Tenant Didn't Pay First Month's Rent Is contract binding?

Question

I live in san jose california and just recently signed a month to month contract with a tenant. He hasn't paid us and it has been over a week (we should've gotten payment first, we definitely learned our lesson). My question is, is the contract binding and thus we have to serve him a 30 day notice to kick him out? Or because he hasn't paid us first month's rent and security deposit then the contract is not binding?

Account Closed · Answer

Tony,

A vacant unit is better than a unit with a bad tenant. Lesson learned. With that said, don’t skimp on eviction service and do it yourself.

Monday morning, call Eviction Service Center (google it) and hire attorney Daniel Paris to serve the 3-Day Notice to Pay Rent or Quit. After the 3rd day and the tenant still hasn’t paid rent, the attorney will start the eviction process. It normally takes 4-5 weeks to evict a tenant without contest in Santa Clara County. 6-7 weeks if the tenant contests it.

It’s a business transaction, and you made a bad decision so pay it up and move on. DON’T SKIMP! Let the professional handle it.

Once this tenant is out, hire a property management company to handle the screening and leasing the rental. Again, DON’T SKIMP. You want to be an investor, not a landlord.

Best of luck.

Theresa Harris · Answer

If he didn't pay first month's rent or the security deposit, the contract isn't executed.  For future reference, until you have the deposit and the cheque has cleared, do not hand over the keys.  You will also want to make sure the utilities that they are responsible for (eg electricity) have been transferred to their name prior to them moving in.

Andrew B. · Answer

@Tony Pham if he has taken residence inside the unit, even for one day, you have to evict him. If he has not moved in yet, then the contract is not legally binding, as no payment has been given.

Greg H. · Answer

Whether the contract is valid or not is really of no consequence if the tenant has taken possession.  The only option is to evict

No money = No keys

Tony Pham · Answer

Thank you all for you quick response! Truly grateful. Definitely a lesson learned for us and I will be sure to be more prepared going forward. I am new to being a landlord/investor and have a lot to learn.

Bjorn Ahlblad · Answer

@Tony Pham A lease is not valid if no money has been paid.

Tenant Didn't Pay First Month's Rent Is contract binding?

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