Landlord Canceling Lease--Obligations
7 Replies
Nancy P.
from Naperville, Illinois
posted about 1 year ago
This is just a "what if" scenario. We are probably moving back to the US next year. Currently in US and the townhouse we downsized into is simply killing my hip. Steps to the front door, three times as many to back door (to carry in groceries.) On icy days it's really a pain. In the meantime, we have just had tenants sign a lease on a similar sized ranch duplex with a small yard. (I have a back patio that is 90% concrete, ugh.) They put down only security deposit, will pay first month's rent on 1/1/20 and move in. I find myself thinking wistfully that I'd like to move in THERE and out of HERE. I'm not going to do it, there is too much in the air for us just now. (As in we might not be moving back here next year.) I'm just idly wondering what legally would be required if I did do it. I once had a tenant pull out three days after putting down her deposit. (Job transfer she claimed.) I tried to keep her deposit as she cost me marketing time, she took me to small claims and won. Judge said she didn't move in, so I really didn't suffer damages. (Someone ended up moving in a week later so he wasn't wrong.) I'd have to return the deposit, of course. But could I be legally forced to give them the promised property? Can landlords cancel as easily as that previous potential tenant did? Again, just idly wondering. Anyone ever done it?
Matt Higgins
Property Manager from Blaine
replied about 1 year ago
A contract is a contract In my opinion and in the eyes of the court. On the day that lease starts you would be trespassing on their leasehold estate.
The solution is to ask, offer up your current townhouse, or try to buy them out of the lease. Usually when a tenant breaks their lease with us I don’t sue them for damages but I do keep their damage deposit.
Short answer yes, when you sign a lease with a tenant you can not change your mind
Ned Carey
(Moderator) -
Investor from Baltimore, MD
replied about 1 year ago
@Nancy P. I don't know if your state tends to be more conservative or liberal. In general I think most courts tend to side with the tenant.
John Woodrich
Flipper/Rehabber from Minneapolis, MN
replied about 1 year ago
You will want to talk to an attorney in your state if you are considering this as an option but you have a legally binding contract when you have a signed agreement and collect the deposit. If you did back out you would be in breach and could be liable for any damages they incur which could be finding a hotel and storage until they can find a place to rent.
In your initial example they were in breach of the contract however the judge ruled that you had no real damages. If it took you another month to rent the unit you may have been awarded part of the deposit to recoup for damages but the court wasn't there to enrich you.
I am not an attorney, my comment is based on my understanding of contract law.
Matt Higgins
Property Manager from Blaine
replied about 1 year ago
Other possible problem. Let’s say you lease a property and take deposit because a unit was coming vacant, but the current tenant refuses to leave and becomes a holdover tenant. Similar situation to the one asked in this post. I wonder how that situation plays out? I’m glad that I haven’t had that one yet. Can’t lease a property that you don’t have possession of
Nancy P.
from Naperville, Illinois
replied about 1 year ago
I'm in Illinois, but not Cook County. If I were to do this, it would be BEFORE the lease began. Depending on the tenant's current situation, it might or might not be a hardship for them. (I happen to know their current lease ends January 31st, If I were to break it today...is it really a hardship? I would assume a little more leaning towards the tenant's rights here. But in the case above, the judge didn't even ASK if I had found a tenant when she took me to small claims court, about 2 1/2 months later. Just awarded it to her. So I'm not going to do it, I'm not a jerk even if I knew I was coming back here soon. Was just idly wondering. Thanks for the responses.
Michael King
Rental Property Investor from St. Louis, MO
replied about 1 year ago
Is the one you're living in in the same area as the one you want to live in? Talk to them, maybe they'd want the town house instead? Especially if you have physical problems, they may help you out. You won't get what you don't ask for.
Nancy P.
from Naperville, Illinois
replied about 1 year ago
It's about five miles away. Same town, we are close to downtown, and the train station. But they have Golden Doodle so I'm sure they'd want the yard. Again, not going to do it....just resolved that I'm not spending my old age in THIS house. The stairs seem to be done wrongly...they are quite narrow front to back AND steep. Stairs in general don't hurt nearly this much.