Real Estate Investor · Streamwood, IL · Member since 2017 · 14 posts · 5 votes
Situation: I have a tenant who due to sudden illness needs to end her lease early and return home to her family in Ohio to care for her.
She isn't disabled by the illness, not covid - just needs medical attention. She's 5 months into a year long lease. Her husband truck driver also in Ohio reliably paid the rent while she stayed here with her young children who attended a local boarding school. She would stay in the unit during periods of time for her children to come to visit on weekends.
I was considering an option to accept 2 months rent, to cover an empty unit while preparing it for show, and another months rent to allow time on the market. If I were to obtain a new tenant sooner I would return a months rent to them.
I would offer these in exchange for providing a good reference and willingness to accept their return, if they wish.
I would let her opt out, give deposit back depending on home conditions and wish her well. You will get a new renter quick in this market, even if you lose a few dollars. Its been a tough year for everyone so if you can afford to let the bail happen I would allow it. If needed you could opt to only refund 50% of the deposit. Depends on if you can afford it, but I would do my best to help out.
I would let her opt out, give deposit back depending on home conditions and wish her well. You will get a new renter quick in this market, even if you lose a few dollars. Its been a tough year for everyone so if you can afford to let the bail happen I would allow it. If needed you could opt to only refund 50% of the deposit. Depends on if you can afford it, but I would do my best to help out.
I'm with @Collin Bryston Adams above, be flexible. I've done rentals for nearly 40 years and ran into situations where tenants had to move due to family issues, medical problems, job relocation etc. I got a tenant all excited with my rental, single girl, moved in and three months later had a promotion and needed to relocate. Turns out she was neat and tidy, unit needs no work, allowed me to showed the place, and was rented with no interruption. Had another unit, tenant just signed a renewal for his second year, got a job offer that paid much more, on the other side of the country, so he said he'll advertise on Craigslist, do the showings, and let me re-interview the top three. There's great demand in the area, so the deal was the new tenants move in with the unit as is, he moved out the 27th of June, and the new tenant moved in July 1, and my wife had three days to do a little cleanup. I normally rent a little below market, about $150/month but he manage to rent it at market, current tenant now with me 4 years, and I'm $8,000 ahead on rent alone, and ahead another $1,700 not losing another months rent vacancy. This compared to fighting with the last tenant, keeping his deposit, keep it vacant for the usual month between vacancies.
Things sometimes turns out better than expected.
We're a little flexible as my wife and I had been renters a few years before marriage. In my case, I was young, was promoted a few times, and needed to relocate a few times. Back then, my company handle all issues, including dealing with landlords and penalties. My wife was across the country when her sister, a few months from graduating from college was killed in an accident when the motorcycle she was a passenger was hit by a oil company truck trying to beat a red light. Her parents were so grief stricken, that she quit her dream job in LA, moved back to NY to help her parents through the tragedy. In all of my moves, and my wife's, we were both fortunate to have understanding landlords. Imagine if she had to go through such a tragedy and all her landlord's concern was his vacancy and keeping her deposit or collect two more months rent to boot? I hear many heartless landlords do that and often see it on court TV. Yes, the family collected a settlement from Getty that took a few years. But thinking about it, is life just about dollars and cents?
Finally, we believe in "karma", you treat people well, you'll be rewarded. My wife and I concluded we would have never met if she decided not to quit her job, move back to NY for her parents. Then when my friend and I organized a Christmas party to meet single girls, my wife skipped a party she planned on going originally to attend ours because she had a little cold, and her friend giving that party had a newborn. I often joked she met me because of good karma, treating her parents right and caring about her friends newborn. But then, she had a cold and came to my party? Well!!
Marsha, they are leaving the rental no matter what so the best thing to do is let them terminate the lease early and try to make it as seamless as possible , start advertising the apartment now and have the tenant cooperate with showings . As long as there is no damage I would return the security and request a half months rent for early termination .
THANK YOU for your valuable feedback 1) Because of her medical needs, I've chosen to release her without penalty contingent on exiting the property in the same condition she found it, and to exit by March 1st. She agreed with the support of her family. 2) I do need a buy-out clause 3) I need to familiarize myself with state laws regarding buy-out clauses in Illinois.
@Marsha Burks I would double check with your State laws regarding a tenant being released from a lease contract due to seeking medical care. For example, there are some laws that allow tenants to be released from their lease if the medical care required is not in reasonable proximity to their current residence. I am not an attorney, so I would consult one, or try and lookup your landlord laws.
@Michael Robbins Thank you Michael. Interesting to me that the state would consider the tenants proximity to medical care as a basis for legally releasing a tenant from a lease contract due to illness, especially in the case where the landlord is willing. The rental property is on Illinois. She's returning to Ohio to continue medical care with support of family. Thanks for the heads up. I will double check the state laws.
@Marsha Burks I think you made the right call...to @Michael Robbins point, a tenants direct illness and notifying you might land in the area of reasonable accommodation...it's a slippery slope as a landlord...the worst part about the fair housing laws is that they are not designed to protect us as property owners...any tenant can file a complaint...civil rights, especially...once the process starts it won't end until it does. It's pretty painful to be caught up in the system when a tenant makes a claim...whether its true or not.
Speaking with an attorney and having them review and revise your lease is worth it's weight in gold.
Have the tenant sign a simple release stating that she relinquishes the property back to you and that she agrees that the lease is voided and she is happy with the terms set forth within the release.
