Need Advice ASAP - Couple Breaking Up & Lease Renewal

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Need Advice ASAP - Couple Breaking Up & Lease Renewal

Anne Caldwell
Member since 2021 · 2 posts · 0 votes

Hi,

I have a SFH that I rented to a couple last year. I received a phone call from the gentleman to let me know that they have broken up. They were qualified together using both incomes.

I asked him who was going to stay in the house and he said "80%" it will be me.  The other person does not qualify on her own and would need a co-signer.  I also understand that she is not living at the house and is out of state although her things may still be htere.

The lease is coming up for renewal on April 30th (it automatically renews for a 12 month period).  My inclination was to just let it renew but the more I think about it, perhaps I should just re-write the lease with only him on it (he now qualifies on his own) and perhaps put her down as an occupant which would make financial obligations clear. 

I have never been through this before and my fear would be that she moves back in and he leaves.

Advice would be so appreciated!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

If he wants to stay, I would make him provide you with updated financial information showing he's fully capable of paying the rent on his own. Get her out and terminate the original lease. Sign a new month-to-month agreement with him as the only renter.

As mentioned before, I would probably stick with a month-to-month because of the additional risk.

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  • Carl Millsap
    Investor · Midwest · Member since 2019 · 339 posts · 226 votes
    5y

    @Anne Caldwell here are a couple considerations:

    1. With the current environment (moratorium), I wouldn't automatically renew a lease for 12 months. A month to month lease allows you flexibility.

    2.  If they have broken up, I'd get a notarized letter signed by both stating she will be removed from the lease and he will all responsibility for the property. If she is on the lease in most areas she has a right to the property. 

    3. I would re-qualify (verify) his income to ensure he can meet the financial requirements. If he does then execute a new month to month lease.

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  • Waleep Alvi
    Investor · Oakland, CA · Member since 2020 · 108 posts · 89 votes
    5y

    If the tenant staying can afford the lease by themselves, I'd rewrite the lease agreement and move on. This stuff happens. The faster you resolve it, the faster it's over.

    This has happened to me. I just had the staying tenant re-sign a new agreement. It was fine. Further, you simply need to expect this stuff to happen.

    0Reply
  • Tammy Mason
    Investor · Fontana, CA · Member since 2020 · 128 posts · 94 votes
    5y

    @Anne Caldwell 

    I have been here before. This is how I worked it out. My tenants split up, she left. I talked to her about getting off of the lease. What she wanted to do with the deposit. She didn’t want to be on there, there is no benefit to someone not living at the property but being on the lease. It is a liability. Have her sign a release talking about the deposit, date she left, etc. I would probably make it an addendum to the original Lease agreement

    If he can qualify on his own then I would continue to rent to him but just clean up the paperwork.

    Good luck!

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    If he wants to stay, I would make him provide you with updated financial information showing he's fully capable of paying the rent on his own. Get her out and terminate the original lease. Sign a new month-to-month agreement with him as the only renter.

    As mentioned before, I would probably stick with a month-to-month because of the additional risk.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    If he can afford it on his own, get it in writing that she is no longer on the lease.  Also sort out the issue of the security deposit-eg it transfers to him and they are responsible for sorting it out amongst themselves.

    1Reply
  • Ross Y.
    Investor · Escondido, CA · Member since 2016 · 36 posts · 13 votes
    5y

    Hi @Anne Caldwell

    Have her sign a real ease from the deposit/lease.

    If he is financially qualified, I’d simply write an addendum to the lease stating that it will convert to month to month with an uptick in rent (market value if it’s risen), and solely to him.

    Rental markets are hot right now and you’re in a strong position to add cash flow here.

    If he balks and he’s qualified, maybe offer a 6 month that auto converts to month to month with the same raise in rent.

    Addendum can be written by you fairly easily here.

    0Reply
  • Dillon Cook
    Realtor · Greater Tampa Bay · Member since 2014 · 218 posts · 130 votes
    5y

    Let lease expire.

    Start fresh and requalify him as a new tenant. Don't assume anything

    Get new lease with only him on it.

    I don't know why everyone is recommending month to month. What state are you in? We ONLY do 12 month (up to 24) leases in the Tampa area and have no problems.

    1Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Dillon Cook:

    Let lease expire.

    Start fresh and requalify him as a new tenant. Don't assume anything

    Get new lease with only him on it.

    I don't know why everyone is recommending month to month. What state are you in? We ONLY do 12 month (up to 24) leases in the Tampa area and have no problems.

    I used to feel safety with longer leases as well feeling they will be more likely to stick around and if they leave I have a hefty fee of 2 months rent plus total forfeiture of the deposit.  Now all a tenant has to do is send in a CDC declaration stating they can't pay and they have a free pass where they can't get evicted for non payment.  The loophole though is you can do it for lease violations and holdover is a pass for that in many areas.  Even for new leases when they come up I plan on screening like I am looking for a long lease but then making it M2M.  It is diffidently a new way of thinking for me but remember the lease holds you just as much if not more than it holds a tenant and I want more flexibility to get rid of a tenant who is taking advantage of the system.  

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  • Joyce Tavares
    Real Estate Investor · Hayward, CA · Member since 2015 · 134 posts · 88 votes
    5y

    I would let lease run out and then sign him up on a NEW rental agreement, with just him on it, for month-to-month after he confirms he can qualify on his own.  If he is a good tenant and you are OK with a 12 month lease, then do that.  The security deposit is between the two of them and the deposit stays with the property until they vacate it.

    0Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y

    While she probably doesn't care, she is a tenant and has rights. You should have sent her notice of non-renewal within the required 30/60/90 days.

    What if she comes back in a few weeks and wants to live there? She had a valid lease that automatically renewed and you never provided her notice that you were not going to renew. The term is illegal eviction. 

    Get something from her, anything, even a text, that says she is not renewing the lease. 

    0Reply
  • Anne Caldwell
    OP
    Member since 2021 · 2 posts · 0 votes
    5y

    Greg, the notice of non-renewal comes up on April 30th which is 60 days before the end of the lease term. 

    0Reply
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