Hi All, hoping to get some advice. We're new landlords and this is a unique situation for us. We have a tenant that had an authorized occupant to which we gave Notice to Quit just a couple of weeks ago. He remedied it immediately and then paid rent for September. He has the same unauthorized occupant back! We had a clause if the same situation occurred within 6 months that he would get an eviction notice. Question is - do we give him the remainder of the rent back when he leaves?

A Notice to Quit is a notice of non-payment of rent or money owed to you.  

A Termination of Tenancy is a notice that you are terminating the tenants lease and not renewing it. 

The unauthorized occupant has paid Septembers rent, therefore you cannot "Evict" him or her because they are paid in full.  (When no lease agreement is signed, they are considered a month to month tenant) 

If you no longer want this person in your home, you must send him or her a Termination of Tenancy and it must be sent according to your state laws regarding how many days it must be sent, etc., etc., to terminat a tenant and not renew their lease. (Always check your state laws regarding the eviction process and termination of tenancy)

In Michigan we must serve a Termination of Tenancy (on a M-T-M Lease Agreement) with a FULL 30 day notice.  Meaning a FULL One month notice before we can file the Notice in a court of law if they don't move.

If you keep accepting payments from this person they are considered a M-T-M  tenant and you will have to terminate their tenancy with you if you want them out.  Or, a  Notice to Quit,  if they don't pay their rent.  

No, you will not be returning any money back to this person, because you cannot evict this person TODAY.  Follow the laws, and you will be okay.

Nancy Neville

Thanks, Nancy. The tenant who signed the M-T-M agreement paid rent for September, not the unauthorized occupant. The tenant is boarding random people without prior notice, which he was given notice of in August. We will consult an attorney. Thanks for your input.