Let Renter Assign/Sublet/?

Question

Hi,

Been a member here for a while but never posted before.  I have a tenant in a rental property (nice area) that have been great.   They have been there since this past June.  Getting married and want to get out of the lease at the end of Feb.  (Bought a bank foreclosure in the same area)

They are willing to help screen and show the property and are open to helping with getting pictures to post (they will do that too).  I live 16 hours away and won't be coming in to assist with the process.  It shouldn't be hard to rent though, I found them on the first day.

My question is, do I have them assign their lease so they still have liability or just start a clean slate with a new renter.  This is my first rental property so not sure I am thinking of all the + and -.

Thanks!

Michele

Dana Dunford · Answer

@Ryan Gillette - Completely agree, valid points.

@Michele F. - Start a new lease (12 months) and do a full turnover.

• Reason for new lease: If you try to deduct anything from the security deposit with the new tenants, they are going to say "well that was damaged before I got there." You don't want communication issues. You also want the new tenants to sign for 12 months -- you don't want to get into a precedent of turning over your property every 6 months (painful)!
• Tenant Screening: It's nice the tenants are willing to do this, but I recommend that you also perform full screening. It's in their incentive to get someone into the property asap, not in their incentive that the person is qualified (they are trying to get out of the lease and won't have to deal with rent collection and other items that could be an issue).
• Charging existing tenants for rent: I wouldn't hold them liable for just the time until they leave. I would hold them liable to pay rent until the new person moved into the property, so that you're not out any rent from vacant days. Check on your lease and with your state laws, but make sure that you're not out any money ... you're already having to go through the difficulty of turning over the property.

Hope that helps!

Dana

Michele F. · Answer

Hi @tomOtt,

This is what I decided to do.  The current renter is showing the place and then I will have a friend from the area (who I have know for many years) eyeball them for me to get their take on them.

I have done the initial screening over the phone and always ask for current paystubs and salary to be sure they are able to pay if the showing goes well.   I was able to be there for the initial lessor, but hopefully with all this in place I will find a good tenant.

Thanks for the information!

Michele

Tom Ott · Answer

Hi Michele!

Excellent question! Your situation does seem like a unique one. This sounds like it may be tricky, but hopefully not that difficult. I would suggest signing a new 12 month lease with the tenants. After all, you do want them to stay if they are good!

However, my suggestion is that you do the screening yourself. Make sure you are the one running the credit report and doing the background check. Even if you trust your current tenants, you want to make sure the research is done correctly and efficiently. You don't want to leave any room for error when leasing your place to a new tenant.

Do you know someone else who lives in the area that can show the place for you? Maybe having someone you have known for a long time might be better than just your former tenants.

I know you live far away, but lease signing, background check, and credit reports can all be done electronically now and you should be just fine.

Please let me know if you have any more questions!

Tom Ott, Smartland

Website: http://www.smartland.com

Tom Ott · Answer

Great Michele! I'm happy I was able to assist you in this situation. It is good you have a friend there to make sure everything is good to go! Be sure to do that background check too. Always a good idea!

Lee L. · Answer

@Michele F. Get the credit report, and get it yourself, to reiterate @Tom Ott It's likely the new lessees are friends of the current tenants, and as friends, they might present the new people in the most favorable light. You might also want to get a hold of their past landlords and see if they were good tenants or not. Past behavior is a good predictor of future behavior

Lennie Holland · Answer

@Dana Hoffmann said it perfectly. It's great that you will have boots on the ground for essentially free. Just remember like Dana said, the old tenants do not have your same interest, they just want out. Perform proper screening of your potential new tenants and don't be influenced by your old tenants. Good luck

Michele F. · Answer

Thanks @DanaHoffman & @WalterKey.

All valid points.  I have a few friends and my Realtor there that can do a walkthrough.

Also like the point that they pay until renter is in.

Appreciate the insight!

Michele

Walter Key · Answer

It's already been said but I'll echo...terminate the current tenant's lease and create an entirely new lease when the new renters take possession.

You'll need to assess any damages from the old tenants and refund their security deposit accordingly. Then, charge an entirely new security deposit for the new tenants.

Michele F. · Answer

Thanks Ryan.  So you suggest letting them out of the lease completely or having the new tenants sign and Assignment form?

Ryan Gillette · Answer

I would say "Sure, if you can help me find someone willing to rent March 01, I'll let you out of your lease early". Break their lease entirely, and do a new 12 month lease for the new tenants. These things happen. The good news is they're being responsible and giving you 60 days. They also sound motivated and willing to help you find and do showings. It's a blessing, in a way.You have tons of time to find a qualified tenant and someone there willing to help (and likely motivated to help sell the apartment by keeping it furnished, in good, clean condition and selling the good things about the unit and the area). You avoid a conflict with them, avoid traveling out there, and avoid paying a leasing agent.

Let Renter Assign/Sublet/?

Most Popular Reply