Los Angeles, CA · Member since 2018 · 9 posts · 4 votes
A tenant operating halfway housing is looking to terminate the lease and vacate the premise 9 months earlier than the expiration of the lease due to problems with their business.
However, the unit has extreme damages, and the tenant has stated that they will not pay anything other than the forfeiture of the security deposit, which does not cover the necessary repairs.
As a rookie 'mom and pop' landlord in California, who now has to forgo 9 months of income, what is the best way to retrieve any monetary consideration for repairs??
What would you do in this situation, and what kind of mindset and mentality is key in tackling these types of conflicts with tenants??
Thank you very much for taking the time in reading this!
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
5y
What I would do in California? Be thankful they're gone ASAP, sue for damages if you need to, and re-rent the place. If you can't re-rent it then something is wrong because the rental market is ridiculously tight, and as a property owner you always have the responsibility of trying to re-rent to mitigate damages. The bigger issue here is the major damages that were allowed to occur. Did you know they were going to be renting this as a halfway house and operating a business?
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
All you can do is sue for damages and you will probably win and then try to collect, this is the harder part of that project. Get the place fixed up and back on the market or sell it, I mean, those are your only choices. Sounds like this was not a great first experience for you so only you can decide on next steps. No right/wrong here.
I think being a first time investor a misstep was renting to someone doing a halfway house. If you knew that and could go back in time that might be a decision to rethink. Next time, rent to a family VS a business.