Tenant Wants To Stay Beyond Lease End Date

19 Replies

I have a tenant whose lease is up 8/31 and I’ve got another lease for the unit starting 9/1. The current tenant says they can’t be out until the evening of 9/1. I’m going to have to tell the new tenants they can’t move in until 9/2 and to pro-rate that day of rent off. I’m holding a security deposit for the current tenant. Am I allowed to take that pro-rated amount out of their deposit? Is there a more tactful way you’d handle the situation?

Thank you,

Art

@Art Maydan You can take that day of rent out of their deposit, but you must first make a "claim on deposit" before doing so. Most states have an addendum to the leases, that states if the tenant "hold over", you can charge double rent. Check your states landlord tenant laws, and give your existing tenant this in writing, they just might be able to magically get out on the 31st!!!

@Kim Meredith Hampton Thank you, Kim. Is a "claim on deposit" when you put in writing why and what you're withholding when returning the deposit?

I looked here and here about the holdover tenant thing:

https://www.legalmatch.com/law-library/article/hol...

http://www.retailrealestatelaw.com/archives/1470

Am I understanding correctly that I can charge 2X rent for a holdover tenant, but it has to be in the lease? It seems this would be a stronger motivator for someone looking to stay longer than just one additional day. And wouldn't this conflict with taking the pro-rated rent of the new lease out of the deposit since the amounts would be different?

Here's what the lease says. Does that mean that I can charge 1/30*(double current rent) for the extra day? And do I need to file a "statutory forcible entry and retainer" action in order to do that? What would that entail?

Your lease is pretty clear, that the tenant will be billed double rent for any time that he has to occupy unit. This could be used as leverage to try to get him out quicker, and I suggest doing what you can to get him out. If you cannot get him out, try to work with your new tenant to make sure you start the relationship off right. He can be refunded for any days he does not occupy, but if he pushes the issue, some jurisdictions say you need to put him up in a hotel for the day or so. Maybe give him a heads up, just to be prepared with options.

So you left yourself a couple hours to clean , do a walk thru , fix any problems between tenants .   That will be fun 

Honestly,, I would absolutely give them the riot act and inform them that they absolutely have to be out the 31st at noon.. They have 8 days to pack and rent a truck, they can put their crap in a truck and sleep in the parking lot.. but they have to be out. 

YOU"D BE absolutely surprised how fast someone can pack their crap when you hold them to it.  

We had a 75.00 dollar per hour penalty for any one not out by NOON.. it was in our policy packet and we held to that.. NOT sure what your state regs are but  from what I read in your lease..

A. you would need to file a forceable entry.. and retainer action with the court ,, for tenants failure to vacate,, then tenant would be forced to pay you double rent for any days they remain in unit.  (which is basically nothing to be scared of for them)

OR>>>> which is much more demanding..

B. You give tenant written notice to them that if they are not out at noon on the 31st, your giving them notice that thier lease will extended for and additional year, with a 20% rent increase..

C.. IF you don't give them written notice per item B that he lease is extend for the 1 year term, the tenant would be on a month to month term,, SO DO B>>> and see how fast they leave.. they'll be out tomorrow.. 

SO GIVE THEM WRITTEN NOTICE that if they remain in the unit 1 minute past the time are are to be out that you are extending the lease for another 12 months, and will increase rent by 20%.. per .. Notice of lease extension due to intent not to vacate on 8/31/ 2017 by 12 NOON is what the top of my letter would state. 

Do you fully understand this clause in the lease,, DO THEY ?? HIGHLIGHT it and say you see no reason for them not to be out as per their original plans,, that the new tenant has said they need access and can not be delayed.. and if they want to risk the legal issues of this portion of the lease you fully intend to exercise that option, and here is the Notice of Lease extension per B on their lease agreement.. 

Wow! Sometimes there is a difference between what you "can do". And what you "should do". Everybody's threshold is different here. If the tenants have been good ones you might do it different than if they have been troublesome. It's a chance to be nice to good tenants and have them leave with a good taste in their mouth or maybe nudge a bad one out a little quicker. Just sayin RR. .

That is the risk with trying to rent a house and leaving yourself no gap time. I won't let a renter lock up a house for a specific date until the previous renter is out. I rarely show a house while a renter is still there. I would say 1 in 10. Its just easier to assume a one month vacancy on a turnover and make it easier on myself.

But if you could save yourself a month of rent on every turnover, you're doing extremely well and its probably worth the risk a little bit.

Just tell your tenant to do the same thing with their current landlord. Chances are their current landlord hasn't promised that house to someone with no lead time like you're doing. :-)

Then offer to pay the new tenant's prorate rent x 2 and everyone wins - unless your new tenant has lined up days off from work and rental trucks to move. Then all bets are off..... :-)

@Deanna McCormick Thank you, Deanna, for explaining that for me. I think I'm going to go with the 20% increase threat option to start the relationship with the new tenants off on the right foot.

@Mike H.  Your response is basically after the fact that @Art Maydan has now to deal with.

As a LONG time property owner/ PM for other owner I can tell you the name of the game is IN and OUT.. ASAP that means turns in  24 hours out and noon and in by noon on the first.

No loss of rental income is the Goal.. 

But you have to plan and have your workers lined up to do the necessary, painting, cleaning, believe me it can be done.. you can get in early to make a make ready list have your supplies lined up and do required light maintenance while the old tenant is still there.

With complexes of over 300 units we did this all the time.. With my family business of 15 units we did this all the time.. I showed occupied units and rented.. IT was a RARE occurrence (a trashed apt) that we wouldn't be rented up and ready to go.

@Ralph R.  When your old tenant says he's gonna go.. he needs to be GONE,, you don't start a New tenant off with stalling the move in....You as landlord set the bar hours and on the last day of the month IT"S BAR CLOSE.. LAST CALL.. your out.. :)

In policy packets make sure there is a stiff penalty for not being out on time.. and give that information to tenant when they give notice and again a few days before the end of the month. 

Policy Packet @Ralph R.  

What's more important than your lease ? the policy packet .. it sets the policy the tenants are obligated to follow and is included on lease as  "addendum's, and policy packet" the tenant signs they have received it at move in.

Policy packets set all the property guidelines, where to pay rent, deposits, how appliances are to be taken care of, everything and anything you want is in that..

Along with how to give proper notice to move,, A policy packet we gave out was about 20 pages of rules and regulations,we put it in a folder and the back page was signed by tenant and we took photo copy of that to verify they had received it. It was info from where to put your trash, to how to reset a breaker in your apartment.. hours pool was open.. parking policy..ect

but the most important come time for MOVE OUT was the move out procedure / policy,, where we gave them a copy of their condition check sheet from move in, with a charge sheet for every cost related to cleaning their apartment,, and rules to follow, how to turn in keys, call for move out check on last day, and that we CHARGED $75.00 per hour if they did not have their keys turned in by noon on move out day.. 

the larger the complex probably the more in a policy packet,, 

It may sound like @Deanna McCormick is being unnecessarily harsh to a soon to be former tenant, but there are reasons to have those types of policies. When you are running 300 doors like she is talking about you must be uniform in your actions. Are you prepared to give everyone a free pass of a day on move out (That does become 300 days or a years rent). If no which tenants are you going to allow to have that free day? If you allow the single white mother this time, what happens when the African American tenant asks next week? The tenant who is pregnant, the vet in 5B? There is firm and fair and as long as it is in the lease and brought up at the time of signing there is nothing wrong with sticking with what was agreed upon. 

Just my 2 cents

Its harsh but true. When you are swaying in your policies from time to time you open yourself up for the angry tenant that had to move out by 12pm but found out that the tenant in 5b got out at 6pm with no charge. if it happens to be a color thing then it can look worse even though it wasn't meant to be. better to be safe than sorry. Especially in this sue happy country. 

@Deanna McCormick @Shaun Patterson  @Mike Cumbie       that's all good and true and maybe my mistake. I didn't see where the op was talking about a large complex.  I made the mistake of thinking that a question such as this was posted by somebody that wasn't managing 300 units or a large complex.  I was thinking in terms of a single family or duplex or something on a smaller basis. When one or 2 tenants make up 100% of your income base a person or at least I tend to manage differently. And yes I would treat  all tenants the same. Irregardless of the circumstance. I'm not dealing with 300 tenants though. Just like the difference between running a small mom and pop buisness versus running a larger buisness such as Walmart the rules and SOP are not necessarily the same. RR

So the property in question had four tenants (coach house). Only two are pushing to move out a day late. Would all four tenants on the original lease be subject to the holdover clause where the lease renews for a year at a 20% increase?

I haven't mentioned the clause yet and they're still pushing back, saying they're med residents with busy schedules and I didn't give them enough notice. I'm saying they had the lease for a year and their schedules aren't more important than the new tenants'.

There is no logic is catering to a tenant that is moving out. By doing so you inconvieance your real customer who is your next tenant. Your policies should always be in place to insure you start on the right foot with new tenants, departing tenants be damn.

If I was the new tenant moving in I would be royally P*ssed with my new landlord for not recognising the fact that move out takes place before the move in on the first unless otherwise agreed to by new tenant.