Wholesaler · Dayton, OH · Member since 2013 · 170 posts · 16 votes
Tenant signed a one year lease and breaking it in 6 months. Says her son was suppose to move in with her but never showed up. According to what she put on her Rental app. She seems to be able to afford it herself, but says she can't. Says she is moving back in with family. Is there any way to make it stick to her record.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Your lease should have a break lease clause, so review that with her and talk with her about a move-out plan.
People will move when they want to move, lease or no lease. We don't bother with long-term leases and prefer month-to-month rental agreements. Less headaches.
Make sure you get her intent to move in writing. Whenever a tenant indicates to us their need to move, we review with them our move-out procedures. This includes having them fill out a "Notice to Vacate" form and returning it to us. This is an official notice and includes the date they will return possession of the unit back to us.
As soon as we know their exit date, we can put in motion steps to find another suitable tenant. Some tenants can help by giving you leads.
Make sure you remain professional and polite. Be firm, but fair... with her and with yourself. Know the landlord-tenant laws for your jurisdiction and abide by them.
It's unfortunate when things like this happen, but it's part of the business. You can choose to work with her or against her. If you choose to work with her, the transition is likely to be easier for all parties.
Rental Property Investor · Albany, OR · Member since 2015 · 312 posts · 136 votes
9y
Do you have a fee for breaking the lease? If so, let her know she has to pay the penalty before she can move out. How hard is it to find good renters in your area? Hopefully it's easy and you can not sweat her leaving too much
Toronto, Ontario · Member since 2017 · 14 posts · 20 votes
9y
You never want to force a tenant to stay that wants to go, the risk is too much (they could damage the property in revenge).
If what you said about this tenant is true I wouldn't force her anyways. Sounds like she won't be able to afford to pay you.
I'd compromise and reason. Tell her you will start looking for other tenants and start booking showings. If any new tenant comes in and takes her place than it's a win
I would charge her penalty though for breaking the lease. At least one month rent is fair for a 1 year lease
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Your lease should have a break lease clause, so review that with her and talk with her about a move-out plan.
People will move when they want to move, lease or no lease. We don't bother with long-term leases and prefer month-to-month rental agreements. Less headaches.
Make sure you get her intent to move in writing. Whenever a tenant indicates to us their need to move, we review with them our move-out procedures. This includes having them fill out a "Notice to Vacate" form and returning it to us. This is an official notice and includes the date they will return possession of the unit back to us.
As soon as we know their exit date, we can put in motion steps to find another suitable tenant. Some tenants can help by giving you leads.
Make sure you remain professional and polite. Be firm, but fair... with her and with yourself. Know the landlord-tenant laws for your jurisdiction and abide by them.
It's unfortunate when things like this happen, but it's part of the business. You can choose to work with her or against her. If you choose to work with her, the transition is likely to be easier for all parties.
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
9y
You have pointed out to her that she has a year lease, correct?
I'm assuming the lease does not include a lease break clause (typically a 30 days notice and one or two months worth of rent).
Another option is to offer to begin to advertise the unit and tell her she will be allowed out of her lease once it is re-rented. With this focus she needs to put energy into working toward this goal by keeping the unit clean and understanding there will be applicants coming through to view it.
And frankly, if she breaks her lease and moves out, I'd still file for an eviction. I've done it before with tenants who have broken leases this way and NOT followed the lease breaking clause. Why? It's inexpensive for me to file in my county (the entire process for one person is under $100) and at least an eviction follows them for a number of years.
Personally, I hate it when a tenant views a legal document of a lease as nothing more than toilet paper.
Investor · IN · Member since 2012 · 263 posts · 168 votes
9y
@Trevor Rutherford- You mention that you can't get her forwarding address???? That's simple, just address an envelope to her (you can even put a blank sheet of paper in there) and on the front of the envelope write "RETURN SERVICE REQUESTED". If she put in a forwarding address at the post office, you will get your envelope back with the New address label on the envelope. It's that simple.
Because you do not have a break lease clause your only option is to start looking for a new tenant. Not much else you can do, aside from following your state codes, tenants can terminate their lease whenever they choose. Your only recourse is to build penalties into the lease but those are difficult to inforce.
Read your state landlord tenant codes and see if there is any recourse. Your best option is to file for non payment. You do not need a forwarding address you just send the notices to her last known address (your property).
Investor · atlanta , GA · Member since 2012 · 287 posts · 148 votes
9y
I had a few of these early on, so what I started doing in the APPLICATION PHASE was have them sign and date a simple one sheet of paper with a small paragraph that stated something to the effect of, "I understand that if I intend to break the lease and not stay for the full one year period, I am responsible for paying the remaining balance of the lease regardless of how much time is left." I make them sign and date that, and that's just in the initial application process.
It's repeated again in the lease when they sign the lease.
I learned the hard way that if you don't take measures like that, then if you do have to go to court a judge won't give you anything. This does not guarantee that a court would give you that still, but it will help when seeking a judgement.
This way you can show that at least they knew and approved of your policy on two different signing occasions prior to moving in.
Developer · Indianapolis, IN · Member since 2012 · 259 posts · 129 votes
9y
@Trevor Rutherford, I'd actually let her leave so she doesn't struggle with rent each month....especially because it's the summer right now and you'll be able to find another tenant easily (as opposed to the winter). Also, I agree with the rest that you should change your lease so that from now on there are penalties involved for breaking the lease.
Also, I've never seen a judge grant a judgement for all rent due remaining on the lease. They usually just award a few months since that is typically what it takes to get it back in rentable condition and rented out again.
The whole "you didn't fix this" argument is classic and I've seen it many many times. But at least in Indiana you are not allowed to use that as an excuse to hold rent ransom. When a judge hears that, all they do is remind the tenant that this is a possession hearing, and ask if the tenant has paid or not. If they haven't, they get evicted. The proper way for the tenant to address that problem is to pay their rent directly to the court. The court will then hold the money until the fixes are completed. Few tenants/landlords know about this method.
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
9y
If she is definitely moving, there is nothing much you can do to hurt her. If she can't afford this apartment, then she doesn't have sufficient finances where a judgement would make sense. It takes time and legal expenses to get this judgement.
Sometimes tenants complain, say they are going to move, and then they figure out a way to stay.
Perhaps you can get some concessions from this tenant, including a break-up fee. Threaten to take her to court, unless she nicely resolves this.
Vendor · Mason, OH · Member since 2017 · 1 post · 0 votes
9y
Get these from time to time, if she is basically a good person and was a good tenant til now you want to keep a GOOD reputation in the marketplace. You can file a second cause without an eviction so she is responsible for the damage or back due rent instead of a full eviction when she gives you keys if she is willing to move out with no drama.
The second cause would include lost rent and damage from the date she moved out til you re-rent.
She is responsible for any lost rent from the term of the lease. Each tenant is different, but things happen in life and I prefer to be tough but fair.
Eustis, FL · Member since 2017 · 96 posts · 6 votes
9y
Imposing a penalty for breaking the lease is a shotgun clause/unenforceable liquidated damages provision. States' legislation and statutory language preempt the lease agreement. Contract penalties are strictly forbidden in any contract that allows for the petitioner to file for recovery of actual damages.
A motion to vacate an eviction judgment is stupid easy. All they have to do is produce a meritorious defense.
Attorney · Houston, TX · Member since 2016 · 61 posts · 38 votes
9y
I would avoid taking legal advice from people in Florida when your property is (presumably) in Ohio. Each state has different laws regarding what remedies are available to landlords. In Texas, for example, the law does allow landlords to collect "liquidated damages" in some cases for tenants withholding of rent. Bottom line, check your state's property code (Landlord/Tenant chapter) for appropriate remedies. It should be fairly straightforward.
Imposing a penalty for breaking the lease is a shotgun clause/unenforceable liquidated damages provision. States' legislation and statutory language preempt the lease agreement. Contract penalties are strictly forbidden in any contract that allows for the petitioner to file for recovery of actual damages.
A motion to vacate an eviction judgment is stupid easy. All they have to do is produce a meritorious defense.
In the 2 states that I have done business(Texas and Nevada) it is permissible to change a releasing/termination fee as well as hold the tenant responsible for rent while procuring a replacement tenant
Wholesaler · Dayton, OH · Member since 2013 · 170 posts · 16 votes
9y
@Greg H. In Ohio, you can't do much if you don't have their forwarding address. If the tenant moved out over the weekend and the most you have in your favor is one, their deposit, two they paid for the month in which they left. She still had 7 months left in her lease. Damage was minimal. But it could have been worse. How are you going to hold them responsible for rent if they are gone without a trace?
Wholesaler · Dayton, OH · Member since 2013 · 170 posts · 16 votes
9y
@Brooklyn A. Never heard of the term, "eviction Judgement." If there's something I don't know that goes above and beyond a regular eviction, and if it's that easy without knowing their whereabouts. I'm all ears.
@Greg H. In Ohio, you can't do much if you don't have their forwarding address. If the tenant moved out over the weekend and the most you have in your favor is one, their deposit, two they paid for the month in which they left. She still had 7 months left in her lease. Damage was minimal. But it could have been worse. How are you going to hold them responsible for rent if they are gone without a trace?
Agreed. My response was for the poster who's claim the fee is unenforceable
Developer · Aguada, PR · Member since 2014 · 927 posts · 279 votes
9y
we can actually treat tenants like people instead of numbers. How about talk to her and let her know that you will let her out of her lease as soon as you can get another tenant. then work hard to get a new tenant in there, and let her go on her way. have her keep the unit rent ready, if its not, then use her security deposit for anything that may needed touching up.
we get so wrapped up in money and what the book says, we forget about the people that make all this happen for us.
Are you saying that upholding an agreement is not treating a tenant like people ? If the landlord has a property manager that charges to secure a new tenant, who should absorb that cost ?
I always treat people as people but I expect them to uphold their agreement or compensate me for the time to rectify the situation. When I get resistance I always phrase their question in reserve. "So if I called the you(Tenant) 6 months in to a year lease and ask you to move(and you loved the place and wanted to stay) because I just decided I wanted to sell(insert any reason) what would you(Tenant) say ? You would say but we have a year lease so you cant make me move !" Treating people as people goes both ways
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
@Trevor Rutherford If you're looking for more "votes" on a course of action I'm in the "just move on" category. I remember on more than one occasion (this was growing up) where tenants literally just bailed because they couldn't pay the rent. By the time you sent the required notices and got into the property there would be old food in the refrigerator, the lawn won't have been kept up for a month, etc. In short, I never walked into a property were we didn't think "I wish they just said they couldn't afford the rent anymore, we would have let them leave!" Sure, you can try to chase them down for lost rent but there's an element of "getting blood from a turnip". Anyway, I don't think there's really any "wrong" answer to this one and advice (like mine) is governed mostly from personal experience.
Are you saying that upholding an agreement is not treating a tenant like people ? If the landlord has a property manager that charges to secure a new tenant, who should absorb that cost ?
I always treat people as people but I expect them to uphold their agreement or compensate me for the time to rectify the situation. When I get resistance I always phrase their question in reserve. "So if I called the you(Tenant) 6 months in to a year lease and ask you to move(and you loved the place and wanted to stay) because I just decided I wanted to sell(insert any reason) what would you(Tenant) say ? You would say but we have a year lease so you cant make me move !" Treating people as people goes both ways
I hold my tenants to a standard as well. My last tenant that left before his lease was up, we agreed to keep the unit in show room condition, and he will continue to pay until we get someone in there. then it was a seamless transition. Any capital I used to turn the unit over would come from the security deposit.
Also to your point, I just sold a rental. I had a cash offer that could close in a couple weeks. I gave my tenants a heads up I was interested in selling, and would need to have open houses, etc. When I got my cash offer, I backed up the closing to 5 weeks. this gave my tenants enough time to find a place and not be in a pinch.
Of course all this depends on the type of tenants you deal. I have great tenants and I operate my business on relationships, so there is great communication.
Wholesaler · Dayton, OH · Member since 2013 · 170 posts · 16 votes
9y
@Aaron T. I would have to agree with Greg. When a tenant signs a lease, they adhere to all that it entails. If you have a tenant that signs a 1 year lease a breaks it in 6 months. Are you going to sympathize and return their deposit when they are gone?