Recovering lost rent after a broken lease in NC

Recovering lost rent after a broken lease in NC

Real Estate Investor · Cary, NC · Member since 2014 · 27 posts · 3 votes

I have a nice townhome rental that rents for $1550 per month.  The rental market in this area is very seasonal being very hot April-September and cold from October-March. Last June I listed it and had multiple offers and ended up accepting a young couple with good jobs and credit. They signed a 12 month lease. They seemed ideal, they paid rent early and kept the place reasonably clean.  Four months into the 12 month lease they called and said they were interested in looking for a house in the area.  I told them they were responsible for the rent for the duration of the lease, but that I would relist it as soon as they told me they gave me a move out date.  I explained the seasonal nature of the rental market as well.  They called at the end of October to and told me they were under contract for a house with a move-out date in early December.  I listed it that day, but had no showings during the holiday period, which is not unusual and sporadic showings since.  He paid rent in December and January, but is refusing to pay rent for this month because his new house expenses are too much.  It turns out his new house is $573,000 so I have a hard time feeling too sorry for him.  I plan to pursue the rent he owes me. He has 4 months left on the lease so at most $6200. 

I have one months security deposit and no damage to the unit that will go toward unpaid rent.

I have 2 questions.

1) Should I pursue this in small claims court or engage an attorney.

2) Do I pursue the late rent amount each month or pursue the entire amount after the lease ends at the end of May or when a new tenant moves in whichever occurs first.

Any first hand advice is especially appreciated.

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  • Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    9y

    It's entirely up to you, but I would work to get it rented ASAP.  Pursuing tenants with balances can be tricky.  In my state it's fairly easy to file paperwork for balances owed.  If they have stable jobs you can collect/garnish...But it all takes time...So Time or Money...Your choice....

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    My choice is always to take tenants to small claims court but it depends on the regulations in your state. Assuming you are still actively seeking tenants all you need is proof that you are putting the effort into finding new tenants. You will need this evidence in court, advertisements, etc.

    You can wait or begin the court process immediately and apply for what is owed claiming up to the point of the hearing. By then you should have found a replacement tenant. It's really your choice as to when you want to apply.

    I would inform the tenant now that you will be filing to small claims court for the full amount and garnishing their wages. He may decide to pay or make a deal.

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