Tenant moved out - Discovered something in his lease

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Tenant moved out - Discovered something in his lease

Tony Kim
Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes

OK, this might be a total jerk thing to do, so I thought I'd run it by you guys first. 

I have a Section 8 tenant who has pretty much been the ideal tenant who keeps his place very clean and always pays his rent on time and is a very friendly, outgoing guy. 

Several months ago he got married and his new wife and new step-kid move into the unit, but he does not tell me about it. I only find out about it a little later because the tenant calls me to let me know that the rent will be a few days late because his wife got a restraining order on him for hitting her. He spent the night in jail and his brother bailed him out, but he can't go home because his wife is living there. This is of course, all a big surprise to me. Eventually, it all works out because his wife decides not to press charges and they go to marriage counseling and they are doing much better now.

Several months have passed now and his voucher request for a 2 bedroom has just been approved and so he gives notice to me and his final day was yesterday. So now I'm going through his lease and discover that for any additional occupant that moves in, he is required to pay an additional 10% of rent. In other words, he's technically should have been paying me an additional $372 per month for the past several months.

Am I allowed to deduct this amount from his security deposit? If so, would you guys deduct it? The way he's been talking, I can tell that he's really counting on the security deposit money. Thanks in advance for your input!

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Robert Goldman
Member since 2019 · 33 posts · 36 votes
6y

The rent for a two bedroom apartment is $3,720 per month (10%=$372), what kind of Section 8 do you have and which state is this going on in, I never heard of anything from section 8 in the numbers you are implying 

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  • Abigail Nalbandian
    New Orleans · Member since 2019 · 15 posts · 4 votes
    6y

    @Robert Goldman this is genius!

    1Reply
  • Robert Goldman
    Member since 2019 · 33 posts · 36 votes
    6y
    Originally posted by @Louis D.:

    The yellow on the house at 

    108 North 5th Avenue Long Branch New Jersey,

    doesn't look bad at all. I think that painting it Neon yellow to fix your problem was a brilliant idea.

    Hi, yeah, thanks for the vote of confidence, I would have painted it hot pink with yellow polka dots but I time was of the essence and I went with the closest color that would go over the beige color of the house before I painted it, soooo the whole cost effective aspect thing was on my mind ;) however I did raise the  rent from the $600 to $800 which gave me an extra $2,400 dollars a year which paid for the new toilet ($70.00) and then some, I add a $50 yearly increase to my Sect 8 rental leases, this way the case worker who one must contact in order to implement an increase can reference the agreement and approve the $50.00 a month fee, in my experience the case workers don't like to give any rent increases if they are not in the original lease, a definite way to avoid a long drawn out battle of climbing the chain of command who really couldn't care less if you are the best landlord (not a slum lord) and discourage anyone who asks for an increase by forgotten return phone calls to outright indignant behavior, lies and so forth, Happy trails Brother 

    1Reply
  • Robert Goldman
    Member since 2019 · 33 posts · 36 votes
    6y
    Originally posted by @Abigail Nalbandian:

    @Robert Goldman this is genius! Thank you for the vote of confidence, time saved and a new look and a $200 per month rent increase over what she was paying (with a brand new (tennant) on her sect 8 voucher,  all in the same (paint) stroke ;)

    0Reply
  • Tony Kim
    OP
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    6y
    Originally posted by @Robert D Dismukes:

    @Tony Kim well , consider it a lesson learned on your part . I am kind of curious about the section 8 voucher limit this guy had . 10% was an extra $372 per month ???? I’ll need a couple hundred units where you are .

    10% for each additional occupant. My original post stated that the wife and her son moved in. Hence, it would be an additional 20% on the base rent of 1,860 per month.

    0Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    6y

    Your lease smells of fair housing discrimination.  Roomates, maybe, but a fee charged on familial status?  Sounds like textbook discrimination.

    0Reply
  • Michael J.
    Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
    6y

    I agree that you should have caught it and charged the missed rent from the beginning, after the fact I would not personally although you might be able to legally.

    But let’s not forget the real offender here is the tenant, they did break the lease and not follow the rules. Ideally you would enforce the lease as soon as you know there is a problem.

    I would be cautious about charging more rent for additional occupants and fair housing laws. Not saying you can’t do it but make sure what your local laws are and I would definitely not add extra rent for minors. Fair housing laws should be taken very seriously.

    1Reply
  • Karen F.
    Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
    6y

    Section 8 lease supercedes your lease.  You cannot charge him a penny more than the allowable rent.  Let it go.  And I agree, you're very lucky to have gotten them out of there.  There will be more domestic violence, for sure.

    However, if there are any damages to the apt, you can deduct that from the deposit.  Document, document, document.  And don't forget to send him an accounting of the deposit, in the appropriate time frame, assuming he gave you a forwarding address.  Otherwise, send it certified, return receipt, to his last known address (your unit).

    1Reply
  • Robert Goldman
    Member since 2019 · 33 posts · 36 votes
    6y
    Originally posted by @Stephen A Binion:

    @Robert Goldman

    https://goo.gl/maps/F6Ld8Dk69qoLLSZZ6

     Factzzzzzzz

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  • Judy Parker
    Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    6y

    The moment you found out there was an unauthorized occupant(s) in the unit, you should have sent a Notice to Cease, informing the Tenant that each additional unauthorized occupant in the unit would need to complete a credit/background check, be fully vetted by Landlord, and sign a document stating that they understand they are permitted to live in the unit with the Tenant, but the moment the Tenant vacates, all occupants must also vacate.  This matter was not handled properly by Landlord.  Don't ever allow unauthorized occupants into the unit without vetting them, and getting paid additional rent.

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