Tenant breaks lease 3 months ahead and not paying the nov ren

Member since 2022 · 8 posts · 0 votes

I have an inherited tenant in my multi-family in Mountain view, CA who gave 30 day notice to move out on 11/30 to property management and said they are not going to pay the Nov rent since security deposit is already paid. They also called PG&E and disconnected Gas and electric (tenant is responsible for these utilities as pr the lease) effective 10/31 which made the service transfer to my name now, Any suggestions on how to handle this break of lease, not paying the rent and disconnection of utilities?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @Durai K.:

Shut the utilities off.

You normally can't shut off utilities because it's considered a self-help eviction, which is illegal. However, the tenant was responsible for utilities and they shut down their account, so it's technically them shutting the utilities off. I would close your account and have the meters pulled. It will cost you some money, but that will motivate them to pay to turn the utilities back on or they'll move out.

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Ian Murray
Member since 2021 · 28 posts · 14 votes
3y
Is the security deposit enough to cover the November's rent? I am explicit that the security deposit is not last month's rent in our leases, so make sure that your lease says the same thing.
If the tenant has vacated the property, shifted the utilities to you, and turned in all keys, you may be able to put new tenants in as soon as the property is ready. If the tenant is still in the unit, you should be able to go after them for both the rent and the utility costs. You'll definitely want to speak to your attorney about that, though, as I am not one.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
The security deposit can't be used for rent. Give them notice and start the eviction process and tell them they need to get gas and electricity back in their name immediately. Call both companies and tell them the tenants are still living there.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Durai K.:

I have an inherited tenant in my multi-family in Mountain view, CA who gave 30 day notice to move out on 11/30 to property management and said they are not going to pay the Nov rent since security deposit is already paid. They also called PG&E and disconnected Gas and electric (tenant is responsible for these utilities as pr the lease) effective 10/31 which made the service transfer to my name now, Any suggestions on how to handle this break of lease, not paying the rent and disconnection of utilities?

Shut the utilities off.
You normally can't shut off utilities because it's considered a self-help eviction, which is illegal. However, the tenant was responsible for utilities and they shut down their account, so it's technically them shutting the utilities off. I would close your account and have the meters pulled. It will cost you some money, but that will motivate them to pay to turn the utilities back on or they'll move out.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3y
@Durai K. what does your PMC advise?
Not that it will change the tenant's behavior, but we wold put it on the record with the tenant that they will be held responsible for rent and utilities, in accordance with the lease contract, through the end of the lease - or until the property is rented out again, whichever comes first.
Hopefully, your PMC has their drivers licenses, work & banking info, so they can turn the data over to a collection attorney to pursue garnishment.
FYI - most PMC's do NOT handle collections, so don't expect yours to handle this.
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Durai K.
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Member since 2022 · 8 posts · 0 votes
3y
Quote from @Ian Murray:

Is the security deposit enough to cover the November's rent? I am explicit that the security deposit is not last month's rent in our leases, so make sure that your lease says the same thing.
If the tenant has vacated the property, shifted the utilities to you, and turned in all keys, you may be able to put new tenants in as soon as the property is ready. If the tenant is still in the unit, you should be able to go after them for both the rent and the utility costs. You'll definitely want to speak to your attorney about that, though, as I am not one.
Yes.deposit is one mont rent and lease explicitly states in BOLD that it cannot be used for last month's rent.
Tenant still stays at the property.
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
Quote from @Theresa Harris:

The security deposit can't be used for rent. Give them notice and start the eviction process and tell them they need to get gas and electricity back in their name immediately. Call both companies and tell them the tenants are still living there.
PG&E does not really care about it as long as they have someone responsible financially for the account..I did inform them though but they want the tenant to call and reactivate..
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
Quote from @Nathan Gesner:

Quote from @Durai K.:

I have an inherited tenant in my multi-family in Mountain view, CA who gave 30 day notice to move out on 11/30 to property management and said they are not going to pay the Nov rent since security deposit is already paid. They also called PG&E and disconnected Gas and electric (tenant is responsible for these utilities as pr the lease) effective 10/31 which made the service transfer to my name now, Any suggestions on how to handle this break of lease, not paying the rent and disconnection of utilities?

Shut the utilities off.
You normally can't shut off utilities because it's considered a self-help eviction, which is illegal. However, the tenant was responsible for utilities and they shut down their account, so it's technically them shutting the utilities off. I would close your account and have the meters pulled. It will cost you some money, but that will motivate them to pay to turn the utilities back on or they'll move out.

Attorneys have the same opinion but one they suggest it is up to me to shut off or leave it on and claim..
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
Quote from @Drew Sygit:

@Durai K. what does your PMC advise?
Not that it will change the tenant's behavior, but we wold put it on the record with the tenant that they will be held responsible for rent and utilities, in accordance with the lease contract, through the end of the lease - or until the property is rented out again, whichever comes first.
Hopefully, your PMC has their drivers licenses, work & banking info, so they can turn the data over to a collection attorney to pursue garnishment.
FYI - most PMC's do NOT handle collections, so don't expect yours to handle this.

Yes. we are going to go after this tenant no matter what for this bad behavior. eviction notice and further process.
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
Thanks all. what is the scenario if tenant moves out after 3 day notice to cure or quit notice?
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Durai K.:

Thanks all. what is the scenario if tenant moves out after 3 day notice to cure or quit notice?

If the Tenant pays, you stop the eviction process and proceed with their lease.
If the Tenant moves out, you consider it a termination. Take control of the property, turn it around, charge the tenant for cleaning, repairs, and unpaid charges, and find the next renter.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
Quote from @Durai K.:

Thanks all. what is the scenario if tenant moves out after 3 day notice to cure or quit notice?

Be thankful that they are out, do the move out inspection and get the place rented.
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Ash S.
Member since 2022 · 32 posts · 9 votes
3y
Tenants cannot have an excuse that I am not paying rent for last month or not paying for repair and deduct it from security deposit(who knows what all other damages they have?). Security deposit is part of the agreement, it binds them.
Evict them so that eviction stays in their rental history for at least 7 years.
They need to keep utilities till the lease end.
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
This particular tenant said PMC that they are breaking lease because of PM negligence. All the maintenance cases are handled properly though. It is just that they are find an excuse to move out early. Very nice people...:-) They gave notice to move end of November. PMC is going to give 3 day notice to quit for their illegal pet, utility disconnection and non-payment of rent. But, I am not sure how useful it is since they are moving out anyways. Any views? Will these notices be useful when we sue her for all the damages including break of lease?
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Nic S.Pro Member
Danville. CA · Member since 2017 · 313 posts · 221 votes
3y
@Durai K. Sue them for the remaining monies owed per the lease. CA is a tenant friendly place but sounds like you have a case.
You can also try to negotiate with them. Ask they pay for X months and you won’t post eviction and take them to court.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Hire a property manager, don't manage these things on your own. Best you can do is take them to small claims court and evict them
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Durai K.
OP
Member since 2022 · 8 posts · 0 votes
3y
@Eliott Elias

I do a have a PMC.
@Nic S.
Situation here is negotiation failed and tenant vacates end of November.
We are planning to sue in court, get judgements for damages and report to credit bureaus so they see the consequences for the behavior. There are multiple violations and we are sure that we will win the case. There should be an easy way in law to report these kind of 'bad' and 'senseless' tenants. Very hard to do business in CA. :-(
If the tenant is seeing this message from google search : My dear honest tenant, "be truthful to yourself. What you give always comes back"

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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Quote from @Durai K.:

@Eliott Elias

I do a have a PMC.
@Nic S.
Situation here is negotiation failed and tenant vacates end of November.
We are planning to sue in court, get judgements for damages and report to credit bureaus so they see the consequences for the behavior. There are multiple violations and we are sure that we will win the case. There should be an easy way in law to report these kind of 'bad' and 'senseless' tenants. Very hard to do business in CA. :-(
If the tenant is seeing this message from google search : My dear honest tenant, "be truthful to yourself. What you give always comes back"

They need to handle this
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
3y
Quote from @Theresa Harris:

Quote from @Durai K.:

Thanks all. what is the scenario if tenant moves out after 3 day notice to cure or quit notice?

Be thankful that they are out, do the move out inspection and get the place rented.

In California, this was my thought exactly. I would have the utilities disconnected, however, since they are in your name. No point in paying for the tenant's utilities, and take out whatever you're charged from the deposit. I (assume) that in California they'll need a lease in order to turn them back on, which I wouldn't give them, so that should speed up their own process of leaving.

Honestly, though, California is not an easy state to get someone gone so you really should be thankful that they are leaving (in theory) on their own. Get them gone as fast as you can and move on.
PS: If you already have a property manager, you need a new one. No idea why you are dealing with this instead of your PM. That's what they are being paid for.
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