Single family home rented to 3 Temple students for $1300/month. Tenants are inherited as property was purchased a few months ago. Their lease ends May 31st.
One tenant (AB) wanted to move out and the other two want to stay. I agreed and they found a replacement tenant (ZB) who passed my screening process. The two remaining tenants plus ZB and I signed a new agreement set to begin on June 1st, one day after the original lease with AB expires.
Today (rent is due) one of the remaining tenants tells me that he has sent me an amount (~975) for rent that is less than the $1300 amount, because this is the last month for the tenant moving out AB (who may already have moved out), and because the replacement tenant ZB does not move in until June 1st.
I dont know if this is relevant or not, but AB has not responded to my requests to meet for his final walk through and return of his share of security deposit.
And just in case this comes up - all tenants are jointly and severally liable for the full rent payment each month according to the lease.
I feel as if I should be receiving the full rental amount and the tenants should work out the exchanging amongst themselves. But alas, how should I phrase that?
how did tenant come up with 975 instead of 1300? i dont understand his reason given.
sounds like breach to me and the new contract starts n a month and they are already in breach of last month of inherited lease.
Yes but who can I hold responsible?
Obviously I can hold the remaining 2 tenants responsible. What about the one who just moved out, AB? Technically this is his last month, which was paid when they moved in.
I cannot hold the new tenant ZB responsible, as his contract has not started yet.
It doesn't make sense to me either. This is the text message that was sent to me (names replaced):
Good morning Max. Rent has been sent. This month, we sent you 996. This is because of (AB)'s last month of living here. (Remaining tenant) and I total to 975. Add the water bill, 20.85, total expenses were 995.85.
"all tenants are jointly and severally liable for the full rent payment each month according to the lease."
technically as u've clarified, the agreement is that it's between them - jointly and severally - to come up with the full rent due each month otherwise, as they have, they breach the agreement.
its up to u whether u want to work with them individually(as perhaps the only default this month is the one moving out?) but that sets a premise possibly for others where each month a paying tenant may be like ' i paid my fair share, go after the others for theirs, don't ask me!'
perhaps moving tenant is assuming applying deposit to last month?
So can I hold the one moving out responsible? I think so, however he technically already did pay his last month's rent when they moved in a year ago? How will that work?
I think I've found my mistake!
I assumed that the tenant AB and the tenant staying ZB would work out the reimbursements for the transfer of their share of the security deposit and their share of the last month's rent.
I reminded them to sort out between themselves the transfer of the security deposit, but did not think of nor mention the "last month's rent" which was originally collected a year ago when they first moved in.
Because of my assumption I felt no need to collect the "share" of the last month's rent from the new tenant ZB prior to him moving in. I knew that the tenant moving out AB was taking his share of the "last month's rent" with him, but I assumed that he was getting that directly from the new guy ZB and I would never know about it because I would get the full $1300 (wishful thinking).
Well I called the new guy moving in and explained that I had failed to collect his share of the "last month's rent" ($325, the amount I am short) and how that was causing his buddies to potentially get hit with a late fee, and that I still need to collect it from him before he moves in. He said he understands and has the money. I am told now by all parties that I will have the $325 by Monday before their grace period expires.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.