Tenant Breaking Lease Agreement

Rehabbing, Fix and Flip, Rental Properties
1

Hi All. Seems like everything is hitting me at once. Between looking for a rehab and my current tenant breaking lease to move into her home. Guess that’s the business :slight_smile:

Question: I have a signed lease that expires in March of 2006. I just got an unsigned letter (via Fedex) from my tenant informing me that she’s moving out on Dec. 14, 2005. I have her $700 deposit and keeping my fingers crossed that she pays December rent. I planned to sale the house when the lease expired anyway. However, I want to handle this legally. What are my Legal options?

Thanks in advance
dlmcgill

2

She is actually legally obligated for rent thru March of 2006. This means basically that you are screwed for 3-1/2 months of rent. If you take her to court, you might win but you might not…some states look badly on landlords and some are pro-landlord.

I would tell her also that, in the business world and as a matter of law, unsigned documents have zero validity. If she plans on vacating you need a signed document. As it stands right now, she could tell the judge that you typed the letter and are just harrassing her or that it was a prank pulled by her friends…

Also in some states, the law is clear about what the deposit can and cannot be used for. Make sure you know for sure that you are entitled to keep it as ‘liquidated damaages’!

If you plan on selling, it is a moot point and probably not worth pursuing. Just get it ready and sell it.

My two cents…

Keith

3

You should make a big stink about the fact that the tenant still owes you the 3 months of rent. Tell him that you will attach his credit with the rent owed unless he pays out the lease. When you have his attention, negotiate and settle for half of the rent owed. Don’t use the deposit for unpaid rent, use it for fix up so that you can sell the house.

4

Thanks to you both. That is good advice. Its good to get second opinions.

dlmcgill

5

Step 1. Send certified letter stating the lease is in-force and payments should be made.

Step 2. As soon as the first month hits she does not pay, take her to small claims court (no lawyer needed; usually cheap to file). You might have to wait until 3/2006 to go after the whole amt.

Step 3.-you have a high chance to prevail as one can not break a lease becuase they feel like it; this is pretty cut and dry.

Step 4-after you have a judgement, go record it. This will attach to her nice new house and she will not be able to sell or even re-fi without you get paid.

6

Hi aak5454. Thank you for your response.

I sent her the certified letter today stating that the lease is in full affect.

I really appreciate Steps 2-4. I will definitely stay on top of it.

Thanks again
dlmcgill

7

If she does not pay her December rent, simply evict her. As part of that eviction proceeding you can probably (depending on your lease language) get a judgment for the December rent. Also, I believe that if you can’t sell or rent the property during the remaining months covered by the lease, she is going to be responsible for your damages, so I think you can keep the balance of her security deposit (after getting the judgment and deducting December rent) in an escrow account for a while - at least until you rent it. Even if she tries to get the balance of the deposit back from you in a court proceeding, you’ll likely be able to demonstrate that there are repairs required beyond ordinary wear and tear that will eat up the remainder of the deposit.

8

Was she a bad tenant, did she damage your property, did she ever pay you your rent late? I don’t know which state you are in so I don’t know the landlord-tenant court system, but it doesn’t matter. If she was never a bad tenant why cause the headache. Why mess up someone’s credit just because she wants to move?
Yes I understand that the lease is a legally binding agreement but it doesn’t seem worth it if she hasn’t caused any damage. If you really need the money run ads to rent it for January as soon as she moves.

9

Hi eve_32:

Was she a bad tenant, did she damage your property, did she ever pay you your rent late?

She has been late most months. Her rent is due on the first of the month. I give her til the 5th before filing non-payment at the courthouse. And she normally does not make payments til the 22nd of the month. With the exception of October and November (where she paid on time).

I have been to the court house to file non-payment of rent against her more times than I can count. Won two judgements against her because she didn’t even show up in court. The other times she paid before the court date.

I am in Maryland where rental laws tend to lean toward the landlord. More so than in DC. However, the sheriff is so backed up with evictions that even if an eviction is awarded, it would take months to get the sheriff out to the premises.

Besides being very late on more than several occasions, she has maintained the property fairly well. However, if she was interested in working with me, she would have contacted me more directly. She sent a letter that wasn’t even signed and the letter came from a business address that in no way could be connected with her.

Thanks for all your responses. Happy reading :slight_smile:

dlmcgill

10

Hi all!

I have SOME sympathy for tenants whose lives start moving in different directions. I’ve been there once.

I college I rented a duplex for 7 years straight with a couple other guys. Those seven years include two years after I graduated and worked in the same city (to prevent any of you from thinking I’m a doctor from going to school for 7 years).

My roommates and I were never late once during that 7 years, not even a day. The landlord never raised rent a penny during those seven years (which is crazy in my opinion, but hey, his loss). We always took care of the place.

However, about halfway through our last year, my roommates got relocated, I was going to get married, and I bought a house in another city where I was being moved to. I absolutely HAD to break the lease.

I talked to the landlord, and initially he was a bit stingy about it, but I finally negotiated a deal with him to find new tenants for his duplex, and I did. Not only for the remainder of the current lease, but the new girl even signed an additional lease for another year.

I guess my point is, peoples lives change directions quite often. As a landlord, make sure you’re not keeping your tenants from bettering themselves (through new jobs, new houses, marriage, etc) by holding them to their leases. Especially if they’ve been with you for a long time, never missed a payment, and taken good care of the place.

That being said, you have every right to collect on the full term of the lease.

I guess it’s a matter of picking your battles, and meeting the other party in the middle and wishing them good luck in life.

In this situation, I’d go to this person with a certified letter (which I believe you’ve already done) and be clear to them that they are responsible for the full term of the lease. However if they wish to go out and find new tenants (that meet your approval) you may be able to work out a deal.

Just my opinion.

-Slip

11

<<I college I rented a duplex for 7 years straight with a couple other guys. Those seven years include two years after I graduated and worked in the same city>>

I wasn’t thinking about Med school…I was thinking more along the lines of Forrest Gump…“…and after just 6 years of playing football for Coach Bryant, I graduated!”

LOL…just kidding!

<<As a landlord, make sure you’re not keeping your tenants from bettering themselves (through new jobs, new houses, marriage, etc) by holding them to their leases.>>

My lease not only has a ‘military clause’, it also has a ‘home ownership’ clause that releases them from the lease by showing me the approved contract and giving 30 days notice…

Keith

12

Keith,

That is a very good policy to have, I think I’ll try it. Thanks.

13

Yeah,

There are an aweful lot of tenants (especially young people) who think landlords are out to nickel and dime them on fees and security deposits.

I have found that if you understand their position, and realize where people are coming from and give them an “out” through negotiation, things are fairly civil 99% of the time.

I like the military clause, though, I hadn’t thought of that one!

-Slip

14

Military clauses are very common here (near an AF Base) and a lot of other places I’ve been (I spent 20 years in the Army and have 25 years of total government time). If someone has to move to another base or move into government housing, I wouldn’t think of stopping them! I’ve been there on the other side…

Keith

15

Hey All:

I went to court today and was finally awarded a judgement against the tenant in the amount of $4500. The address she gave the court is a house, however, she is not the owner. So much for the lien. Question: All I have is her bank account information and her work address. Would it be better to file to garnish her wages or her bank account or both?

dlmcgill

16

Anything that they will allow. If she has been on her job for a while you will probably have a better chance going through the garnishment process against her employment.

It is simple to close a bank account and reopen another.

17

Thanks for the response Mark. I will do exactly that.

dlmcgill

18

Good LUCK!! :guns:

19

Out of curiosity do most of you (landlords) wait months for the Sheriff to come evict. Or do many of you circumvent the sheriff and just kick the person out ?

20

Depends what you have on that person. Normally you have to follow the process if you don’t want to get into trouble. Self help evictions are typically illegal.

I’ve heard many stories of people who have done various things to get people out and it does work, but they open themselves to a lot of liability. Heard of a case where a guy just went in, tossed all the guys stuff out and changed the locks. Techically very illegal and the tenant would have a good case in court. But then they’d have to find a lawyer and perhaps have to pay the filing fees to get into court, in the mean time their stuff is sitting outside the house and they have to go someplace else to live and they didn’t pay the rent. In that case the landlord knew the tenant just wasn’t the type of person to do anything and nothing ever came of it.

Then there’s the story of the guy who hired a big tall tough guy to come knock on the tenants door and tell them that he’s going to have to come break their legs if he’s still there in a few days. The story is that the guy was very polite and the tenants believed the guy as he never had to come back and do anything. I think someone else here mentioned the phrase “rearrange your furniture for free” as another way to put it.

These may be urban legends but they’re great stories and at least worth a chuckle.

Then there’s the more normal ways to get rid of people, pay them a month or a half month’s rent if they get out of the apartment. Around here, it would take at least two or three months to get someone out once they miss their first payment and longer if they know how to fight it. One way of just cutting your losses. Some landlords won’t do this on principle as they’d rather lose money than give in to a deadbeat.

Oh, back on topic, congrats on the judgement. Once that’s entered into court, it will really hit her on her credit report. I think those can take up to 7 years to disappear from your credit and if you do something to make it active, it’s 7 years from the last activity date. She’d have trouble buying a house or car in a few years.