Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
I just received a text from one of my tenants and I need to know how to respond!
She said, “Any chance you have someone wanting to rent? I wish I taken the 6 mo instead of 18. Things change so much. I’m starting a new job in rusk. Pay decrease. I’m not gonna break lease but if we can work out any way out of it best.”
How would you respond to that?
Background- The property is in TX. She just paid her rent for this month today. She is 6 months into an 18 month lease and this lease is super tight. I will attach some pics of some of the language below.
She hasn’t proved to be the best tenant so I don’t really want her but it could take 1-4 months to rent AND we are in the process of doing a refinance. All the leases have been turned over to the bank. I know if I took her to court I wouldn’t get all she would owe me for breaking it.
Our lease says that she would NOT get her security deposit back for breaking the lease. Should I give her an option to leave early if she paid 2-3 months rent? If I do that does that substitute for “satisfying” the lease and then I can’t get my security deposit from her or can I take both?
Also, since I have received it in text, do I ask her to send the request via email? Do I respond via email? Do I talk to her in person?
I have attached images of pertinent pieces of our lease below.
Ultimately it is up to you, but in this situation, I'd let her break the lease with proper notice (30 or 60 days). Tell her she's on the hook for the rent until you find someone and then do your best to get a new tenant ASAP. Her knowing that she's on the hook for rent until you find someone should make her more open to showings and keep the place in good condition.
Investor · United States · Member since 2015 · 415 posts · 487 votes
7y
If I'm reading correctly, she has already paid April rent, would move out at the end of April, and just offered to give you her $2,000 deposit as an early termination fee. You could start looking for a new renter immediately. I usually fill my units in a week or two... worst case scenario 2 months.
Honestly, compared to how some renters break a lease early (wait until they're behind on rent, move out without cleaning, little notice, etc.) I'd say that's a pretty great situation for you. If it were me I would take her offer, get it listed for rent right away, and move forward.
Rental Property Investor · Littleton, CO · Member since 2014 · 150 posts · 114 votes
7y
I would ask for one months rent penalty (you have to do work to market and find a tenant) PLUS ask her to pay rent/utilities until it is rented. You may suggest to her that if she vacates in the middle of the month and leaves the unit rent-ready the likelihood of it getting rented for the next month will be much better as most people like to move in around the 1st.
Also keep the amount of repairs only from her deposit. If she did $500 worth of damage in 6 months be relieved she is leaving.
Reply clarifying that her deposit is $2000, not $2500 and if she takes option 2, then you need to know by tomorrow.
She's telling you that she doesn't have the extra money, so your best bet is to keep the $2000 deposit realizing there are some repairs that need to be done (guessing damages from her vs regular maintenance). It sounds like she may be moving sooner than the end of April, so that would give you time to do the repairs (get her to sign papers saying she's moved out) and get it rented for May 1.
You still come out ahead with that option even with the repairs.
I just received a text from one of my tenants and I need to know how to respond!
She said, “Any chance you have someone wanting to rent? I wish I taken the 6 mo instead of 18. Things change so much. I’m starting a new job in rusk. Pay decrease. I’m not gonna break lease but if we can work out any way out of it best.”
How would you respond to that?
Background- The property is in TX. She just paid her rent for this month today. She is 6 months into an 18 month lease and this lease is super tight. I will attach some pics of some of the language below.
She hasn’t proved to be the best tenant so I don’t really want her but it could take 1-4 months to rent AND we are in the process of doing a refinance. All the leases have been turned over to the bank. I know if I took her to court I wouldn’t get all she would owe me for breaking it.
Our lease says that she would NOT get her security deposit back for breaking the lease. Should I give her an option to leave early if she paid 2-3 months rent? If I do that does that substitute for “satisfying” the lease and then I can’t get my security deposit from her or can I take both?
Also, since I have received it in text, do I ask her to send the request via email? Do I respond via email? Do I talk to her in person?
I have attached images of pertinent pieces of our lease below.
Appreciate your advice, thank you in advance!
Generally you have to weigh whether its better to terminate a lease or hold someone to the lease. If your tenant is having problems paying the lease, your best scenario might be to settle for a months rent. Often tenants are coming to you because they are having financial trouble, do you really want to deal with a tenant who is unable to pay?
Dont allow the deposit to be used as the lease breaking fee.
By rights (I am not an attorney, nor is this legal advice), in Texas you are allowed to keep charging the tenant until you are able to find an acceptable new tenant. But also remember the courts you will be walking into for the most part are pretty landlord friendly, and if the tenant has nothing, it might be nearly if not completely impossible to collect on any amount that they dont pay.
Also remember you ARE required by state law to minimize damages to the tenant who moves out, and you are not allowed to double dip, ie charge the tenant who is moving out and charge a new tenant at the same time.
Are you sure it will really take you 3 or 4 months to lease your property? I know most places in Texas it usually takes only a few days, ESPECIALLY in the spring.
My advice is to work with your tenant to transition the place, keep at least a months rent. We sometimes settle, or sometimes work with the tenant and tell them we will cancel the lease (with a termination fee) if they help us get it rented. IE keep the house clean, let us show it etc.
If you work with the tenant, and treat them fairly, you often get a positive reaction from your tenant, you can end up minimizing the cost of turning the property, less damage, and you can get a new tenant (and you might even be able to raise the rent.
@Albert Hasson thank you for that info. My question wold be, can I keep her holding deposit on top of what you said. If I find a tenant and she has to pay for rent and utilities until a qualified tenant is in, I believe that my lease states I can still keep her security deposit. Thoughts?
If you use a realtor, there is a standard form for breaking the lease and you can include the exact amount of what the charge would be. DO NOT USE the deposit as the fee for breaking the lease, then they move out and there is 0 reason for the tenant to clean the place or worry about damage. make it a separate payment.
If I'm reading correctly, she has already paid April rent, would move out at the end of April, and just offered to give you her $2,000 deposit as an early termination fee. You could start looking for a new renter immediately. I usually fill my units in a week or two... worst case scenario 2 months.
Honestly, compared to how some renters break a lease early (wait until they're behind on rent, move out without cleaning, little notice, etc.) I'd say that's a pretty great situation for you. If it were me I would take her offer, get it listed for rent right away, and move forward.
Yep, spot on, work with her, tell her she is on the hook for the lease, and the best thing both parties can do is to work to get it released. Mention she IS required to pay the lease in full, but that you want to work with her as much as possible to find a mutually beneficial solution, so you need to get it listed and shown immediately.
Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
7y
Just wanted to update everyone! I renegotiated with her to $2,500 with us allowing the deposit ($2,000) towards the final amount. She jumped at it and is going to give me an additional $500 and also vacate before the end of the month as well as make sure all is clean and will allow me to begin showing. I feel that I was very lucky in this situation.
I believe some of it was luck, but on the other hand it is how you structure your lease from the beginning, how you set the tone with your tenant from day 1. Do you let them walk over you or do you hold the line on the little things, so that when big things come they know where you land? Keep track of all paperwork and create a paper trail. Then the utmost important thing, NEVER show your emotions or get emotional with your tenant. Yes they are breaking a lease, but always always try to think WIN WIN, walk in their shoes while at the same time do not get walked over. Stay professional, positive and upbeat and in the end you mitigate your risk of having a disaster!
Thank you for all who chimed in and gave guidance!! Much appreciated!
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
I agree with @Theresa Harris and @Albert Hasson and others. Based on what you're describing I would help her if she would help me. She keeps the place extra clean and helps show it. In return you let her break the lease early if/when you find a new tenant. Any costs you incur would come out of her deposit but keep the prospect of getting some or all of it back in the front of her mind to keep her cooperation.
If a new tenant moved in the day she moved out and I suffered zero extra costs I would either refund the deposit or tell her in writing after she moves that I would refund it after the replacement tenant fulfilled her obligation to the remaining portion of the original 18 month lease. i wouldn't hold her responsible for the new tenants damages but if I let her out of the lease and the new tenant fails to fulfill the remaining months the original tenant was obligated to and I can't recover from the new tenant like I might have been able to recover from her then I'd want her deposit for not fulfilling her 18 months.
Also, nice idea posting the lease portion. That way, we can see and comment on it if needed.
I agree with @Theresa Harris and @Albert Hasson and others. Based on what you're describing I would help her if she would help me. She keeps the place extra clean and helps show it. In return you let her break the lease early if/when you find a new tenant. Any costs you incur would come out of her deposit but keep the prospect of getting some or all of it back in the front of her mind to keep her cooperation.
If a new tenant moved in the day she moved out and I suffered zero extra costs I would either refund the deposit or tell her in writing after she moves that I would refund it after the replacement tenant fulfilled her obligation to the remaining portion of the original 18 month lease. i wouldn't hold her responsible for the new tenants damages but if I let her out of the lease and the new tenant fails to fulfill the remaining months the original tenant was obligated to and I can't recover from the new tenant like I might have been able to recover from her then I'd want her deposit for not fulfilling her 18 months.
Also, nice idea posting the lease portion. That way, we can see and comment on it if needed.
I don't think you could do that in Texas, because you have 30 days to after the tenant has moved out AND provided you with a forwarding address to return the damage deposit and provide documentation of any money that has been withheld.
Property Manager · Castro Valley, CA · Member since 2016 · 212 posts · 110 votes
7y
In the area I am in, we typically ask the person to post an ad and start showing the unit to try to find someone to take over the lease. That person is motivated to find someone and get their security deposit back.
Have potential applicants fill out your application of course, but the current tenant can show the unit and hopefully make it a decent situation for both of you.
We would have the tenant still responsible for rent until it gets rented. It is hard to get much out of someone beyond their security deposit, but a lot of times a unit is rented and we have a new tenant on a new lease.
*Glad to hear it sounds like you solved that particular situation.
I agree with @Theresa Harris and @Albert Hasson and others. Based on what you're describing I would help her if she would help me. She keeps the place extra clean and helps show it. In return you let her break the lease early if/when you find a new tenant. Any costs you incur would come out of her deposit but keep the prospect of getting some or all of it back in the front of her mind to keep her cooperation.
If a new tenant moved in the day she moved out and I suffered zero extra costs I would either refund the deposit or tell her in writing after she moves that I would refund it after the replacement tenant fulfilled her obligation to the remaining portion of the original 18 month lease. i wouldn't hold her responsible for the new tenants damages but if I let her out of the lease and the new tenant fails to fulfill the remaining months the original tenant was obligated to and I can't recover from the new tenant like I might have been able to recover from her then I'd want her deposit for not fulfilling her 18 months.
Also, nice idea posting the lease portion. That way, we can see and comment on it if needed.
I don't think you could do that in Texas, because you have 30 days to after the tenant has moved out AND provided you with a forwarding address to return the damage deposit and provide documentation of any money that has been withheld.
Yep and when a LL provides written line item of "unpaid rent" as a deduction in deposit, its a slam dunk case for a contingency fee plaintiff attorney or legal aid, etc.
These low dollar amounts really just come down to being reasonable, if your tenant is communicating in good faith, don't try to be greedy.
Investor / Real Estate Agent · Aurora, IL · Member since 2015 · 170 posts · 42 votes
7y
@Jonathan G. I'd let her walk, it seems like your tenant will struggle to pay you due to pay decrease, I'd tell her you need at least 30-60 days notice, if you find a tenant she can have her security deposit, if you do not then she will not because you're out 1 month's worth of rent.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
I agree with @Bart H. In my area I have 45 days. So I would do what I said within 45 days, telling the tenant I was holding keeping the deposit until the original 18 month term was fulfilled but letting the tenant know I'd refund it even thought the tenant didn't fulfill the lease - if the replacement tenant fulfilled the lease instead of the original tenant.