Advice Needed

[Sarah Larbi]

Hi BP members I am hoping to get some advice with one of my tenants. We bought our third rental property in November and tenants moved in signed a 2 year lease. The tenants had been friends for many years but never lived together before which was a red flag for us but picked them either way. Now 2 months later, February rent is late and I was on them daily to get it paid and as they were new was giving them one chance. After a bunch of excuses the truth comes out: she moved out and took the rent money he gave her to pay me. I spoke to him and I will be getting paid this week when he gets his next check. Here is where I need advice: he told me he changed the locks so she can't get in. What is my obligation with this when it comes to her? Should I allow this? What do I do with the lease agreement? If I want to remove her from it how do I legally void the original agreement with both of them on it? Then can I redo one with him on it only? Does she need to sign an addendum saying she is removed from the lease? I'd rather not have her on it and keep just him I am wondering what the best way to do this would be? Thanks for your help in advance !

[Cashmere Robinson]

Very complicated issue. You should take help of an legal adviser. There should be some terms in your legal agreement to terminate the lease agreement. I think you should give a legal notice to the tenant that you are calling off the agreement. Personally I think this is going to be a serious issue if you don't address this fast. 

[Sarah Larbi]

Thanks Cashmere for the reply, I do need to address this soon. I may have to consult with my lawyer .

[Fred Dray]

Do you and if not, you should have a term in the lease which states something like: Tenant may not change locks without landlord consent.  If tenant changes locks, a key must be given to landlord on demand. 

Tenants should not be making any changes to your property without consent.

Since she is on the lease, he can not suddenly change locks to keep her out.

As for changing the lease the lease, she needs to give you 30-day notice to move and until the end of that notice, she is responsible for rent.   You can always serve a 3-day notice to pay to both of them.  Does she still have keys? 

Also, beware of taking any action based only on hearing his side of the story.  Who knows what the real truth is, so make every attempt to discuss the situation with her.

good luck