Can I Rescind An Offer To Rent?

Question

I knew that one of the 3 applicants was a smoker. I told the family via email that the property was NON-smoking and that there was to be no smoking on the property inside or outside - leaving them to smoke out in the street. They asked if they could have a designated smoking spot that wasn't out in the street. I don't trust they'll follow the rules. Can I tell them we're no longer offering the property to them to rent and refund the application fees? I don't want to get sued for discrimination of some sort. This is in Oregon btw.

Thank you for your answers in advance!

Michael

Thank you for your answers in advance!

Michael

Sergey A. Petrov · Answer

check Oregon and local rules on how long it takes someone to gain tenant rights. That could be your guideline for "you are no longer a guest and need to be on the lease" provision. Most standard lease templates should already have those clauses. It is fine for friends and family to come and visit, but, you are right, you don't want someone to just "become a tenant".

Sergey A. Petrov · Answer

@Michael Pilolla - did the mother say their daughter found a new place to live? Your lease likely already has a provision for “guests”. If it doesn’t, it should. You may not be able to prevent the daughter from moving in at which point she’ll need to be qualified and comply with the lease terms one of which is no smoking. Then you have a dilemma. I’d make it crystal clear upfront and let them know they’ll face eviction if the daughter moves in before she quits smoking or agrees to smoke off premises. Does the couple qualify on their own without the the daughter on the application?

Shiela R. · Answer

I have never owned property in Oregon. Landlord-tenant laws vary by city, township, etc. If it were me, I'd find a better fit and simply say someone else was more qualified, which is the truth.  I wouldn't even mention smoking.  Seems like a pandoras box but smokers are not a group protected by fair housing. Unless they are smoking mmj and on disability.

@Michael Pilolla just to give you some food for thought...Depending on the city and property I sometimes rent month to month to protect myself against a bad fit.  I had some tenants who complained about everything.  Keep in mind we had other units for years and no complaints so I simply raised the rent on the complainers.  Month to month only requires a 10 day notice.  They left, did not renew.  Certainly, there are ways to better prescreen so you can not even waste your time with smokers...best of luck!

Shiela R. · Answer

You are so welcome @Michael Pilolla! Is the place nice? I know that's subjective but just thinking if one couple loves it, couldn't it be worth it to wait for someone who is a better fit? I know, personally, I can tend to panic and then sure enough, the next call or email is a much better fit...I hope that helps!

Michael Pilolla · Answer

@Sergey A. Petrov

The mother said her daughter can stay living where she currently is. The parents really like the property. I just want to make sure the daughter doesn't worm her way in by staying only for a night or two and then it turns into a week here and a week there and before you know it she's living there.

The couple do qualify on their own.

I assume I can put in the lease agreement that if someone stays for any length beyond XX days (14 days for example) that we need to be notified in advance or the terms of the lease will be considered broken and tenants subject to eviction? Of course, nobody can smoke in or anywhere on the property whether they're visiting for 1 night or 10 day!

Michael Pilolla · Answer

@Sergey A. Petrov @Shiela Roberts thank you so much for the insight and help. I told them we were moving on. The 3 people involved are an elderly couple and their daughter. The daughter is the smoker. The mom called after I told them we were moving on and asked if her and her husband can rent it without their daughter.

Question: How can I rent to them and make sure the daughter doesn't end up moving in behind our backs? Can I write in the lease agreement that no one is allowed to stay there for more than 3 days at a time or something like that?

Thank you again! This is why I love BiggerPockets!!! :)

Sergey A. Petrov · Answer

Your rules are your rules. Either smoking or not smoking. Your “offer to rent” is contingent on those rules. If they can’t comply they haven’t “accepted” the offer (and cannot accept it without full compliance)

Can I Rescind An Offer To Rent?

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