Updated almost 6 years ago on . Most recent reply
STR terminated early - should I refund rent?
I have a condo that generally functions as a short-term rental. I recently rented to employees of a construction company for a two month rental. I was primarily dealing with the owner of the company and had her sign a lease which states that rent would not be returned in the event of tenant default or other lease violation. I worked with her to resolve some complaints about noise and parking in the wrong reserved spot. Then I got complaints of leaving trash in common areas and urinating off the deck. At this point the HOA manager was threatening to fine me or even restrict my rental license so I terminated the lease and kicked them out. This was about one week into the second month and the lease rate is several thousand per month as it's in a vacation area. They asked about a pro-rata return of the rent which I said I'd consider if they left the condo clean and damage-free. They left the next day as I asked with no drama and the condo was left in good shape. On the one hand, I appreciate them leaving it in good shape and without a fight. On the other, returning the money technically violates the lease and represents further penalty to me as I would have been happy for them to stay for the duration and simply follow the rules. What would you do?
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- Real Estate Broker
- Cody, WY
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By the way, I charge companies an increased rate of 25% and a mandatory cleaning fee (in addition to the deposit). I do this because they are placing employees in the property that are not paying the bills so they are far more likely to waste utilities, violate the lease, and not clean up after themselves upon departure.
In my area, it can cost a minimum of $150 a night per person at a hotel. Renting a house for $3,000 a month for four guys is a drop in the bucket.
- Nathan Gesner
