Tenant Breaking Lease before Move In

[Jacqueline Pino]

I am a new Pro member with a question.  If a tenant signed a 12-month lease, I collected and deposited 1-month rent 1-month security, 5 days before moving in the tenant calls to say that they will not be moving in.  What are my options regarding the month's rent and month security now that I have to list again and start the whole process again?

[Eric Carr]

You should do a little research about the local laws - I doubt there is a grace period for new tenants, but here's how my very good guess is on how it's going down

You can offer to let them out of the lease AFTER you find a new tenant. You stopped marketing the place and stopped taking applications because a lease was signed. Time is money, so now you have to start the process over and might be without tenant income for another month, may be two, because of the broken lease. Not your liability. 

You can use the deposit and first months to cover losses, which the lease signers should be responsible for, and prorate a refund for any amount left once the place is occupied. 

It's either that, or refund half, or all, and start marketing. If it were me, I would not refund it all back, especially not 5 days before move in. I am happy to work with people, but this isn't your mistake