Mo-to-Mo - Tenant Abandonment, Pursuing Rent

3 Replies

I purchased a commercial office building this year that was poorly managed. The tenants were on month-to-month leases for years and had very little if any deposits. After renovating the building for the last few months we noticed the tenants on October 4th that their month-to-month agreements would term on November 30th (so nearly 60 days notice). One of the tenants, without providing their contractual 30 day notice, abandoned their space on November 2nd and have not paid rent. They have no deposit to offset. I reached out to them prior to their late rent date, letting them know they were approaching a late rent fee. I then noticed them about the late fee, and then delivered their 3-day default notice on the 7th.

My question is it seems like proceeding with an eviction (unlawful detainer) doesn't make sense as they've already vacated. Should I still follow that process or is there a more appropriate process to follow to collect the last months rent and late fee for a tenant that has abandoned the property?

@Michael Stoltey It is really up to you; inherited tenants are sometimes unscreened and as you said the building was poorly run. I would see it as an opportunity to spruce up the unit and focus on renting it at market rent to a new and better tenant that I have screened. Some LL will pursue the delinquent renter and try to get judgements against them; others do not. Personally I spend my energy pursuing new tenants not old ones; never sue someone who has no money-my attitude for what it is worth. All the best!

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here