Florida Tenant abandoned property/Moved out early/Lease

Florida Tenant abandoned property/Moved out early/Lease

Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes

I have a tenant that was always paying on time for nearly the past two years.  Last month they told me they were considering another place which was more appropriate for their family.  I said as long as you pay March's rent I can apply your security deposit to April's rent.  Since there are now damages to the property from their dog I have to deal with I feel that I should use the security deposit for damages instead of rent.  Does anybody know what recourse I have?  I know that I will only be able to get any rent from the original tenant until I get a new tenant in the property.  I hope to get someone in the property by April 15th.  Just as an FYI the monthly lease dates run from March 23- April 22, April 23- May 22, don't ask!  Oh and originally I had their parents guarantee the first year's lease but took them off the last year (I am kicking myself now!).  Not trying to be harsh, but I want to be fair as well.  Should I send to collections or litigate?  This may not even be worth it in the state of Florida due to the high costs of attorney's fees.

Excerpt from NOLO: Unfortunately, landlords in Florida (Fla. Stat. Ann. § 83.595) do not have the same responsibility to “mitigate damages” by trying to rent their property reasonably quickly and keeping their losses to a minimum if you move before a lease ends. Landlords in Florida have the option of rerenting, standing by and doing nothing (in which case, the tenant remains liable for the rent as it becomes due), or invoking the right to liquidated damages, or early termination provision. The latter remedy is only available if the lease includes a liquidated damages clause, or in addition, that provides a maximum of two months' damages and requires tenants to give no more than 60 days' notice. The liquidated damages provision must substantially include specified language in Fl. Stat. Ann. § 83.595.  (Unfortunately I didn't include this two years ago, but I will going forward.)

But keep in mind, that if the landlord doesn’t agree to let you off the hook, you will be liable for paying rent for the remainder of your lease. This could be a substantial amount of money if you leave several months before your lease ends. Your landlord will probably first use your security deposit to cover the amount you owe. But if your deposit is not sufficient, your landlord may sue you, probably in small claims court where the limit is $5,000 in Florida.

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Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
11y

And remember, winning a judgment isn't worth much if the tenant isn't collectible. 

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  • Aaron T.Pro Member
    Developer · Aguada, PR · Member since 2014 · 927 posts · 279 votes
    11y

    sounds like this is an example of paying lifes tuition. this one will cost you a little, but you will keep moving forward.

    I have heard, never let them pay last months rent out of the security deposit, becuase you will not have any leverage or capital if there is any damages.

    Also, dont make the security deposit the same amount as the monthly rent, that way its clear that the depoist is not for rent, which can be reinforced in the lease contract.

    I would look at your oportunty costs, and is it going to be worth your time and effort to go after them. If you are used as a referal, then you can speak your mind to the new landlord.

    good luck.

  • Investor · Winter Springs, FL · Member since 2010 · 165 posts · 68 votes
    11y

    Never trade security deposit for last month's Rent, NEVER, as @Aaron T. said.

    I will just fix the property and get a new tenant. Move on...

    Lawyers will cost more than fixing whatever the dog did.

  • Investor · Miami Lakes, FL · Member since 2015 · 65 posts · 5 votes
    11y

    @Anil Samuel I must concur with both @Aaron T.

    on this one. Whatever damages were done to the property will most likely not exceed the tremendous amount of money that will have to be paid in court costs and attorney fees should you want to take them to small claims court. Not to mention the time it will take away from you and the stress that it will add to your life. I believe that your best bet in this situation would be to bite the bullet and move forward. In other words, just fix the property yourself and move on about it. Unfortunately as a landlord, unexpected (yet sometimes expected) costs like those are the small prices that one must pay to be the landlord, in any case. I hope that we were able to persuade you some how and help alleviate some of this headache. Best of luck and prosperity to you in your life and in your business! Have a nice day!

  • Investor · Miami Lakes, FL · Member since 2015 · 65 posts · 5 votes
    11y

    Capital expenditures is the proper legal definition for it, which is money that one must spend in obtaining or maintaining fixed assets such as properties.

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    11y

    And remember, winning a judgment isn't worth much if the tenant isn't collectible. 

  • Real Estate Broker · Brandon, FL · Member since 2008 · 283 posts · 64 votes
    11y
    Agree with @Aly L A judgement is only the first step and is just a piece of paper in a drawer if it's not collectable. As others have said, chalk it up as a lesson learned and move on to getting it re-rented.
  • Bill S.Pro Member
    Moderator
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    11y

    @Anil Samuel a couple of things now that the cow is out the gate. Close the gate so the rest of the herd doesn't get out.

    1) Get an early termination clause in your lease. Something like

    "Early Lease Buyout Fee $____ Resident may pay this one time fee to end the lease  early and not be held liable for the remaining months of the lease. A 30 day  notice is still required."

    I calculate this as a stand alone fee. Do NOT make it a multiple of the monthly rent amount. I take the 2 months rent amount and subtract a few dollars so $795 rent would have a termination fee of $1,570 or something like that.

    2) Never use the SD for the last month's rent. It never works. There is then no money to clean. For me 1 in 20 tenants clean like I want it clean despite the specific instruction for cleaning that I provide them. There is no money for repairs either.

    I don't know about your state but here I can pursue them without the cost of an attorney. I would do it just for the education. I know some landlords that do their own work on this and pursue collections vigorously. I think it's a bit of a game for them.

    Lastly as @Aly W. pointed out, you can't get blood from a stone. If they won't ever have money it's not worth it to chase them. Again those landlords that chase money, tell tales of tenants wanting a home loan or landing a good job they don't want to let go of and the landlord finally gets their money with interest. Most landlords just move on.

  • Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes
    11y

    @Aaron T.  You are definitely correct this was an educational experience, lucky it didnt cost too much or hurt too bad

    @Javier Marchena  Lesson learned about using security deposit as rent, I will be changing the verbiage in my marketing and leases

    @Gino Forte  I agree about the court costs, I wasnt aware this would be apart of capex.  Good thing I am taking a commercial real estate class this weekend.  I will definitely be asking that question.

    @Aly W.  I talked to my mentor in FL and he said exactly the same thing, it's not worth pursuing if they have nothing to take

    @Wes Eaves Agreed!

    @Bill S.  Now that I know about the early termination clause which was changed in 2008 for Florida, I will be updating all my leases accordingly.  I also agree about the cleaning aspect, they will probably never meet my standards...lol 

    All, I really appreciate the invaluable feedback from the greater BP community on this one!

  • Investor · Miami Lakes, FL · Member since 2015 · 65 posts · 5 votes
    11y

    I'm glad that I was able to help you @Anil Samuel!

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