Tenants want to move out.

Tenants want to move out.

Rental Property Investor 路 Lake Zurich, IL 路 Member since 2019 路 70 posts 路 14 votes

Hello everybody,

Our tenants all of a sudden decided that the house they rent from us and loved, is no good for them anymore, and after sharing with us that the floor (laminate) is still "bubbling" (after we fixed it) which is bothering them now more as they work from home during pandemic, the walls are too thin and they can hear other being on the phone even though the doors are closed, and that their realtor friend found them many great option to buy their own house, our tenants without actually announcing that they want to move out, asking me 5.5 month in to their yearly lease, "what are our options?". I am surprised they even consider that there might be any, with their lease is being only for 1 year and it's 6.5 months left until they either renew it or give us 60 days move out notice. Their rent is $1800. In a lease we have a $3600 break lease fee + 60 days move out notice and they still responsible for these remaining 2 months rent, which start on a date when the $3600 are received and a written notice about their intention to move out was provided. 

Since the very start I accommodated them on number of things: we agreed on direct deposit and they did it only for 1 month, then said it doesn't work with their bank and asked me if the check would be acceptable, so I agreed to be driving to the bank myself every month depositing their rent checks (no big deal, it was worth for having good tenants). Then they were late on 2 occasions with their rent payments, I didn't assess them a late fee, I let it slide. Then we've jumped to attention each and every time they had concerns about the property. At last but not least, there is a dog only allowed in their lease. They got rid of a dog that they had, and asked me if they can have a kitten. So... once again, good tenants, we didn't want to loose them and I agreed, still having concerns about cat's urine on the floor. And now, few months later, they are letting me basically know they want to move out at all, with no regards to their lease... I was disappointed that they do not even recognize any responsibility that they have after signing the lease, and are not willing to pay for both (rent and mortgage), since they want to buy a house. They want out of the lease, but don't want to pay for it. They also talked something about many people moving out of the city, which was irrelevant and has nothing to do with them and their lease or us. 

Of course, this time (for the 1st time) I told them "You are welcome to not to renew the lease, but, no, you would still be responsible for the rest of the lease payments, should you decide to move early, regardless of when you want to move, before May 1st, 2021". I am trying to hold them to their commitment that they've made. But they were disappointed to hear "No" from me, because they used to get their way all the time before, and seems that they expected to push us again and as far as they can. I don't even know in what condition the house is right now after they got a cat... 

Now, after all this, I wonder how to handle it properly with accordance of local State laws and regulations? How to respond to them when it is in writing? What rights do we have as Landlords, and does this signed lease even mean anything (it's a residential standard lease offered by an attorney)? Our preference is "no subleting" and it is in their lease too that they signed, it's so random people wouldn't trash our property. Needless to say, to try to rent the house going in to winter will be challenging. Also, is there a proper closure that I have to do with them when the time comes, certain steps that we should follow? The property is in Lake County, IL. 

Any suggestions are welcome and would be appreciated. 

Thank you!

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Real Estate Broker 路 Hyde Park Tampa, FL 路 Member since 2019 路 2k+ posts 路 3k+ votes
6y

Just say no.  You're running a business. Communicate like a business owner - something like:

"As you know, your lease is for a term of one year with 6.5 months remaining on it.  Your contractual options, per your lease, would be to honor the lease for the remaining term or provide 60 days notice and pay 2 months rent representing the early termination penalty."

I would only respond in writing so you have a record of what was said and you cannot be misinterpreted.  

And, do yourself a huge favor, and manage to the lease. Don't do favors, don't waive late fees...do what's contractually right so that your tenants know how you will respond each and every time.

As soon as you say no - that you're enforcing the terms of the lease, they'll find someone else to torment.  Hope this helps...

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  • Realtor 路 Houston, TX 路 Member since 2017 路 178 posts 路 68 votes
    6y

    Yeah, they aren't home owners yet with even more responsibility than they're used to. You need to just let them know these are their options. If they think it's too steep to pay the penalty, then they need to reconsider.

  • Rental Property Investor 路 Lake Zurich, IL 路 Member since 2019 路 70 posts 路 14 votes
    6y

    @Charles Large! Thank you! What a cheerful and detailed comment! They actually may or may not qualify for mortgage. But they make great money (both!), and in their twenties they are making more money than most people tat are older than them do! Despite the pandemic and massive losses that millions of Americans experiencing right now.

    I am intended to put in writing that from now on I'll accept their checks sent only via mail and will remind them of the late fees should they be late with their rent.

    Thank you for your cheerful advice馃檹馃憤馃槉!

  • Contractor 路 Mickleton, NJ 路 Member since 2020 路 114 posts 路 112 votes
    6y

    @Kate Koeller let it go... let them go... move on... it'll all work out for the best. Go to court. Pay fees etc... probably still lose. Get em out. Get the place ready and it will rent again likely to better tenants. Move on and don't be afraid of losing money or not renting etc etc...

    Move on.

  • Rental Property Investor 路 Portland OR 路 Member since 2018 路 2k+ posts 路 3k+ votes
    6y

    @Kate K. i really hope for your sake that your tenant does not decide to seek legal assistance (which for tenants is generally free) as you have been given the information regarding mitigating their damages but you appear to still insist on charging for the entire lease. 

    You also appear to hold a grudge against these folks since they make a lot of money. 

    No judge is going to rule in your favor so it wont be their credit that is ruined. 

    Let them go kindly. Find out what the exact time frame is (prob no more than 1.5-2 months) that you can charge for lease break then work with them diligently to re lease. 

    Finally who cares why they want to move - its really NOYB?

  • Realtor 路 Gettysburg, PA 路 Member since 2020 路 38 posts 路 11 votes
    6y

    @Kate Koeller always remember this is a business, not a charity and good tenants are out there. You have to stand your ground and if you need to send them a highlighted copy of the lease showing the terms of breaking it. I think there鈥檚 more to the story than the walls being thin.

  • Real Estate Consultant 路 OH 路 Member since 2018 路 24 posts 路 27 votes
    6y

    @Kate Koeller we have a similar clause in our lease in regard to terminating the lease early.

    There is also an option to have someone take over the lease at a penalty. That way you don鈥檛 have vacancy losses but this person can get out of their main contract.

  • Rental Property Investor 路 Lake Zurich, IL 路 Member since 2019 路 70 posts 路 14 votes
    6y

    @Rox Whit, thank you for your advice! That's why I posted our situation and asking more experienced Landlords for suggestions. That's exactly what I believe is the right thing to do - to stand our grounds, stick to the lease contract, while working with them to allowing to move out while finding new tenants and minimizing our possible upcoming damages. It is a business, not a charity. And to let them to walk out on us at any time when they just decided to buy a house but don't want to pay for their decision, and force us to absorb all the loses and mitigate the damages on own that they are about to cause to us, WOULD be a charity. So thank you for confirming that I'm on the right track. Plus, to make sure this IS the right way to go, I DID read local laws to make sure what I'm allowed to do and what I'm not, as a Landlord. Plus, I'll be reaching out to a RE attorney as well.

  • Rental Property Investor 路 Lake Zurich, IL 路 Member since 2019 路 70 posts 路 14 votes
    5y

    Theresa, quick question - how do you charge in this scenario, say, $80 fee per day for a short term. Do you have Addendum that you create and sign with your tenant to add to your existing lease? And how often do you charge them this $80 per day fee - daily, once a week, or you are charging a certain amount upfront, calculate however many days they lived on your premises and then refund tenant all unused money, after they move out? Thank you!

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