Pro-rate the rent when tenant leaves?

Question

I purchased a property in April 2016. The previous landlord does a 12 month lease and after that it goes month to month. The one tenant's 12 month lease is expiring the end of September. She wants to leave in the middle of a month and wants her rent prorated for the unused portion after she leave. The lease does not specify. What would you do?

Jennifer T. · Answer

When a tenant is in a month-to-month situation and gives me at least 30 days notice, I will pro-rate the rent if they are moving out in the middle of the month if they will also allow me to conduct showings (with 24 hour notice) during those first two weeks of the month. It has always worked out well.

For my area, I find the middle of the month is when showing requests are the most active anyway.  Because tenants are looking for somewhere to move into on the 1st.  So it often works out just as well for me.

Account Closed · Answer

I'd tell her she has to pay the full month of October, just in case she doesn't move out when she says she will.  And tell her you'll send her any overpaid rent along with her security deposit refund.

Christina Berry · Answer

Thank you everyone for your feedback. I truly appreciate it. When I came across this situation, I was trying to think someone I could ask and then thought posting here would get me great advice. And you did not disappoint. :)

At this point my tenant was just asking about the rules. She is going to give her 30 day notice when she buys a house. At least I feel more prepared when the situation comes. Thank you all

Josh Goodwin · Answer

This.

Jeff B. · Answer

@Gail Kaitschuck

• Here is where you can read up more about this (it's statute 5321.17 in your state)

Great reference on the subject Gail - - sure would like to far more of these kinds on comments :)

Michele Fischer · Answer

Is a mid month move out beneficial or detrimental to you?

If she is giving plenty of notice and this will give you more time to get it ready for the next cycle, I'd agree.

If it doesn't work well for you, I would explain to her that the M2M ends at the end of each month and how much notice she is required to give you to end the tenancy.  If she wants to move out mid month she can, but she still needs to pay the full months rent.  Explain that if you are able to re-rent the unit sooner than you normally would that you will send a refund later.

We normally work with tenants who want to move out earlier than their contract specifies.  If the two weeks is a loss, we often split that difference with the tenant - they pay one of the two weeks, we lose one week of rent but gain two weeks to fix and market it.

Gail K. · Answer

The only difference between a tenancy at will (i.e., month to month lease) and a longer lease is that in the former the lease typically begins the first day of the month (when rent is due) and ends the last day of each month,

To terminate this lease the tenant (or landlord) must provide a 30 day written notice PRIOR to what your state describes as the "periodic rental date".  This is the date that the tenant pays rent.

So...if your tenant wishes to move out in October and she provides notice on, say, September 15th..and her rent payment is due on the 1st of each month, the 30 days begins on the 1st of the month.  Thus, she would owe for the entire month of October.

Here is where you can read up more about this (it's statute 5321.17 in your state)

http://ohiolandlordtenantblog.com/miscellaneous/ru...

Gail

Christina Berry · Answer

Thank you @Gail Kaitschuck. That makes sense. What would you do if say, she want to move out the middle of October, after the 12 month lease?

Christina Berry · Answer

I don't have the lease in front of me at the moment. The way the previous owner explained it to me is that the lease automatically renews on the first. She has to give 30 days notice to leave but that doesn't take effect until the next first of the month after the 30 days. So he explained it as the lease is always one month ahead of the current month.

Gail K. · Answer

You have a lease with your tenant.  The lease has a start date and an end date.  It has not yet moved into the month to month tenancy.

I'm going to assume the expiration date for September is September 30th as stated on the lease, correct?

If so, your tenant owes rent until the lease would normally expire.  She can move out whenever she wishes in September.  You do not have to prorate the rent for this month.

IF this tenant finds a suitable replacement for herself (and that person begins paying rent before the end of September) THEN your tenant would have a legal reason to have her rent prorated for this time period.

Gail

Pro-rate the rent when tenant leaves?

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