Home Owner Wants His Property After Signed Lease with Tenants

[Mark Dowsett]

Hi everyone,

I run a property management company out of Tampa, Florida and I have a quick question. I have a client that has just decided to separate from his partner and has asked me to "remove his listing". That being said he knows that we have signed a lease with prospective tenants with the lease being contingent on HOA approval. (This contingency was not written into the lease, but was stated on the HOA rental app.) We would more than likely receive approval/denial this week.

Being that this is the first time I have run into an issue like this I want to make sure that I do everything correctly. Does the lease bind the renters to the property with the owner being SOL or does the homeowner have the authority to take back possession of his home thus making the renters SOL? 

Let me know your thoughts and as always thank you in advance for your responses.

sincerely,

Mark

[Tom Gimer]

Originally posted by @Cara Lonsdale:

Originally posted by @Kim Meredith Hampton:

Mark,

I think you are OK since the lease was contingent on the HOA approval. I would let the homeowner know that they need to give back their app fees, deposits, and any other fees that the prospective tenant wishes to seek etc... you have done nothing wrong, just make sure that you have everything documented and try help them find another rental

As to @Shaun C. most HOA/COA's here in Florida make you run your background and sign your lease before they look at the tenant. *** backwards, but we can't change their process

Does the contingency with the HOA allow for a denial for a different reason? I would think that the lease is executed with 1 caveat being the HOA. I don't know if you can recind the lease on the basis of the HOA contingency. It is specific to the HOA. The tenant would have grounds to sue and recapture 2 months rent (at least here in AZ).

I'm with you, Cara.

Pulling this from HOA before they make their decision is a breach.

Lying and telling the tenant that the HOA denied is a breach.

Who knows... tenant might understand and be reasonable and move on with little drama.