can a landlord cancel lease after signing?

[Heshan Abeywickrema]

Hi all,

I signed a lease for new tenants starting (7/18). There were a few question marks in the application but i decided to approve since both of the applicants were teachers and the one of them had a teenage child. The criminal background check came up clear but I found out that the male tenant had case against him that caused him to loose his job at the school due to inappropriate behavior. I unfortunately signed the lease without asking for paystubs especially since the female tenant is just starting her job this week. They paid first months rent via paypal saying that my zillow rental portal is having issues. They are yet to pay the deposit. Can I terminate the lease and pay him back? I used to live in the property and are in very good terms with the previous neighbors, and don't want to risk anything given the shady past/current behavior from the tenants. 

Thanks in advance.

Heshan.

[Ty Coutts]

This is a complex situation with potential legal implications, and let me preface this by stating that I am not in any position to give legal advice or any sort of attorney. As a landlord, you have signed a legally binding lease agreement, which makes terminating it challenging without proper cause. The fact that you discovered concerning information about the male tenant's past after signing the lease complicates matters. While the criminal background check came up clear, the undisclosed case that led to job loss due to inappropriate behavior is concerning. The lack of income verification and the deposit payment issue are also red flags. However, these factors alone may not be sufficient legal grounds to terminate the lease unilaterally. Before taking any action, it's crucial to consult with a local real estate attorney who is familiar with NE landlord-tenant laws. They can review your specific situation, the lease agreement, and advise on the best course of action. This may include exploring options such as negotiating a mutual agreement to terminate the lease or determining if there are any lease terms or local laws that might allow for termination. Remember that improperly breaking a lease could expose you to legal risks, so professional legal guidance is essential in this situation.

[Russell Brazil]

You signed the lease. You are bound to it. 

[Bill B.]

Yuck!  Please hire a property manager. 

DEFINITELY don’t let them move in before you have the security deposit. NEVER sign a lease until you have all the money, including security deposit. 

Check your Zillow portal. Does it work? Taking rent through PayPal can cause problems with your PayPal account and can sometimes be rescinded. If they move in, haven’t paid the security deposit and rescind the PayPal money what’s your next step? You have zero dollars and your place is occupied. 

Find out from your new PM if the lease is official before the security deposit is received because you signed it. Do they qualify I just her income? Did he low his job before you signed? 

Just YUCK. But don’t make it worse by letting them occupy with nothing invested in a property they can’t afford. OR by violating any laws and illegally preventing them from moving in. 

Ps. MAKE SURE all utilities are in the tenants name before they move in. This definitely sounds like a case where you will get no money back if you have to chase it. And it may be illegal to turn off the utilities once they move in.  I truly hope it works out. But please hire some professionals. Hopefully it’s not already too late. 

[Alan Asriants]

Return the money and find a better applicant. 

Please make sure to do all due diligence 

[Theresa Harris]

Does the lease say that you need the deposit within a set period of time?  I find it odd that they'd pay rent several weeks in advance (assuming it is for Aug 1) as first month's rent would normally be due when they moved in (and before they got the keys).

[Chris Seveney]

@Heshan Abeywickrema

What’s the lease say? We have language that lease is not valid until receipt of deposit.

But they could say $ is deposit not first months rent

Did they fill out an application? Did they lie about any of those questions?

End of day this is a legal issue to review with your attorney but if they have not met the terms of the lease by giving deposit and rent then I absolutely would not let them move in tomorrow

[Heshan Abeywickrema]

Hi all, thanks for the input, the tenant did make the first payment and posted the deposit through zillow. Its a 10 month lease. So hoping for the best now. 

[Michael Smythe]

@Heshan Abeywickrema if they haven't paid the SD are they in violation of the lease terms?

If so, you can cancel.

[Nathan Gesner]

Legally and morally, you should honor the contract, just like you would expect the renter to honor it. You could speak to the renters, explain what you found, and see if they are willing to step away.

In the big scheme of things, is the renter a danger to you, the property, or the community? Probably not. I wouldn't sweat it for ten months.

[Andrew B.]

You signed the lease and accepted payment, which makes it a legally binding agreement. However, I will say, I would much rather deal with the legal ramifications of giving them their money back and asking them to rent somewhere else, rather than deal with the legal ramifications of an eviction. I'm not giving you legal advice, but if I were in this scenario I would refund the money through paypal, (make sure you refund, not just send them money), and ask them to find a new rental. Then hope it goes away. Use this as a lesson that you need to learn how to screen better.

[Mackaylee Beach]

I suggest consulting with an attorney for advice.

It is also advisable to conduct thorough screenings and refrain from signing any lease agreements until all requirements and payments are received.