Tenant mvoing out before lease ends

Tenant mvoing out before lease ends

Investor · Cary, NC · Member since 2015 · 71 posts · 26 votes

My tenant bought a house and moved out. She requested I end the lease early, but I told her we can start showing the house and if it rents I can terminate the lease when new tenant moves in. But she has not cleared all the stuff out, and more importantly turned off the AC in very humid weather. House needs to be painted before i can show it, and she is not allowing to paint. In this case I would just wait for her lease to end and then get work done and show the house. But since she keeps tuning off the AC, even after me telling her otherwise I feel like waiting for her lease to end might do more harm to the house with high level of humidity. I have also tried to explain her its in her interest to let us paint the house and rent asap but nothing is getting across, she basically wants something in return for us to be able to paint. She keeps saying she will allow to paint once we find a tenant, which makes no sense. She has 2 months left. Wondering how pros here would resolve this issue.

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Member since 2023 · 9 posts · 10 votes
2y

Note for future - Ensure your leases have a lease break fee, 1-2 months rent that the tenant needs to pay in order to terminate their lease early. The lease termination fee needs to be paid at the time they request this, do not substitute the security deposit for this purpose.

This will ensure compensation for time, money and effort needed for a tenant turnover, including advertising and showing costs, regular repairs, utilities during vacancy etc.

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  • Member since 2023 · 9 posts · 10 votes
    2y

    Note for future - Ensure your leases have a lease break fee, 1-2 months rent that the tenant needs to pay in order to terminate their lease early. The lease termination fee needs to be paid at the time they request this, do not substitute the security deposit for this purpose.

    This will ensure compensation for time, money and effort needed for a tenant turnover, including advertising and showing costs, regular repairs, utilities during vacancy etc.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Mona V.:

    She is trying to hold you hostage, hoping you will let her go without penalty.

    I would give her a written notice that she is responsible for rent until a new tenant takes over or her lease ends, and she must maintain the home and prevent any damage. If she turns off the A/C and it results in damages, she will be held liable for that, as well.

    Do the math and see if it makes sense to let her go. If rent is $2,000 and utilities another $300, that's nearly $5,000 to sit on a vacant home. Tell her to empty and clean it, and you'll let her out of the lease immediately. Once she's out, you are back in the driver's seat because you have her deposit to apply towards cleaning or repairs.

    If she's not willing to save $5,000 then there's probably nothing you can do but wait it out.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    If she wants to move out early, then she needs to work with you. If she's going to turn off the AC, I'd tell her that she's not helping her situation.  Reminder her that the sooner you can get it rented, the sooner she can be out of her lease.

    Get it in writing that she wants out of her lease and the end date and hold her to that.  I'd also put it in writing that you are not renewing her lease in case she tries to change her mind or something happens with her new home.

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    2y

    Forget about renting it early. She has stuff in there, she doesn't want it prepared for the next tenant, she is not cooperating, forget about it. She's willing to pay the rent for the next two months to be a PITA, that is her choice.

    Inform her in writing the need to keep the AC set to a minimum level to protect the health and safety of the property even if she is not living there. "As you are aware, high humidity can cause rapid mold growth and wood rot. Given the size of this place, remediation could easily run over $100K, which I am sure you would not want to be responsible for. Therefore, set the AC no higher than XX degrees."

  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Mona V., you my friend are in the catbird seat in a sense! As long as you are willing to play the long game you don't really have a reason to be overly nice or flexible with this tenant.

    If they end up owing you money, you sue them and then file the judgement as a lien on their new house! That will prevent them from selling or refinancing without paying you. It looks like you could even use it to foreclose (ask a lawyer in your state), but that the first $35k of equity goes to them. So, you would want to wait some years until they pay that mortgage down to take that action if needed.

    I would explain that to them that if they don't stop being obstructionist that they stand to end up with a lien on their house as a result and eventually lose that house. That threat alone may prompt them to cooperate and get things back on track here.

  • Investor · Cary, NC · Member since 2015 · 71 posts · 26 votes
    2y

    Thank you all for replies. I was able to terminate the lease early, she wouldn't pay for repairs to the house (carpet stains/cleaning, a broken floor tile etc) and gets off the utilities, but paid a termination fee equivalent to the leftover rent. Its amazing how she thought she is "offering" me a deal, take it or leave it. Leaving it would save me few bucks but getting her the off the property is peace of mind.

    Lesson learned -> Have a early lease termination terms in the lease, probably 3 month rent.

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    We have a lease break fee but if the tenant didn't want to use it we hold them to the lease terms. She would pay the remaining time she has left, and we would start the rent ready upon move out.

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