Tenant changes mind

[Brian Ellis]

So I had a tenant sign a one year lease pay me first and last months rent (1600) they were moving from out in the country to my sfr in town they called me the next morning and said they couldn't do it and moved all there stuff back to there country home that they had put up for sale. How should I handle this situation? do I give them there money back or what?

[Terry Hershberger]

@Brian Ellis 

There is no "cooling off" period for residential releases. In some states, a cooling off period is required for certain contracts, which give signers a window of time, typically one to three days, during which they can void the contract if they change their mind. Unless such a condition is explicitly stated in the lease or there is a rare jurisdictional law that requires a cooling period, your lease is binding the second you sign your name. The landlord has the right to decide whether to mutually agree to terminate the lease or to hold the tenant to the terms.

So Brian, the ball is basically in your court. If it were me, I would explain this to them and try to rent the home again. I would charge them for the days up until I rent the home again, any advertising expense it costs to get it rented again and keep their security deposit for breaking the lease.  If any money is left over after these expenses, I would refund the balance. I think that is fair. Hopefully others will chime in and give you some advise too.

Hope this helps ya!

Happy Investing!