Late rent, not living there, what next?

Question

I have a tenant that signed a year lease, and then moved out after two months. The lease states that the full 12 months are due. I verbally told him that I would pro-rate as soon as I got it re-rented. Well, the re-renting has gone very slow. There are a number of houses in the neighborhood for rent, and I am not just renting to anyone. I am screening to find a good tenant. He paid rent more or less fine for the three additional months after moving out. But, this month, he has not paid and is not responding to emails, texts, or phone calls. He doesn't live there anymore, so I can't evict him. How would you go about enforcing the lease?

PS - I have a couple qualified tenants that may move in February 1. So, my loss "should" only be January. But, nothing is a done deal with them yet.

PS - I have a couple qualified tenants that may move in February 1.  So, my loss "should" only be January.  But, nothing is a done deal with them yet.

Brad Gibson · Answer

If you're facing some stiff competition in the neighborhood, you might consider cutting the amount you're asking.  It could give you an edge over the competition to get a qualified tenant.

It is not ideal to take less rent, but you could set it up on a 6 month lease, so when it comes time to renew or terminate, it'd be mid-summer which is when many moves take place & you could net full market value then.

Best of luck.

Christa P. · Answer

Thank you all!  It is awesome to get such prompt and informed answers.  This is my first property.  So, I am learning a lot.  To answer some of your questions...  I have not had a completed application come through.  A few showings and some interest, but I have not turned down any qualified applicants.  This is the first month that I have actually gotten completed applications.  As I mentioned, there are a number of very similar houses for rent in the same neighborhood, and I believe that the cold weather is keeping people away.  I have consulted with my attorney, and am waiting for his response.  I agree, I have been lucky that he has paid this long.  Happy New Year!

Christa P. · Answer

I have consulted my lawyer and read all the state laws.  I have performed within my rights.  My property has brand new carpet and new paint.  It is in great shape.  It is priced equal to the others in the neighborhood.  The tenant moved out because he got divorced.  It had nothing to do with the property.  I am going to send him a letter formally terminating the lease.  Thanks for all the advice!

Deanna McCormick · Answer

You need to know your states landlord tenant laws. Did your current tenant give written notice? How can you list and rent a house he's still responsible for unless you have a written agreement to let him out of the lease. Lots of loose ends.

You should have done a mutual lease termination with 2 months rent as a lease buy out or termination fee and you would have been able to rent it or advertise available with basically offering a move in special of 2 months free to get a tenant ...

Get him to sign off and take the loss until you can re rent it, your marketing and screening is either over priced or your not answering the phone calls, or the unit needs some TLC to make it market acceptable. you need to get out and look at similar houses to get a better idea why its not renting.

William Walker · Answer

Why did the tenant decide to move out after 3 months?  Moving is a lot of effort and money.  Does his reason to move have any correlation with why you can't find another tenant?

I agree with some of the above posts in that it sounds like you should be somewhat happy with the 3 months of payment and cut your losses.  I don't think pursing this legally would benefit you in the long run.

Jasmine Wilborne · Answer

@Brandon Hicks that's a good point.

Kim Meredith Hampton · Answer

@Christa P. I would honestly look at your landlord tenant laws for Nebraska. In Florida we can't charge for more than two months of rent, nor can we charge double rent if it gets re-rented and you have already collected the rent.

Eric F. · Answer

Honestly, the fact he paid rent for 3 months after moving out is good for you and I would consider it lucky. Sure your lease says he still owes it, but he could have just not paid anyway. Have you turned down a tenant you would otherwise have taken since you were getting rent paid anyway? If that is the case I would say you are taking advantage of the situation.

As for him not living there anymore, I would guess you still have to go through the eviction process. Technically he has the right to move back in tomorrow if he wants. He is still paying rent after all (although he is late).

Thomas S. · Answer

You could take him to small claims court if you wish, Assuming he is working you may collect but the judge could determine that 3 months was sufficient time for you to find a new tenant and award you nothing. I would, in this case, write off the loss.

Late rent, not living there, what next?

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