Tenant moved out early and has stopped paying rent

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Tenant moved out early and has stopped paying rent

Kris Chavious
Investor · Charlotte, NC · Member since 2017 · 12 posts · 1 vote

Hi BP Family,

I have this situation and I wanted to know your thoughts... In November, my tenant sent me an e-mail saying that they were moving out on Dec 2, 2018 because they are buying a house. They said they were planning to buy in July of 2019 when their lease expires but the floor plan they wanted became available earlier. They also stated that they know that they are responsible for paying the rent until I find a new tenant. Needless to say, they have moved out and have not paid the rent. The law states just that, the tenant even thought they have moved out is still responsible for rent until the landlord finds a suitable tenant. 

Has anyone experienced this before? I'm trying to figure out my options... 

Can I technically still file for eviction even though they have moved out? Just to get it on record and file a civil suit in small claims court? 

Hire a Collection Agency to go after the past due rent and they can file a collection claim on my behalf with all 3 credit bureaus. 

I still have the security deposit because they are still within the terms of their lease agreement until I find a new tenant. 

What are your thoughts? Just curious to see if anyone has experienced something similar. 

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Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y

@Greg H. i am an advocate for fair interactions wheter with tenants, customers, landlord, friends, etc. 

This tenant gave notice. Then moved. The LL needs to get the unit rented asap. 

I find it “mean spirited” to go after tenants aggressively as advocated on BP quite often, unless there is some reason (ie tenant destroys unit etc) 

Just chalk it up to landlording and move on to a better tenant 

Note: i did not mention the deposit at all. The deposit should be used to mitigate loss as per the local laws. So if it can be used to pay for the lost rent then use it for that. My comment was soley about evicting and filing suit againt a tenant that is already gone. 

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  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    7y

    What software do you use to manage properties? Several of the software companies intergrate collections. We report credit bureau. When tenants do this to my clients they end up getting negative hit to their score on top of the judgement I will place on them. 

    McCaw Property Management4.4905 Reviews
    WebsiteView Page
    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    I would clean the unit and get it leased asap. Legally i beleive this is the path you must take as you cant just not try to rent it  

    Filing eviction and collections is just mean spirited. They gave you notice in November so i would use that date to begin the 30 day period and refund the balance of their deposit 

    2Reply
  • Jason E. Smith
    Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
    7y

    Hey Kris, the turn key provider I just spoke with the other day said there is no vacancy in investment property so you must be mistaken. Lol. All jokes aside, the first thing I would do is get suitable legal counsel before doing anything. One wrong move in handling this yourself and all the money you thought you were “saving “ by not hiring property management will quickly be gone. I haven’t personally had to deal with this situation because I have professional management for my properties so I can’t personally advise. But if you contact Kevin Stringari at Bottom line realty and management I’m sure he could help. Best of luck!!  

    0Reply
  • Robert Ombres
    Real Estate Broker · Asheville, NC · Member since 2016 · 138 posts · 63 votes
    7y

    @Kris Chavious are you actively seeking a new tenant? Why haven't you replaced the tenant?

    0Reply
  • Kris Chavious
    OP
    Investor · Charlotte, NC · Member since 2017 · 12 posts · 1 vote
    7y

    Thank you everyone for your replies. 

    @Kyle Mccaw  I use Cosy to manage the property. That's interesting. I'll see if they have that option. 

    @Mary M.

    That is the plan. With the holidays things have been slow but I don't see it being vacant much longer. I absolutely do not want to evict her or ruin her credit so my plan is to work with her to see how we can avoid it. I don't see it as mean spirit, moreso just business. If this happened at an apartment community these would be the actions they would take. I do believe in working with people first to come up with an resolution that benefits both parties when possible. 

    @Robert Ombres Yes I am actively looking to have it rented. I think it's just slow with the holiday. Most of the people requesting viewings don't have good credit. With some recent negative activity. I'm hoping in a few weeks we can get it rented. It's a great rental in an awesome community. 

    Thanks again everyone for your input. I really appreciate it and happy new year!

    1Reply
  • Brian Corbett
    Residential Real Estate Broker · Greenville, NC · Member since 2015 · 164 posts · 90 votes
    7y

    In NC you are allowed to file “eviction” in small claims court in this case since they have an existing lease agreement with you.   A little piece of advice here:  file with the property address and their new address for the deputy sherriff to serve the filing paperwork.  If they are not served personally or show up in court, you will only get possession of the property and not any sort of money judgement.  

    1Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Kris Chavious What does your lease say about early termination?   Just because they gave you notice should not allow them to void the lease agreement.  It's not mean spirited to collect what you are due. Follow the law on withholding the security deposit.  In Georgia there are penalties for not doing so.  Get the unit rented and sue the tenant in small claims court for any damages and loss of rent.  Since they recently purchased a house it sounds like they have decent credit and you should be able to collect on a judgment.   The clerks at your small claims court are usually helpful it will be a good learning experience.  Good Luck and Happy New Year

    1Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    7y
    Originally posted by @Mary M.:

    I would clean the unit and get it leased asap. Legally i beleive this is the path you must take as you cant just not try to rent it  

    Filing eviction and collections is just mean spirited. They gave you notice in November so i would use that date to begin the 30 day period and refund the balance of their deposit 

     Why is it mean spirited to send a tenant to collections ?  I get it that you advocate for tenants but both parties signed an agreement and both should live up to the agreement.  Why should a landlord take a loss because a tenant wants to buy a house ?

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    @Greg H. i am an advocate for fair interactions wheter with tenants, customers, landlord, friends, etc. 

    This tenant gave notice. Then moved. The LL needs to get the unit rented asap. 

    I find it “mean spirited” to go after tenants aggressively as advocated on BP quite often, unless there is some reason (ie tenant destroys unit etc) 

    Just chalk it up to landlording and move on to a better tenant 

    Note: i did not mention the deposit at all. The deposit should be used to mitigate loss as per the local laws. So if it can be used to pay for the lost rent then use it for that. My comment was soley about evicting and filing suit againt a tenant that is already gone. 

    4Reply
  • Account Closed
    Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y

    I would just clean it rent it and then send a bill for the most rent until it was rented to the people that broke their lease without cause.  

    Of course file a small claims action or whatever else you need to do.  It’s a business and they have to stand up to their end of the business.  

    2Reply
  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y
    Originally posted by @Mary M.:

    I would clean the unit and get it leased asap. Legally i beleive this is the path you must take as you cant just not try to rent it  

    Filing eviction and collections is just mean spirited. They gave you notice in November so i would use that date to begin the 30 day period and refund the balance of their deposit 

     I'm with Mary.  This happens all the time. Did the tenant trash your house? It could always be worst. Going after them in court is a complete waste of time.  I'm not trying to waste time and show whos right or whos wrong or who broke the lease.  Your time should be more valuable than this. 

    Life is short,  Just my 2 cents.

    2Reply
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    7y

    @Mary M. is a good egg. More of us should be like her. 

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    7y

    @Mary M.

    I do not have a problem with moving on, I have a problem with those who's situation is different being characterized as "mean spirited"

    This is not a need for the tenant to move, this is a want.  Unlike other threads where the tenant had cancer or going thru something, this tenant wanted to buy a house and knew they had a contract that required them to continue to pay rent until the landlord secured a tenant and thus failed to live up to an agreement twice

    I would ask this....does your philosophy go both ways ?  So if in the middle of a lease, the seller decided they needed to sell and gave the tenant notice to move(even with the lease in place).  Would you advocate that the tenant just move an incur the expenses to do so?  

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    @Greg H. landlords “break” leases all the time by offering cash for keys. 

    My comment about mean spirited is in regards to comments about going after a tenant that gave you a 30 day notice then moved. Going to court would cost more than the lost rent. It also would be  waste of time. I cant see a judge awarding anything to the LL beyond one months rent which the deposit will cover. I am assuming tenant did no damage. The LL needs to diligently work on re leasing to mitigate loss.  So given these facts, i conclude that the only reason one would “go after” this tenant was to teach them a lesson - which just seems mean spirited in this situation 

    1Reply
  • Kris Chavious
    OP
    Investor · Charlotte, NC · Member since 2017 · 12 posts · 1 vote
    7y

    Here's the thing, I don't believe she purchased a home. I have no proof but her forwarding address to the new home is a house that was never on the market. It could be a lease to own situation. I just believe if you sign a lease, you stick to the contract unless something happens where you really need to break it.

    She has asked to be put on a payment plan to pay all debts owed. I plan to talk to her this evening to discuss a resolution.  I'm sure I will have a lease signed by the end of the month.  I love all of the feedback and perspectives! 

    0Reply
  • Quanda Renee Turner
    Member since 2018 · 1 post · 0 votes
    7y

    What is the software companies that integrate collection?

    RINIQRental

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    7y
    Originally posted by @Mary M.:

    @Greg H. landlords “break” leases all the time by offering cash for keys. 

    My comment about mean spirited is in regards to comments about going after a tenant that gave you a 30 day notice then moved. Going to court would cost more than the lost rent. It also would be  waste of time. I cant see a judge awarding anything to the LL beyond one months rent which the deposit will cover. I am assuming tenant did no damage. The LL needs to diligently work on re leasing to mitigate loss.  So given these facts, i conclude that the only reason one would “go after” this tenant was to teach them a lesson - which just seems mean spirited in this situation 

     The tenant gave a 30 day notice in the middle of a year commitment so they could buy a house.  Again, you avoided the question, if the landlord "wants" to sell should the tenant accommodate as well? Seems that is only fair if agreements mean nothing

    Of course the tenant needs to mitigate the loss. However, you fail to account for several factors:

    Not every market is hot and can be rented immediately

    Some landlords are not local and pay leasing fees

    The tenant initially agreed to pay during the vacancy and then failed to do so

    Personally, I am all for tenants buying a home or moving if situations change.....as long as I do not incur a loss for their "wants".  Emergencies are a different animal

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    I am not avoiding anything. I dont feel like debating this.  Landlords have power Tenants do not.   

    In this situation i would keep the deposit and rent the unit asap. 

    1Reply
  • Matt Burns
    Cary, NC · Member since 2011 · 34 posts · 16 votes
    7y

    Hi Kris, I'm an NC property manager and can assist you. 

    If the tenant returned possession to you (the keys) then the LL is obligated to put the property back on the market. The previous tenant is responsible to pay for rent (and maybe utilities) until the property is occupied by a new tenant. The security deposit can be used towards the previous tenants' balance. Any balance exceeding the deposit can be sent to collections or settled in small claims court. My advice is to get the property rented and then get what you can from the previous tenant. Collections and small claims aren't worth the trouble. Hopefully you'll get a rent increase from the new lease. Good luck!

    1Reply
  • Kris Chavious
    OP
    Investor · Charlotte, NC · Member since 2017 · 12 posts · 1 vote
    7y

    @Matt Burns Thanks! I had a showing today that's promising so fingers crossed. I do plan to keep the security deposit that will cover December Rent and I'll work with the old tenant on a payment plan for the Jan rent. It sucks but that's what we have to go through. At the end of the day, the Pros always exceed the cons! Thanks again!

    0Reply
  • Matt Burns
    Cary, NC · Member since 2011 · 34 posts · 16 votes
    7y

    @Kris Chavious good plan! It'll work out. Always keep moving forward. And screen your prospects well!

    0Reply
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