All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowGeneral Landlording & Rental PropertiesArrowSTR terminated early - should I refund rent?
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

STR terminated early - should I refund rent?

7 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 40
  • Votes 4

Seth Levey
Rental Property Investor from Westminster, CO

posted about 1 year ago

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?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Real Estate Finance
  • Posts 1.4K
  • Votes 1.5K

Ned J.
Investor from Manteca, California

replied about 1 year ago

They default on the lease and as long as your lease states that rent will not be refunded in this situation, then I would not.
But you opened the door by saying "you would consider it". So it really depends on how you want to deal with that statement..... they did what you asked, probably based on the expectation of getting the pro-rated rent back....so do you consider " I'll consider it" a promise or just a tactic to get them out with less drama and you really had no intention of doing it.

Legally you should be fine based on your lease....

I would deal only with the owner of the company....she can deal with her employees that got kicked out for being stupid.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 40
  • Votes 4

Seth Levey
Rental Property Investor from Westminster, CO

replied about 1 year ago

@Ned J. Thanks for your reply. It’s pretty cut and dry as far as the lease goes. It’s more of a philosophical question to see how others might approach the situation.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 7.0K
  • Votes 4.7K

Theresa Harris

replied about 1 year ago

@Seth Levey   If you can get it re-rented for part of the month, I'd refund them the difference.  Otherwise, they left due to bad behaviour, you shouldn't be out of pocket.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 40
  • Votes 4

Seth Levey
Rental Property Investor from Westminster, CO

replied about 1 year ago

@Theresa Harris yes that’s a good idea. I posted it for rent again, thinking that would be the fairest way to reimburse them, if I can be made whole.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Real Estate Finance
  • Posts 1.4K
  • Votes 1.5K

Ned J.
Investor from Manteca, California

replied about 1 year ago

If its cut and dry in the lease....and you were justified in doing it, I would not refund the rent unless you get it rented back out really quick and don't lose $$.

Its not your fault that they acted like idiots and got kicked out. You should not lose $$ because they couldn't hold up their end of the contract. That's why many business have non-refundable deposit and cancellation fees.....hotels, airlines, doctors offices etc...... if you bail on me and I could have had another paying customer using my services at that time, then I'm not eating that lost revenue.... that's on you.

If I got lucky enough to rent it out real quick I may refund the $$ just to avoid the hassle of dealing with them if they put up a fight.... otherwise they are on the hook for the booked time

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Analyze Deals, and Real Estate Finance
  • Posts 11K
  • Votes 16K

Nathan G. (Moderator) -
Real Estate Broker from Cody, WY

replied about 1 year ago

I would prorate the rent and kick back any unused portion.

In the future, you should be more clear about what happens in situations like this. If they leave early, of their own choosing, then they should be held responsible for the full term of the lease or until a new tenant takes over. If you kick them out for lease violations, I would argue they would lose any remaining rent money held but would refund the deposit if the unit were left in good condition and there are no additional problems.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Analyze Deals, and Real Estate Finance
  • Posts 11K
  • Votes 16K

Nathan G. (Moderator) -
Real Estate Broker from Cody, WY

replied about 1 year ago

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.

Rotate Log in or sign up to reply
  • 1
Related Resources General Landlording & Rental Properties
Have Top-Notch Tenants? Here’s How to Keep Them
5 Essential Property Maintenance Tasks To Keep Your Rental in Tip-Top Shape
Rental Arbitrage: The Secret to Making a Fortune on Airbnb Without Owning Property
8 Reasons the Best Landlords Always E-Sign Rental Agreements
6 Tips for Listing Your Rental Property Online
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Nathan G.
Nathan G.
Cody, WY
9.76
Score
Supada L.
Supada L.
7.77
Score
Joe Splitrock
Joe Splitrock
Sioux Falls, SD
6.25
Score
Joe Villeneuve
Joe Villeneuve
Plymouth, MI
6.04
Score
Bjorn Ahlblad
Bjorn Ahlblad
Shelton, WA
6.02
Score

General Landlording & Rental Properties Trending Discussions

  • Raising Rent: Good idea or bad business practice
    43 Replies
  • POLL: Rent delinquencies, January 2021.
    26 Replies
  • PM Referral in Cleveland
    8 Replies
  • Just starting out, use VA loan?
    8 Replies
  • Am I bound by a previous owner's property management agreement?
    7 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.