OK, my tenant moved out without any warning...

General Landlording & Rental Properties
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OK, my tenant moved out without any warning...

Sam Leon
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes

I have several properties being rented and have been having pretty good luck...but last few months have been nothing but headaches.

Anyways this is a NEW case.

This condo I have a tenant, single guy. He was living there when I bought the property, I inherited the existing lease, and when the lease was up I presented a new, much tighter and professional lease. That lease runs till Jan 2014.

Tenant has been responsible, cordial, not trouble maker, I hardly ever hear from him except twice with plumbing issues and I sent a plumber to addressed them.

So imagine my surprise when the guy who I mail the HOA fee to every month, who is also a realtor, emailed me today saying he was sorry to see my tenant moving out, and would love to help me rent it...MOVED OUT? Five months left on the lease? No warning, no messages, no email, absolutely nothing.

I thought this must have been a mistake, may be he was moving some furniture in or out? I called - his number no longer in service. I emailed, no reply. I went to the property and sure enough, he's out, the property is vacant, except for some trash and a refrigerator with some left overs - thanks a lot!

I can't mail him as his address is the one that's been vacated.

He didn't leave his keys either. Sucks that the mail box key he had the only copy.

He signed the standard residential lease for apartment or unit in multi-family rental housing form by Florida Realtors...and yes he also signed an Early Termination Fee / Liquidated Damages Addendum where he agree to pay $1900 (2 months rent) as liquidated damages or an early termination fee if I elect to terminate the rental agreement and the landlord waives the right to seek additional rent beyond the month in which the landlord retake possession.

I am going to keep trying to locate/contact him.

Any advice as to what to do now? Do I clean out his trash and start prep on the place to rent or I wait a few days just in case?

Who moves out without a word?

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George Paiva
Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
13y

Be lucky that they left willingly and that you didn't have to go through eviction proceedings. Clean up the place and put it back on the rental market and move on. Write off the month or so you lost rent and keep the wheels moving as this is just another cost of doing business.

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  • Al Williamson
    Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Hey @Sam Leon

    Sorry to hear about your situation.

    Standard leases have some verbiage about abandonment. Check if your lease has that.

    Also, as bad as this may sound, you don't want to throw good money after bad. Tenant may have encountered financial problems and isn't able to pay. You don't want to be in position of trying to squeeze money out of empty coffers.

    Best to you.

    0Reply
  • Account Closed
    Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    13y

    Sam,

    You might have scared him with a much tighter lease. If he was paying like clock work before you bought the property you should have left everything in place.
    Joe Gore

    Dallas, Texas

    0Reply
  • Sam Leon
    OP
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    13y

    Joe:

    He signed the new lease in January 2013 and paid rent on time for eight months. I doubt he would be suddenly scared now...I am really perplexed.

    0Reply
  • Yiv L.
    Chandler, AZ · Member since 2013 · 113 posts · 25 votes
    13y

    @Sam Leon while you are trying to locate the tenant, you might want to check Florida law on abandonment. Once you meet the required minimum number of wait days, put his stuff aside or in storage, post a sign, and fix up the place for rent again. There is nothing much you can do although you can find him or not.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Sam I hate to bust your bubble but if a tenant leaves you can't put them on the hook for the full value of the lease if you re-rent it.

    You do not want to leave the unit vacant for long anyways because of vandals.

    Also just be sure to know that just because you have things in a lease does not mean the judge will grant you those conditions. Many judges will say fees in the contract are excessive and will throw them out. If the tenant doesn't file an answer in court or show up then judges can only grant eviction and not a judgment unless the tenant was personally served and signed for the notice from the police officer and not just mail or tack to the door.

    Also even if you get a judgment you have to find them to collect and it can take years to extract a little money if at all if they file BK and wipe out your claims.

    I wouldn't care about a key. You can drill out the locks for cheap and get in. The locks I wouldn't want to keep as there is not telling who the former tenant gave keys to so we would just change the locks and count it in the cost of turning the units.

    If the tenant has vacated and really left nothing but trash in the unit document and take pictures etc. with date and time. Most states have personal property disposal laws and if over a certain amount of property is left most attorneys will tell you to pursue eviction to be safe.

    No legal advice. Every state has little quirks to the landlord tenant law so what info I have posted might not be 100% for your area. I have completed a lot of evictions as a landlord.

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  • Jack Bobeck
    SFR Investor · Jacksonville, FL · Member since 2012 · 285 posts · 83 votes
    13y

    Here in Jacksonville, I see this all the time. In fact, just had some ladies leave at the end of August, gave me 2 weeks notice, and my lease stated they had to give me at least 30 days notice to vacate. So they will lose the deposit AND I am planning, although I realize I will probably never see it, to assess fees for maintenance, carpet, cleaning to the 3 large credit companies, so that future landlords or credit agencies will see the outstanding charges, then I will turn over these expenses to a contingency collection service. Let them find the people and squeeze them for the money. Of course the best way to keep from having this issue is to properly vet and screen all prospects.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    13y

    @Jack Bobeck

    how do you report to the big three? I assume you must be a member? Yearly fees? Thanks!

    1Reply
  • Sam Leon
    OP
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    13y

    Joel you may be right I probably will not be able to recover anything except for the security deposit (1 month) I am holding.

    I am still trying to get a hold of the tenant to see what happened. I don't have any idea if the phone or cable are still on or under his name. Electric, water and sewer are paid by HOA. I also don't know if I get any mail for him where it should be forwarded to, heck I can't even get into the mail box now until I have a locksmith come fix it.

    The rent is not structured as a "monthly" rent. It was written as a lease for 12 month for an amount of $11,450. The payment of this $11450 is done by 12 installments of $950 each month. But that's not as important as getting a hold of him and finding out what happened.

    0Reply
  • George Paiva
    Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
    13y

    Be lucky that they left willingly and that you didn't have to go through eviction proceedings. Clean up the place and put it back on the rental market and move on. Write off the month or so you lost rent and keep the wheels moving as this is just another cost of doing business.

    3Reply
  • Aly W.
    Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    13y

    I was just going to post what @George Paiva did...it's not relevant why they left, just be happy they left quickly and without serious damage. Clean up, keep the deposit, document the condition, change the locks, and re-rent.

    0Reply
  • Bryan Davis
    Grand Prairie, TX · Member since 2013 · 70 posts · 7 votes
    13y

    I had a similar situation where an owner finance buyer abandoned a property that I was selling to him. I was able to track him down to get a quitclaim out of him in order to avoid the costs of a foreclosure but in spite of my efforts, recovering any costs out of him was a waste of resources. It stinks that he bailed on you but sometimes even rational people do crazy things. Clean it up and get it back on the market. I DO like the idea of reporting to the big three though, I'd never thought of that. Thanks @Jack Bobeck !

    0Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    13y

    I echo what George said. He did you a great favor by getting his butt out in a hurry (assuming that he left it in pretty good shape). Look at what it could have been. He could have stayed in there and gotten behind, and then you could have had the cost to evict him - while he's still getting further behind. This could have drug on out for months. Thank your lucky stars that he's gone, get his trash out, and re-rent the thing.

    0Reply
  • Ben Skove
    Cincinnati, OH · Member since 2013 · 292 posts · 81 votes
    13y

    Even though he's moved, mail your security deposit notice and other material to his last known address (i.e., your rental.) Generally, you're required to do this (depending on the state.) Endorse the envelope with "Address Service Requested". If there's a forwarding address, not only does the mail get forwarded to it, but you're notified as to the new address.

    USPS Endorsements

    1Reply
  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    13y
    Originally posted by George Paiva:
    Be lucky that they left willingly and that you didn't have to go through eviction proceedings. Clean up the place and put it back on the rental market and move on. Write off the month or so you lost rent and keep the wheels moving as this is just another cost of doing business.

    +1

    0Reply
  • Jack Bobeck
    SFR Investor · Jacksonville, FL · Member since 2012 · 285 posts · 83 votes
    13y

    @John Thedford You personally cannot report the debts to the big 3 credit agencies, you need to submit them through an attorney or collection agency. I use Rent Recovery Service, which is also used around the country by Apartment Companies, LINK. You can either do the flat rate recovery method or submit to them for each to receive a percentage. I have found that the people who move out in the middle of the night have no money, so I just send the expense amounts to them and do the 50/50 deal, if we get something great, but if not, they can go after the ex-tenant for it.

    0Reply
  • Matt LavinderPro Member
    Real Estate Investor · Bristol, TN · Member since 2010 · 59 posts · 31 votes
    13y

    @Jack Bobeck thanks for the link. Do you have to take any extra legal steps before submitting to a collection agency that reports to the credit bureaus?

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    If you're going to be a landlord this is going to happen. Its just part of the business.

    In a similar situation I was advised by my attorney to walk through the property with another person and video the place. Hang onto the video in case you end up in court. Then clean and re-rent and move on. If you don't have an attorney, now's a good time to find one and have a chat.

    Send all correspondence to the last known address. That's your property. Use the endorsements @Ben Skove mentions. I've sent things twice, once with Address Service Requested and once with Returns Service Requested. File away the unopened envelopes if they're returned.

    2Reply
  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    13y

    Where did this tenant work? If they are still employed, you could collect on a judgement by garnishing their wages. Of course, if you rent it quickly, you would not have much of a loss, so it would not be worth all of that.

    0Reply
  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    13y

    Sam,

    I went through something similar a few weeks ago. At move in I explained move out as it is outlined in the rental agreement, but they couldn't come up with rent, got scared, and left quickly. Unfortunately, without any notice at all. We had no idea they were gone for awhile. But still better off than eviction or cash for keys, when they go willingly.

    We finally reached them (using their unforwarded mail as leverage to get an updated address) and they can't understand why they owe us money instead of getting a deposit back.

    If you inherited the tenant you may not have an application with emergency contact references, which is another avenue to try to find them. I agree with everyone else that re-renting the unit is the priority though.

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  • Sam Leon
    OP
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    13y

    OK, I went and cleaned up the property, changed the locks and yet, the mailbox is continuing to fill with mail going to him. So obviously he did not leave a forwarding address.

    So what do I do with his mail without knowing where he is?

    I have not been able to find him, no idea if he is even still in town.

    Worst yet, amongst the mail going to him are bills from Florida Power and Light, Directv, BellSouth, may be another one from internet services? I don't know.

    I can switch the FPL services to my own account, no problem. Could do that online.

    Now can I open his bills to see what they look like? If I am going to call these company to terminate services I need his account number etc...yet those are HIS mail. I have no place to forward these bills to...and I don't want to pay his bills.

    0Reply
  • Wes Eaves
    Real Estate Broker · Brandon, FL · Member since 2008 · 283 posts · 64 votes
    13y

    I would not recommend opening his mail. You can write "RTS" on the envelope in red ink and cross through his name and address (your rental). I tried to locate a tenant by mailing a letter with "Return Service Requested" but it was still delivered to the address and my current tenant mailed it back to me.

    I would be careful and stick to the abandonment laws very closely because you can get burned if you don't file and complete the eviction process. The eviction process is not that long or expensive in Hillsborough County, especially if it is uncontested. Also, you can file an eviction AND get awarded a judgement without knowing where the tenant is. The tenant can be served by a processor placing the documents on the front door. In my county, unless the tenant is served in person you can't be awarded any monies.

    Advice I was given from other LLs, during my eviction process, was to move on and don't waste time trying to collect as the chances are extremely low and there are additional out of pocket expenses you will incur with a low chance of getting paid.

    I'm not a lawyer, however, this is my experience from my last eviction process.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    @Ben Skove and @Jon Holdman gave solid advice.

    You cannot open the mail legally. Use the USPS to return the mail; don't just cross put the address - you also have to cross through the bar code at the bottom of the mail so that it doesn't just come right back.

    This tenant sounded responsible to a degree, so it might be worth pursuing a money judgement against him. But to get that, usually you will first have to have the tenant served the lawsuit in person, and that means first finding the tenant ...

    0Reply
  • Sam Leon
    OP
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    13y

    I am not trying to get go after him for money at this point.

    I just don't want these utility companies to come after me for the unpaid bills, or worse yet, file a lien against the property.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    I doubt that DirecTV, internet providers and BellSouth can file a lien against your property. Typically, state or local law provides for when a utility can place a lien on property; typically, the utility must be provided by some government body for that to occur when the utility customer is not the property owner. Whether Florida Power can place such a lien will depend on whether that is a government provided service; I suspect it isn't, so I doubt you will be hit with a lien there.

    0Reply
  • Sam Leon
    OP
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    13y

    @steve thanks.

    OK so I don't need to worry about these bills going to nowhere once I send them back?

    I guess I am a bit worried because I had some pass experiences, but with different scenerios.

    One property I purchased in Miami in 2005, I got a water sewer bill which the utility company insisted I pay off or else they won't start my new service request. It was a left over bill from the previous owner. But since it was a small amount like $67, I called up my title co and they took care of it.

    Another house I was looking at few years ago, city of Hollywood in Florida, the owner rented the house out and eventually had it foreclosed. The owner kept current with the HOA payments but the tenant had erected an illegal shed. The owner had no knowledge of the shed but the city issued a citation. The citation required them to remove the shed. I don't know if the tenant intercepted the mail from the city, or the owner had knowledge, eventually the citation escalated to the point where the city says from this date forward failure to remove the shed will result in $230 PER DAY FINE. The property got foreclosed and by the time put on the market almost a year later, they owed the city 87 thousand dollars. The bank insists the buyer takes care of the fine, I negotiated and went back and forth and eventually backed out of the deal, and here is the action of the tenant really hurt the property owner who was an out of state guy doing this with his remote control.

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