Tenant moved out early…what do I do?

Question

Hi BP Community. I bought my first house hack, a duplex in Indianapolis, back in April. It came with an inherited tenant on one side who was originally on a year long lease but years ago was transferred to a month to month lease. I am living in and fixing up my side with the eventual plan to do the same to the other side. Well, the lease that came with the property/tenant noted that I had to give 60 day notice (see screenshot) to terminate the tenant's tenancy and that she likewise had to give 60 day notice if she wanted to end hers.

Well on May 29th I sent the notice for that she would need to be out by July 31st and she just up and moved out on May 31st in the evening. She states that she has surrendered possession and left the key in the mailbox. I want to know if she is still liable for rent as she did not give proper notice to end her lease? I believe this is the case, and at a minimum, l would think she still has to pay June rent. I have her security deposit, but it does not equal the amount for loss/unpaid rent, let alone the damages her unit has.

Does anyone have any experience with this? Do I, as the landlord, have a right in Indiana to hold her accountable for the rent as she is not fulfilling her contractual obligation through the lease? There is also a clause regarding breaking a lease early and a penalty for that...can I hold her to this (see screenshot)?

Finally, does anyone locally recommend reaching out to an attorney? First time going through this so not exactly sure what route I should take. Thanks so much!

Theresa Harris · Answer

She has to give 60 days' notice, so check your local laws as to the deposit rules (ie how long you have to give her written documentation of the deposit breakdown). Do an inspection and if there are no damages, say you are keeping the deposit to go towards June's rent. Then start your renos early on the other side, get it rents and finish fixing up your half after the other side is done and rented.

You can try to go after her in court, but honestly even if you win, you're unlikely to see the money.

Josh C. · Answer

If it's month to month you don't really think you have a leg to stand on. That lease isn't valid if that's the old lease 12 month lease. (You didn't show the dates so hard to know) you should be happy you have a vacant unit without evictions and can fix and rerent with a proper lease.

Gary Childers · Answer

Yes she is likely still liable for June rent at minimum and potentially the early termination penalty depending on how your lease is written. She did not give proper notice and abandoning the unit does not release her from her contractual obligation. The fact that she left the key does not constitute a legal surrender in most states — you would need to formally accept that surrender in writing for it to release her liability.

Document the condition of the unit today with photos and video before you touch anything. Get contractor estimates for all damages in writing.

Apply the security deposit to unpaid rent first then damages and send her an itemized statement of what was applied and what she still owes within Indiana's required timeframe.

On the attorney question — yes for a first timer with a lease penalty clause involved it is worth a one hour consultation with a local landlord tenant attorney. They can tell you exactly what is enforceable in Indiana and whether small claims is worth pursuing for the balance.

Do not let the 60 day notice violation slide just because she is already gone. You have a lease with a penalty clause for a reason.

Jon Westrom · Answer

This is where I always tell owners to slow down and document before reacting. The lease matters, but so do your state rules on deposits, notices, and mitigation. Sometimes you are legally right and still better off using the vacancy to get the unit turned, rented, and stabilized faster. The win is not always chasing every dollar... its protecting the asset and making the next decision clean.

Aaron Zimmerman · Answer

I would focus on renovating the other side and not worry about the lost money of 2 months rent. It is Small in the grand scheme of things.

Drew Sygit · Answer

1) You are NOT househacking.- Househacking is renting out rooms in the house/unit you live in.- You just bought a duplex.

2) Yes tenant is typically liable for the 2 months of rent.

3) Welcome to landlording!This is not uncommon:(Check state laws about liquidating the SD for the unpaid rentGood luck finding her to serve her, getting a money judgement and then garnishing payroll or bank account (that you also have to find).

Richard F. · Answer

You stated that the Tenant was "transferred to a month to month lease". What does local law state regarding renewal and termination notice requirements? Month-to-month usually means 30 days notice at best, for either party.

The fact she left the key and informed you she was out, I would not lose sleep...just document with pics and compare to the move in form the Tenant signed, and you at least have the basis for Small Claims Court if necessary for actual Tenant damage, but, if local law allows, yes, the Sec Dep can be used to pay June rent.

Technically, you have the obligation to mitigate your damages, but making reasonable attempt to re-rent, but obviously if it is in poor condition, you would still need to make some repairs before doing so. Better to take the time and spend the money to properly prep the unit to attract the best of the available Tenant pool and screen properly for a quality, long term, Tenant.

You still must meet local timeline for providing an accounting of the Sec Dep and legit deductions, which you can mail to her last known address (your rental). When it arrives, keep it, unopened, in your file for that Tenant in case you need proof of having sent it in the future. The cost and effort involved in trying to chase whatever is remaining will rarely be worth the aggravation.

Jaron Walling · Answer

@Paul Stamm Count your blessings because they come in all shapes and sizes. You may have dodged a bullet with that particular tenant. If they lived there for a long time the damage deposit would have been "used" to cover repairs. Now you can use it for renovations.

Sounds like it's time to remodel and get it rented. Like @Theresa Harris stated don't waste your time going after two months of rent. Even if you win an attorney may never collect a dime.

Tenant moved out early…what do I do?

Tenant moved out early…what do I do?

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