......
Files provided here, along with ones you find from any other source, should be reviewed by an attorney in your area. Laws vary A LOT from state to state and even from city to city. And they change all the time. I also used the one here, along with one from Bill Bronchick and one from a local PM. I pulled together pieces from each, then spent $200 on an attorney to review it. He suggested a few additional items.
I had a tenant sign a 1 year lease, but in the lease it requires a 60 day notification. the lease was to end October 31 of this year. 6 days prior to that she said that I may be getting a call from a prospective landlord. I told her about the clause in the lease and that she would be forfeiting her deposit etc. The prospective landlord calls me, and I tell her about the 60 day clause that my tenant was about to break etc. She decide.s to rent to her anyway. she moved out on the 1st of November, but the carpet was destroyed among other things in the property. She also owes money for the electric bill that I kept in my name. This was a verbal agreement, because she wasn't able to qualify for electricity there due to owing the company. Which was a red flag I know.
I'm obviously keeping the deposit. which is $650. The carpet that needs to be replaced is $1084, and the electric bill is $200.
Should I eat the extra costs and let it go, being thankful she moved out? Or, should I make a claim somewhere and try to recoup some of the funds.
Thanks in advance.
I would not pursue them as it's going to cost you more in money and time than you'll get out of them. Next time do not rent to tenants that can't get electricity. If you are forced to, you're investing in the wrong property in the wrong neighborhood.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
11y
Originally posted by @John Thedford:
@Patrick L.
a business certainly can represent itself. You can represent yourself as a sole proprietor, an officer or director of an S corp, or as the manager of an LLC. Someone gave you incorrect information.
@John Thedford I think what @Patrick L. was referring to is that many states/courts do not allow companies/corporations to represent themselves in court. Since a corporation or LLC is its own legal entity, to allow a non-attorney (even a partner/owner in the company) to represent that entity in court would be akin to allowing the unauthorized practice of law by someone without a law degree. Hence the reason many states/courts require companies/corporations to be represented by an attorney in court (with the exception of some small claims cases).
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
11y
I filed an eviction last year operating as an S Corp. I'm aware that they only allow this in small claims cases. So far the courts have always allowed me to represent my S corp in all small claims cases.
Real Estate Broker · Louisville, KY · Member since 2014 · 121 posts · 91 votes
11y
Unfortunate lesson, but one you definitely won't make again...like some of the other posters stated follow your states laws and guidelines when it comes to the security deposit. Never put utilities in your name "for a tenant", and never have a "verbal agreement" the only agreement you should ever have is one that is in writing (approved of course by legal counsel) this helps protect a landlord and tenants. If law allows, I would get all of your documents in a file and you can submit tenant information to a collection agency, one that will only charge you out of collected funds i.e. whatever amount they collect they keep 40% and send you 60%. If you want one that I used in the past just message me.
Rental Property Investor · Houston, TX · Member since 2012 · 17 posts · 8 votes
11y
I know it's already happened and you unfortunately got burned by this bad tenant but the big "no-no" was to let her receive services under your name. It is in my lease agreements that I give my tenants 2 weeks to put the electric and gas in their name because it's going to be shut off. Plus her bad credit history should have been the biggest red flag: if she doesn't pay her bills, what makes you think she will pay you?
Unfortunate lesson, but one you definitely won't make again...like some of the other posters stated follow your states laws and guidelines when it comes to the security deposit. Never put utilities in your name "for a tenant", and never have a "verbal agreement" the only agreement you should ever have is one that is in writing (approved of course by legal counsel) this helps protect a landlord and tenants. If law allows, I would get all of your documents in a file and you can submit tenant information to a collection agency, one that will only charge you out of collected funds i.e. whatever amount they collect they keep 40% and send you 60%. If you want one that I used in the past just message me.
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CYA is always the best policy to have in business: always in writing and signed by both parties.
Braselton, GA · Member since 2013 · 243 posts · 57 votes
11y
This is further down in the lease.
"
Clause 32- Vacating Premises
Tenants must give a 60 day written notice by certified mail that tenant is moving. This notice must be sent in time for it to be received by the Landlord before the next rent due date and the 60 days start on that due date. Improper notice will result in forfeiture of tenant’s security deposit.
Braselton, GA · Member since 2013 · 243 posts · 57 votes
11y
I mailed out the letter certified, to the last known address, my triplex, and the post office hasn't forwarded it to whatever her current address is. What should I do?