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Updated almost 3 years ago on . Most recent reply

User Stats

18
Posts
4
Votes
Matthew T.
  • Property Manager
  • Kansas City, MO
4
Votes |
18
Posts

Renter signed lease, paid deposit and rent, wants to back out

Matthew T.
  • Property Manager
  • Kansas City, MO
Posted

Hi all. The title is pretty self explanatory. I have a renter who signed a lease last week. Paid deposit and first months rent. Didn’t move in. Now he wants out of the lease and wants their money back. According to him he is in a custody legal battle and his lawyer said he can’t move. He hasn’t proven this and I don’t think is entirely true. 

I did run background checks on him, and I found court records of child support, but according to those records it was dismissed. 
I didn’t know he was in a custody legal battle because he had specifically told me his ex-wife was out of the picture and didn’t want anything to do with their kids when I brought up those records. Now he is telling me the opposite. 
I’m located in Kansas. 
Thanks. 

Most Popular Reply

User Stats

52
Posts
35
Votes
Joel B.
  • Rental Property Investor
  • Happy Valley, OR
35
Votes |
52
Posts
Joel B.
  • Rental Property Investor
  • Happy Valley, OR
Replied

Hi @Matthew T.,

Personally, I would get the unit listed and rented out as soon as possible to someone else. Once that is done, use his deposit and rent money to cover what you lost, and the additional cost of, finding a new renter. For example, if you get it rented at the 1-month mark, you keep his first month rent and refund his deposit. I'm pretty sure a judge would side with that position.

You can legally hold him to the contract, but, since there's no need to pick a fight, use this method as a compromise so that he gets out of the lease, and you don't carry financial damages. This is obviously not the type of tenant you want (someone who seems to have lied to you), so I wouldn't try to keep him there. Let him go, but don't take the financial hit that he legally should carry.

I'm not an attorney, so you might want to run this by one. I don't know what the laws in your state are concerning this type of situation.

Hope that help. Blessings!

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