Non renewal notice of lease by tenant

[Atul Mohlajee]

My daughter goes to school in Michigan.  Her lease (13 month lease) ended June 30, 2024.   She did not give 45 day notice of non renewal of lease.  She paid rent till the end of lease.  She moved out on June 28, 2024.  Property management Company is demanding 1 month rent for failure to give 45 day notice of non renewal of lease plus 60 day rental fee for time for finding tenant.  These items were in the lease.  I am cosigner on the lease and have refused to pay hem.   How enforceable are these items in Michigan?   In Illinois, I have problems getting rent for last month on the lease.

Please advise.

Thanks.

[Atul Mohlajee]

They are asking for 3 months rent, although lease ended on June 30 and rent is paid until June 30, and she moved out before June 30.

Thanks.

[Matthew Paul]

Read the lease , if thats what it says and you and your daughter signed it , then they can take you to court and will probably win 

[Tom S.]

@Atul Mohlajee  That's how I would interpret it too, it's in the lease and they would probably win in court.  Worse, they could put the collection on both of your credit reports, which could show for 7 years even if paid.  

I recall seeing a recent post from someone else in a situation like this, he even paid the collection but score is still too low to apply for a mortgage.

Certainly speak to an attorney to double check your options.

[Patti Robertson]

When you agreed to co-sign, you agreed to pay if your daughter does not pay.  Everything you said shows she owes the money, and so do you.  What is the point of co-signing if you are going to refuse to pay, just like she did. Teach your daughter a lesson.  Pay it if she cannot, and make her pay you back. This is time for adult lessons, which includes meeting your financial obligations.

[Kevin Sobilo]

@Atul Mohlajee, I don't know Michigan's laws specifically, but none of this sounds out of line.

They should be able to sue you and your daughter in Michigan and then record that judgement to enforce in Illinois if needed. That would create a lien on your property there. So, for example if you have a rental property they could foreclosure on it to get paid.

If they are savy enough to follow through, you'll save yourself a bunch of money by paying them now. If you are lucky you can negotiate the amount down a bit. 

[Adam Bartomeo]

It truly shows one's character when they sign a legal document and then POST for the world to see that they refuse to pay even though they are at fault. Do the right thing!

[Theresa Harris]

I'm curious if the management company reached out to ask her if she wanted to renew the lease or not?  The penalty does seem high (3 months' rent to cover 60 days of vacancy), but that is what it said and you and your daughter agreed to it when you signed the lease.

[Drew Sygit]

@Atul Mohlajee what does the lease state about this?

Did the lease auto-renewal for another year because tenant didn't give proper notice?

If so, then tenant could be liable for rent until a new tenant is found.

You state the penalties are in the lease that you signed, so you're only other option is to negotiate a better settlement.

[Mackaylee Beach]

I may not be well-versed in Michigan's laws, but if the lease you both signed contains that language, then you are bound to adhere to it. As a co-signer, you share equal financial responsibility with your daughter.

[George Skidis]

Always get the advice of an attorney. No here is my non legal opinion. The reason the landlord had you cosign is because they knew she would have no assets to go after. So my opinion is you're going to pay one way or another. The question you need to answer is, "Do you want to pay their legal fees as well?"

[Kevin Sobilo]

Quote from @George Skidis:

Always get the advice of an attorney. No here is my non legal opinion. The reason the landlord had you cosign is because they knew she would have no assets to go after. So my opinion is you're going to pay one way or another. The question you need to answer is, "Do you want to pay their legal fees as well?"

Unless its specifically in the lease about legal fees, its unlikely the loser would pay the winner's legal fees. Except for contracts that specify that and violations of specific laws that allow for that for the most part people end up paying their own legal fees.

[Tim Miller]

I'm just totally baffled that you would co-sign a lease for your daughter and because she didn't give notice and packed up and left. Now you are not paying what you both agreed to.

To top it off, you are broadcasting to the world that you are completely dishonest and are asking others how to get out of paying.

You are really setting a great example for your kids.

[Atul Mohlajee]

Thanks everyone.  The best advice was to contact an attorney.  They already have 1.5 months rent as security deposit.  I donot expect to get back security deposit. What they are asking for is 60 day aditional rent for lease termination because they say that lease is renewed automatically if tenant gives insufficient notice.  According to Michigan attorney, they will be entitled to one month rent for insufficient notice.  However, Michigan law does not allow automatic renewal of lease due to insuffient notice especially when they email me 45 days before end of the lease stating that nothing needs to be done if my daughter moves out by end of lease. That is their ploy to take your money beyond what they can legally. These are words of Michigan attorney not mine.  I donot expect to get back deposit which is 1.5 months rent that is more than 30 days rent they are entitled to. But I am not planning to pay them extra 60 day rent for lease termination for lease that does not exist because Michigan does not allow automatic lease renewal due to insufficient notice. Paying people money that you donot owe them is not good character but stupidity.  I am sure vast majority of people on BP and life donot want to pay what they donot owe.  Actually many donot want to pay what they do owe.

[Drew Sygit]

@Atul Mohlajee not sure who your attorney is, but three of our attorneys approved our automatically renewing lease that requires tenant to give proper Notice so it does NOT auto-renewal.

Michigan law also allows any length of Notice requirement, ours is 60 days.

That aside, a judge can rule however they want, forcing the losing side to go through an expensive appeal process.

Regarding the 1.5 SD, they are legally allowed to deduct any damages, then apply the rest to outstanding rent.

My opinion is that the PMC should only be able to charge:
1) Rent + lease utilities until a replacement tenant is found (Michigan statute)
2) Whatever the lease contract states

[Atul Mohlajee]

The attorney is currently working on this.  We will handle this as it comes.

[Melanie P.]

Quote from @Atul Mohlajee: However, Michigan law does not allow automatic renewal of lease due to insuffient notice especially when they email me 45 days before end of the lease stating that nothing needs to be done if my daughter moves out by end of lease. 

 If they sent you an email saying that your daughter had to be moved out before the end of the lease to avoid any other charges aren't they acknowledging receipt of a 45 day notice? Make sure to save that email and have it ready to go when you need it. 

Personally I would demand the security deposit back and then offer to let them keep it if they release you and your daughter from any other claims. Your largest risk is this winds up with a debt collector and impacts you and your daughter's credit.

[Atul Mohlajee]

I hired a lawyer who wrote a letter and was able to negotiate loss of just 1 month of security deposit vs 3 months of rent that was earlier demanded by property management company.

[Atul Mohlajee]

Actually they demanded 3.5 months of rent for automatic renewal of lease earlier.  It was reduced to 1 month rent that was security deposit.  $1400 loss vs $4900 demanded earlier.

[Nathan Gesner]

Pay what you owe. There was a written agreement that required 45 days notice, and she failed to give notice. 

This is why I don't allow cosigners. Everyone is happy to put their pen to paper as a cosigner, but the majority of them refuse to pay when they see a bill.

[Atul Mohlajee]

These property management companies have their own Lawyers, If they paid me back they knew they are Foul playing, I play by rules and Expect the same from others , and I don't agree with people who are siding with wrong side and attacking back and also taking their grudge on others is far from being Professional rather they should not be in the jobs where they donot have patience

[Wesley W.]

They "paid you back" not because they knew they were foul playing, but to mitigate their business loss due to you not honoring your part of the written contract.  It would cost them more in legal fees/time to take you to court and prove their case, which they would win.

You've obviously never had a tenant move out on you in the 11th hour.  This is especially troublesome with student rentals, where there is absolutely no demand after the summer.

Great example to are making for your daughter, here.

[Atul Mohlajee]

When they sent written renewal notice , it was written if you are not renewing " No action Required", This statement shows no action required and that is why they backed up and what example they are giving by not clarifying things and manipulating it.

[Colleen F.]

@Atul Mohlajee She should have given written notice anyway. I don't know any unit where no action would be required when a lease ends.   I think the lawyer was a smart thing. Regardless of the reason it got your payment lowered. Next go round both you and your daughter will be more aware of what you sign and it should go more smoothly. 

[Atul Mohlajee]

Thanks Colleen.