Question about a tenant breaking 1 year lease agreement AND wants his deposit back!

[웃 910]

ATTN MODS: PLEASE LEAVE IN OT. NOBODY CREATES POLLS ANYMORE. NOBODY VISITS THE POLL SECTION. THERE HAS ONLY BEEN 7 POLLS CREATED THIS MONTH. IT WILL NOT HURT OT. THANK YOU FOR NOT HAVING OCD.

Situation:

Good tenant, never a late payment, signed 1 year lease in February 2010 to February 2011.

I receive $825 on the 8th every single month.

In February he paid an $825 deposit + first months rent.

On the 18th he told my dad (who collects) that he "came into some money" and will be leaving the 12th. My dad told me this morning. And he is expecting to get back his $825 deposit.

Here is how I am looking at it:

1) He broke the 1 year lease agreement with short notice (4 months 3 weeks still left on lease agreement)

2) Before I found this out today I was expecting an $825 payment on the 8th; now I will not receive the $825 on the 8th but instead pay him $825 on the 12th!!!???

3) Was anticipating receiving $825 on 11/8, 12/8, 1/8, and 2/8, and then renegotiate. That is $3300 that is not going to go into my pocket, as stated in the contract, and to top it off he expects me to pay him $825!!!

How absurd is that? How can I go from expecting to receive $825 in less than 3 weeks from now to having to pay him $825, all while he breaks the lease agreement when there are over 4 months left on the lease!!!

I didn't speak with him about this yet, need to go to the house and take pictures for Craigslist postings to find a new tenant, and want to be on good terms. So I am not sure how he will react (maybe he won't care). What do you suggest?

Edited October 21, 2010 by Lord Infamous

[Ban Hammer 12,839]

voted for option 3

[VanessaTony 3,567]

I will tell you what the go is in Australia for such situations:

If you're a NICE person this is what happens:

Until the property is rented again, rent is expected to be paid. Deposit is also not returned until the place is rented out. Sue them if they don't pay

If you're not a nice person:

You're liable for rent for the duration of the lease, whether a new tenant moves in or not. They had an agreement with you to remain and money is expected. Sue them if they don't pay

In both cases:

If the premises is in good condition when they leave, then deposit is returned when new tenants move in (only then). Until the property is rented out, he is liable to pay rent.

---

Did he sign a contract or is this a verbal agreement? Is he a mate? Are you okay with suing him for breach of contract if he tries to bail on the rent?

Even if you are eventually "doubling up" on rent if he's paying rent and a new person moves in, you are having him pay for the inconvenience of re-tenanting the property, of getting it up to standard, of vetting applications, the stress involved and breach of contract. He hasn't given enough notice and if this was a month-by-month lease it would be okay, but it's not so it's not good enough.

Edited October 21, 2010 by Vanessa&Tony

[one...two...tree 2,762]

I'd first make a reasonable attempt to contact him, possibly talk in person or over the phone. I'd let him first explain his situation, listening attentively and avoiding interrupting. Then I'd explain to him the situation that he is now putting me in as the landlord, along with what is within my legal rights to do. From there, I'd see if there is something that us two could work out, but where I wouldn't compromise is I would deduct from the deposit any days extra he stays along with any damage to the place.

Realistically, you're probably not going to get any more money from him if he's moving out and should be thankful that he'll be leaving the place without destroying it.

Edited October 21, 2010 by El Buscador

[I AM NOT THAT GUY 5,715]

Each state has different rules. Also, if this is a written lease, what were the terms of the lease? That should guide your decision.

[Fandango 1,439]

Each state has different rules. Also, if this is a written lease, what were the terms of the lease? That should guide your decision.

words outta my mouth here...

[AlinaH 38]

I definitely think he needs to have some sort of penalty for not sticking with the lease. I agree that a good option is for him to pay monthly until you find a new tenant, and THEN he can have his deposit back.

If he just leaves with no repercussions, what's the point of signing a lease agreement??

Obviously this is just my opinion on how it should work....your state may have laws that state otherwise

[elmcitymaven 9,711]

Each state has different rules. Also, if this is a written lease, what were the terms of the lease? That should guide your decision.

Echoing this. What state are we talking about here? I give warning (as I must) that I am not licenced in any state in the US but I am willing to give friendly advice that may not be relied upon in a court of law or in arbitration. Happy Bunny might also be able to help given her experience in real estate.

[scandal 951]

ATTN MODS: PLEASE LEAVE IN OT. NOBODY CREATES POLLS ANYMORE. NOBODY VISITS THE POLL SECTION. THERE HAS ONLY BEEN 7 POLLS CREATED THIS MONTH. IT WILL NOT HURT OT. THANK YOU FOR NOT HAVING OCD.

Just wait till Otto shows up. It'll be moved.

I think Steve's post is about how I would treat this. Negotiation and trying to work something out is always preferable to hostility and litigation. Litigation is an automatic loser = only the lawyers win there.

If nothing can be worked out in conversation, then absolutely keep his forfeited deposit against the lost rent, let him dare sue you for that (he won't). Then get a new tenant. If you can do so within 30 days, you're not out of pocket, so consider yourself fortunate. If it takes longer than 30 days, well now you've learned that the property management/rental business has risks just like any other investment. Good luck, let us know how it works out.

[spookyturtle 9,465]

Just wait till Otto shows up. It'll be moved.

And he'll be suspended for posting it in the wrong place. :devil:

[scandal 951]

apparently, 11 is the number.

Dang. That's mighty impressive.

[spookyturtle 9,465]

Back to topic, here in MA the tenant has more rights than the property owner. Evicting someone is a nightmare. After they screw out of 3 months rent or more, and the sheriff comes to oversee the move, which the landlord pays for, plus pays for the storage of the deadbeats furniture to boot. In some states, the lease isn't worth the paper it's printed on, unless you're the property owner-then you'll be forced to abide by the law while the tenant skips town.

[AlinaH 38]

Back to topic, here in MA the tenant has more rights than the property owner. Evicting someone is a nightmare. After they screw out of 3 months rent or more, and the sheriff comes to oversee the move, which the landlord pays for, plus pays for the storage of the deadbeats furniture to boot. In some states, the lease isn't worth the paper it's printed on, unless you're the property owner-then you'll be forced to abide by the law while the tenant skips town.

Similar to where I live. I work for a lady that had renters in her home. They were destructive, smoked when they weren't allowed to, never paid their rent, etc. Yet in order to evict them, she would have to pay $3000 for a sheriff to come over and kick them out. It wasn't worth it for her. So they got to live there free, doing whatever they heck they wanted to. SO ridiculous.

[luckytxn 2,263]

I have rental property and have gone through this. A lease is a binding contract the tenant must pay the full rent to the end of the lease. Now they can ask to be let out of the lease early but must give you a certain amount of notice. They will be liable though for the expenses that you incur to find another tenant and the new tenant will have to go through the screening process that you choose to do. After a successful tenant has agreed to rent and move in then the old tenant has to move out and the abode is cleaned and ready for the new tenant and the new tenant moves in under the new lease. Then and only then give up the deposit minus the deductions that cost you. If no new tenant can be found then the old tenant has to keep paying the rent.

Also you do not have to let them out of the lease at all and the tenant is bound by the lease but you will have to sue them but that is not hard to do as I have done it myself several times successfully. One tenant has even tried to sue me and lost. Of course this is in the state of Texas and the laws may be different where you live. Texas is very strong on contracts.

I always ask for and receive the first and last month and a deposit upfront. I have someone that does a background check and checks all references. The prospective tenant pays for it of course.

[luckytxn 2,263]

Similar to where I live. I work for a lady that had renters in her home. They were destructive, smoked when they weren't allowed to, never paid their rent, etc. Yet in order to evict them, she would have to pay $3000 for a sheriff to come over and kick them out. It wasn't worth it for her. So they got to live there free, doing whatever they heck they wanted to. SO ridiculous.

I went and filed a eviction for 85 court cost and the constable cost me 60 to serve them. Luckily they left because the next step was in 5 days I had a crew coming that was to remove their stuff and go into storage. I was going to pay the storage and people around 400 dollars but the only way the tenants could have retrieved their stuff was to pay all costs associated plus the ongoing storage fees. If they did not by a certain time then an auction would have been done and usually but not always does that bring all due.

The best things is to get a huge upfront money like the first and last month and an additional deposit. Also make sure to get a background and reference check done that they pay for.