Coronavirus and student rental?

Question

I have a SF student rental that just moved their spring semester classes online due to the Coronavirus, I have a few tenants threatening to move back home but the lease they signed runs through July 2020, yes I feel terrible about the situation but they need to abide by the lease they signed..thoughts?

Patrick J. · Answer

@Matt Baumrucker

List the place for rent and tell them, if you find someone else whos qualified, you'll let them break the contract but I would still keep their deposit money for breaking the lease.

William Coet · Answer

The lease is a legal contract and the decision to move classes online does not affect where they live.

There is no reason they cannot do their online courses at the apartment they have signed a contract for.

They have already received their financial aid/student loans. They are not in a position where they have lost a job as some who are less fortunate may be. They are a segment of the population that is reportedly unaffected by this, and they have an obligation to keep things operating as normally as possible. Hold them to their responsibility and stick to the legal contract that was signed. The tax collector, mortgage holder, and insurance company likely won't be extending you any breaks.

Matt B. · Answer

Update: I rent the house out to 6 students, 4 students have found people to sublease though the end of July. The college shut down campus and forced everyone to move out, not everyone can go home so filling the rooms has not been terrible. The students have posted Facebook ads on a couple local groups and have found people to sublease that way.

So far so good, I hope the best for everyone one else out there.

Matt

Kellan Martz · Answer

Disclaimer: This is general legal advice & I am not your personal lawyer, please seek legal advice for your personal situation.

In lease break situations, the landlord has a duty to mitigate their damages. So you can't wait until they move out and sit around expecting a court to award you rent from now until through July. A court would expect you to place ads and try to replace the tenants. You can't also just take their deposit because they broke a lease. You would be entitled to reasonable damages. Yes, they would be responsible for breaking the lease but you can't gouge them for it either.

Kevin DeVargas · Answer

@Matt Baumrucker

Hi Matt,

I agree with William, they signed a binding contract and you have the legal right. But I’ve learned to find the gray area in these situations and find mediation.

Can you place another ad and quickly find another renter?

Can you ask them to help you help them and get another renter? It is there responsibility.

I hope this help let me know if you have any other questions.

Thanks.

William Coet · Answer

Again, the colleges are not closing.  They are going to an online format which can be completed from an apartment.

They have not lost a job or income. They  have already been funded for the semester if they are using grants or loans.

Will Gaston · Answer

@Matt Baumrucker @William Coet @Clayton Smith

I own ~60 student rental units and rent to ~150 college kids in Columbia, SC. This is of concern to me but even larger concern to the massive student housing developments in my market. Some of them have 400-500 beds and get ~1MM/month in rent. I have had my staff contact 8 different complexes and find out how they are handling it as they have the most skin in the game in this situation.

Generally speaking the response has been this. Very few students (or parents) have called and asked to break the lease or discuss rent payments for April as of 3/18. Most, if not all, of the complexes are expecting rent to be paid in April and are unwilling to break leases. Many are willing to waive late fees. Also, many of them are still occupied (40-80%) with students even though UofSC is not in school. Online classes will be starting next week, however, those can be taken anywhere.

Like everyone else, I am not 100% sure how this plays out. But I am hopeful that students will pay their rent as they can still live in the housing that they have been provided.

Marlen Weber · Answer

@William Coet You have excellent points on this topic. Thanks for sharing with us.

Clayton Smith · Answer

I have several student rentals and am worried about the same thing happening in my area. My thought is they signed a contract and must fulfill it but this doesn't mean it will be painless.

I understand people are trying to help by saying list if for rent but in college towns it is extremely hard to find tenants in the middle of a semester.

William Coet · Answer

Good post!   it can be very difficult to find a sublet for a student rental in the middle of the semester.  People are going to be looking at vacancies and loss of income and challenges paying taxes, mortgages, ets.

Coronavirus and student rental?

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