Tenant moves out early, how would you handle this?

Question

I had a tenant that unfortunately had some financial difficulty and had to move out (her husband lost his job). I suspected this vaguely last month when the rent came in two separate installments.

She has payed up until the day she moved out (1 week into a new month, she is supposed to be out by tomorrow at the latest). She kept offering to pay an extra month if she needed to, which I declined. If she can't afford the rent, I don't want her to come up with more money.  They have only stayed 7 months out of their 2 year lease.

Legally in Honolulu or Hawaii, correct me if I am wrong, early termination of lease is forfeiture of the deposit? I will also lose some revenue in getting new tenants, possible some repairs (haven't looked yet). Thoughts on this?

William Allen · Answer

If it was me I probably would have accepted her month of pay, try to re-rent out the house as quickly as possible and refund her the difference of what it cost me of vacancy before I could get it filled.  Between that month and the security deposit you will likely have more money leftover that could go back to the previous tenant if you wanted to.  But if not, you are covered on your expenses.

However, the local landlord/tenant laws would determine what I could and couldn't do.  It sounds like you are a good guy and trying to help them out as I'm sure I would be too, but I would want to cover my business expenses first and then refund them the residual if there was some.  That way you are a nice guy and you aren't paying them out of your own pocket.

Jacqueline Carrington · Answer

What does your lease say? Have you researched landlord-tenant law in Hawaii? If not, I would consult an attorney for your best course of action.

In Connecticut, the resident is responsible through the end of their lease term unless other agreements or terms of the lease allow for an alternative.

Andrey Y. · Answer

Thank you, Donald. That's what I was looking for. I am doing the first showing tomorrow, hopefully I don't come in to some surprise (I doubt it as these were genuinely nice people). I do expect some minor turn-over costs.

Andrey Y. · Answer

So she basically said we would be out 1 week into this month, and I asked her to just pay that week because I didn't think she would be able to pay for the month. She had thought she owed me another month but I said its okay, I don't want her in debt even more.

Donald Hodge · Answer

Andrey, we had a similar situation and per the usual HI lease, you can keep the deposit to defray your costs for re-advertising, etc. especially since they had a two year lease.  They are in breach of contract, but the best you can do is retain their security deposit.  The landlord-tenant rules you can find on line spell it out pretty clearly.

Royce Talbo · Answer

@Andrey Y. when you say

"She has payed up until the day she moved out (1 week into a new month, she is supposed to be out by tomorrow at the latest)" does that mean she paid up until the first week of this month and she is living rent free now or she paid until the first of next month and is leaving early?

I have never had a tenant quit early only for military purposes which I returned their security deposit.  As for your situation this would fall under the to compensate for damages by a tenant that quits the dwelling unit.  I would think that if she is paid up till 1st week of next month there shouldn't be any damages to you as you could probably find someone to fill the unit by then.  If this is the case you should return her security deposit less any repairs you had to make.  Remember though that it has to be returned within 14 days and you have to itemize it or else they get back the full amount.  The other thing you should note is that if you wrongfully withhold a security deposit and they go after you for it they are allowed 3 times the amount.  As for the prorating part I am not too sure about as she is actually terminating early.

If she is living rent free right now then it would fall under the To remedy tenant defaults for damages, for failure to pay rent or for  failure to return keys at termination of the rental agreement.  This would allow you to withhold security deposit to compensate for your loss.

Matthew Kreitzer · Answer

You should absolutely consult with an attorney licensed to practice in Haiwaii or the state whose laws govern this lease agreement. Generally speaking, a tenant is liable for the entirety of the lease term unless the lease allows for early termination and those allowances are satisfied. Generally speaking, most states allow for retention of the security deposit to help satisfy this amount. However, there are specific procedures one must normally take before unilaterally crediting against the security deposit. It may be wise to seek an attorney to begin an action for breach of the lease agreement, while seeking out new tenants.

You should not operate on any advice I just gave, as special considerations in local law may impact your particular case. This is merely for educational purposes, and you should consult a local attorney.

Andrey Y. · Answer

@Royce Talbo

Tenant moves out early, how would you handle this?

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