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Updated over 1 year ago on . Most recent reply

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Luke H.
  • Real Estate Investor
  • Dallas, TX
168
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WWYD: Leaving, Not Leaving

Luke H.
  • Real Estate Investor
  • Dallas, TX
Posted
Hi all, hope all is well.
Tenants of 3 years sent text message notification that they were leaving in 3 weeks (breaking lease early by 8 months).
4 days before their move out date , they call and say their home purchase fell through asking if they can stay.

Want to get anyone's feedback on legal creative solutions.
Thank you

Most Popular Reply

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied
Quote from @Luke H.:
 
Tenants of 3 years sent text message notification that they were leaving in 3 weeks (breaking lease early by 8 months).
4 days before their move out date , they call and say their home purchase fell through asking if they can stay.

Want to get anyone's feedback on legal creative solutions.
 
Aloha,

What's the big deal? I have to assume they have been good Tenants since you have renewed them in the past. Let them stay...no harm, no foul...they are not breaking their agreement after all. You should be happy, not looking for ways to penalize them. Turnovers can be expensive. You WANT Tenants to stay for years...as long as you inspect at least annually to ensure they are taking reasonable care of the property.

When their current term is up, and knowing they are looking to buy, why not let them go month-to-month, or perhaps a 3 or 6 month term if they have a new purchase offer in the works. We always pro-rate rent to the last day of possession, without sweating over which specific day they will be out (as long as we did get the minimum required written notice (text messages are not acceptable, and likely not "sufficient notice" per local law) of their expected move date, and their existing term has been completed). Delays in moving are pretty common, especially when also coordinating a home purchase.

When an Agreement is broken early, you cannot handcuff them to the property to make them stay...local law dictates how you handle it. Usually the Tenant remains responsible for rent until end of current term, or until unit is re-rented. YOU must make the good faith effort to rent it, and pro-rate the incoming and outgoing Tenant rents appropriately. You usually cannot charge both for the same days.

It just makes more sense to allow time for a proper and thorough preparation of the vacant rental before showing, and especially before committing a move in date, to prospective new Tenants. Why create stress for yourself? Now, if they were bailing on their FIRST term 8 months early, that might be a little different, but in my opinion you never want to keep a Tenant that does not want to stay. You will just be butting heads constantly.

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