My tenant behind in rent is moving out before contract expiration
Abad MarroquinPro Member
Chatsworth, GA · Member since 2014 · 124 posts · 17 votesMy tenant behind in rent is moving out before contract expiration
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Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10yI have to admit, I'm just glad if a tenant leaves my property on good terms and doesn't tear everything up.
Basically, they owe you $ 1300 and you have $ 400 deposit, so that leaves $ 900.00 I would probably just eat it, provided they leave the property clean and paint touched up, so, that a new tenant can move in.
It's not as if they did this to be mean or selfish, but because they don't see any other way out to catch up.
I learned, that sometimes it's much better to compromise, than to stick to my guns.
Just my opinion
15 Replies
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 354 posts · 167 votes10y
@Abad Marroquin - First you need to contact a lawyer for legal council. I am in no way giving legal advice but I am talking from my experience.
In Indiana, I would take them to small claims court to recover the lost rent and damages. You would also may have to sue for possession of the property -it is dependent on your abandonment laws.
In the small claim court in my area, I have walked into the courthouse and spoke with the court clerk. They were able to guide me into what forms are required. Note that there may be limits or legal representative requirements in your small claim court. This is if you are planning to represent yourself without council.
Finally, you may be able to forgo all of this if you can sit down and have the tenant sign a simple payment agreement for the outstanding amount. I would also get them to sign a paper to say they are cutting their lease short. I have used this strategy and made an agreement that they are responsible for the rent until you find another renter. It is sometimes easier to go this route. You can always take them to small claims court if they do not pay. Note that our courts will not usually give you rent for when the tenant was not in the property.
Good luck.
- Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes10y
I have to admit, I'm just glad if a tenant leaves my property on good terms and doesn't tear everything up.
Basically, they owe you $ 1300 and you have $ 400 deposit, so that leaves $ 900.00 I would probably just eat it, provided they leave the property clean and paint touched up, so, that a new tenant can move in.
It's not as if they did this to be mean or selfish, but because they don't see any other way out to catch up.
I learned, that sometimes it's much better to compromise, than to stick to my guns.
Just my opinion
- 10yJennifer T.Pro MemberInvestor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
Did you already start the eviction proceedings? If so, continue with them until they are actually out. Depending on your area, I think oftentimes a money judgment can be included with the eviction. I will let someone else answer if it is best to let an eviction go through...for the money judgment...even if the tenant is already out. Or if it's best to just go to small claims court at that point.
Generally speaking, what you can sue them for in small claims court is the amount of rent due (minus the deposit) PLUS any rent due between their leaving and when you are able to get in another tenant (up to Jan. 18th).
Of course, you don't want to sit on your laurels. You want to get a new tenant in as soon as possible for two reasons. A court will want to see your due diligence in mitigating your damages plus, getting a judgment is the easy part. Collecting on the judgment is the hard part. You may not ever see that money. But an unpaid judgment will haunt their credit report for 7 years and make it harder to rent in the future from any landlord who checks credit.
If you haven't started the eviction proceeding yet, I'd just wait the two days to see if they really leave.
I'd also talk to them. Point out you have been very reasonable in offering them a payment plan when they had hard times and are concerned they are moving out before they have paid it off. I might make a deal with them that, if they continue their payment plan after they leave and pay off their debt by X date, you will forgive the future rent they will owe for breaking the lease and will also not need to take them to small claims court.
Extra "jerk tenant" points. Where did they get the first month/security for their new place when they still owe you money?
Ironically, I am in a bit of the same boat as you for the first time in my landlording. My current tenants...who just moved in 3 months ago...are a 1/2 month behind with their next month's rent due in one week. It's been a long story. To cut to the chase, supposedly $1,000 was deducted from their account in error and there is a dispute to reverse it. But, either way, they can definitely pay the past due plus this month's rent on the 30th/1st. And...my big bad...against all the normal BP advice and my better judgment, I let them move in $400 short on the SD. Which was supposed to have been paid within two weeks of move-in, but has never been paid.
Oh...and...although they have not given me the official 30 days notice yet, they have verbally told me they will probably move out on Dec. 30th. Two months short of the end of their lease.
My plan is to serve them with a 5-day pay or quit on Nov. 28th. for the half month they are behind. If they just do what they have already promised, this notice will be a mute point. However, if they don't, I can then IMMEDIATELY file for an eviction.
- Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes10y
@Abad Marroquin I would serve them the notice to quit or pay (3-5 day notice depending on your state law) ASAP. This starts the eviction process typically can be done by the landlord (we are able to do in in Louisiana). If they vacate and the place is not trashed, move on. If they are lying, then you did not loose those days in the eviction process. I would not evict them just to evict them, as that is generally a cost you will not recover.
As many people will tell you, its unlikely you will ever collect the lost rent, even with a lawsuit judgement.
- Investor · Mobile, AL · Member since 2015 · 66 posts · 21 votes10y
This is actually a very common problem and, IMO, depends on the circumstances surrounding the events.
1. You stated the husband had an accident and did not work for a month. I ASSuMe he was working and paying rent on time beforehand. This tells me he is not attempting to avoid paying rent. An unexpected life event hit them and they fell behind. It can happen to any of us.
2. His wife asked you to work out a payment plan. I do not know if you did or not. You did not state one way or the other.
You want to know if you can sue them for the back rent? The answer is obviously, yes. You can sue for anything these days.
The question is, should you? IMO - in this particular case as described by you, "No," you should not. There are other effective ways to make this a win/win.
1. Granted you can request a judgement for attorny fees and court costs on top of the past due rent. So that will be covered, IF the judge so determines. How do you collect? How much will collections cost you in time and money?
2. It does not sound as if these tenants are attempting to scam you. The husband was not working due to legitimate injury. It sounds as if the tenants wanted to make good and stay put. They did "beg" you to "work with them by giving them a payment plan," did they not?
IF the tenants have been living there for a while, take good care of your property, and have a history of on-time payments then I would in fact create a plan to help them catch up. You don't want to lose a good tenant due to a short-term unforeseen accident.
IF the tenants chose to leave on their own you can also choose to waive the past due rent in exchange for them waiving the return of their security deposit and leaving your rental unit SPOTLESS (move-in ready) so that maybe all you have to do is standard maintenance (paint, etc).
At the end of the day we are all about making money - paying our own bills and putting food on our own tables. There is absolutely zero problem with that. However, there are times when you must ask yourself if your decision is morally and ethically sound and long-term is this the best decision?
Being a "more effective landloard" involves much more than collecting a check each month and maintenance. You must also have a soul.
There is also the question of what impact this will have on YOUR reputation within the community. When in doubt ask yourself the following basic question, "How do you want to read about yourself in the newspaper the next day?"
Just my $.02.
- Manhattan, NY · Member since 2015 · 109 posts · 27 votes10y
My advice is eat the loss of 900, it's not worth pursuing in legal actions. I think I read someone else state that if it is only one month of rent and they are leaving peacefully do not fight them. It might get much worse on your behalf.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes10y
I wouldn't bother with the eviction unless they don't leave. Consider it a learning process:
1. Your deposit sounds too low - either the rent is $1300 for a month, or 850 for a month since you say they are 1.5 months past due; either way you should have a month's worth of rent.
2. Try to get a signed agreement from them to pay you back what's owed on the rent. If not, you might want to let them know (nicely) that you'll have to sue them to be made whole if they don't pay.
3. If anyone is/wants to break a lease, and is going to go on their way anyway, I prefer to get paid up front and take my chances on getting it re-rented. Money in the hand is far better than a promise to pay or someone being responsible month-to-month while waiting for the place to be re-rented.
Skyline Properties - Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes10y
There is no reason you should have to take the loss on the rent. Work out an agreement that the tenant signs for repayment. If they do not agree to sign the agreement or do not honor the agreement you should be able to get a judgment against them. That judgment should give you the ability to garnish their wages if they do not pay it. At this point you do not know the condition the property will be left in or if there will be any outstanding utility bills that you may be responsible for. You should be able to add any repairs and bills to the judgment. It is fairly easy to do this in Michigan. Contact a local attorney or better, enroll in a pre-paid legal service so you will be able to contact an attorney anytime an issue or question arises.
- Chatsworth, GA · Member since 2014 · 124 posts · 17 votes10y
Thank you all of you for your input on this. Yes I gave them a payment play. They accepted it, but in the last two payments they came up with excuses for paying only the rent but not not a single dime to catch up.
- Investor · Jonesboro, AR · Member since 2015 · 241 posts · 132 votes10yAbad Marroquin What I do: I want one thing in this situation, a house that's ready to lease. You can chase these people for money, but it's apparent that they have nothing. Say after time, money and much frustration you win, then how will you collect? I talk to the tenants and explain that they owe me back rent and that their legally obligated to fulfill their lease. Then I explain that I'm an understand person and that I'll work a deal with them. If they will be out in X amount of time, leave the place clean and ready to rent(no repairs needed), then I will release them from their obligations. A disgruntled tenant can cause you thousands in damage that you can never recoup. They can loosen a water fitting and that could flood your house and there's no way of proving they did it. I always tread very softly and try to remain on their good side while their in control of my investment. I know others who get angry, take them to court and then try to force them to pay, but in the end the tenant stays longer, more damage occurs, everyone involved is stressed and angry. Walk softly and carry a big stick :)
- Investor · Mobile, AL · Member since 2015 · 66 posts · 21 votes10y
Originally posted by @Abad Marroquin:
Thank you all of you for your input on this. Yes I gave them a payment play. They accepted it, but in the last two payments they came up with excuses for paying only the rent but not not a single dime to catch up.
Well then, I would tell them that if they waive their security deposit and leave the home and yard spotless (that includes the inside of all appliances) that you will waive the past due rent -- and of course, this means they still have to be out Wednesday, as indicated by the wife.
- Chatsworth, GA · Member since 2014 · 124 posts · 17 votes10y
Thanks for your advice Perry Ivy.
I appreciate your help Dan Perrott.
Thank you Michaela G.
Thanks Virginia H. I appreciate your help.
Thanks Jeremy Dolan.
Thank you Mike Wood. I will send them the notice to quit or pay just in case...
Thank you Jd Martin . My security deposit is $500. I lowered it to $400 for them. They acted very responsible... BIG MISTAKE!
Thanks for your advice Jennifer Tornus!
Thank youJeff Rabinowitz
- Investor · Fairfax, VA · Member since 2015 · 45 posts · 12 votes10y
I think the lesson here is that the security deposit should always be equal to at least one month's rent.
- Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes10y
Originally posted by @Abad Marroquin:.
They acted very responsible... BIG MISTAKE!
Sometimes the most responsible person may be in a jam and simply has no way to stand up for their obligations. Not because they're not responsible, but because life happened in a way that they presently don't have the option to do in the way they had absolutely intended to. - Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes10y
Life happens to us all. Go ahead and give them immediate notice that you are filing an eviction but if they can pay you the money...super. If not, they will have an eviction on their credit at least to forewarn other landlords in the future. Oftentimes, a tenant will realize the problems that an eviction causes when they start getting turned down for other properties, a car loan or trying to buy a home of their own....and will then settle up. I'd be apologetic about and just tell them your hands are tied. Check what the process is for eviction with the magistrate court in your area. You can go ahead and give them notice now...whether you file or not later is up to you.
You can't assume that a tenant who orally tells you that they are moving...is actually moving. It can often be a ploy to drag it out some while they continue to live for free. I have filing evictions but usually now file the first week. Most of them get worked out or come up with a payment plan. We don't run into this as much with shared housing which is another reason why we like it!
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