Tenant in poor health

3 Replies

I have an interesting situation here. 

The lease expires this month, and my PM recommends a month to month lease. PM said the tenant is not in good health, and may need to move to a care home any time now, if she moves to a care home due to poor health, the lease is not enforceable anyway. 

The last time I had month to month lease, the tenant moved out during Thanksgiving, and took me 5 month to rent the place, so I'd rather not to do a month to month lease, but the same time there is no point to sign the contract if I can't enforce it. 

What would you do if you were in this situation?

Why couldn't you enforce the lease if the tenant has to move into a care home? Is that a State law where you are? We put a clause in our lease that says the lease must be fulfilled no matter what happens in the life situation of the person renting. There is a buy out fee (usually equal to about 2 months rent) if the tenant needs to get out of the lease early. We also allow them to transfer to another unit we manage (for a fee equal to 1 month rent.)

I do understand that enforcing the lease does not mean collecting the money owed to you so that's always a problem.

That being siad we often do MTM leases after the first year but we always charge about $75/month more than the year lease price for that privilege. A lot of people are willing to pay that amount if they don't know what is going to happen in their future or they need a few more months before they move.

Lastly, if it took you 5 months to rent your property there are probably some things you can fix in your leasing strategy. Even in winter 5 months is a long time to rent a property. Looking on how you can sure up that part of your business can give you more confidence in situations like this.

I use to work for a company in VA and they were able to enforce their leases. If you are worried you can either non-renew and put a new tenant in their or do a one year lease with 2 months break lease fee. This way you are covered.

Originally posted by @Elizabeth Colegrove:

I use to work for a company in VA and they were able to enforce their leases. If you are worried you can either non-renew and put a new tenant in their or do a one year lease with 2 months break lease fee. This way you are covered.

 A 2 month break lease fee seems to be the way to go. I will ask the PM why she said non-enforceable. 

Thanks @phillip syrios, @Elizabeth Colegrove

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