Process Engineer · Rochelle, IL · Member since 2016 · 36 posts · 16 votes
Hello!
Long term tennants are going through a separation (4yrs). The wife wants to move out with the children and have her name of the lease. There has been a lot of fighting and she wants to move out at the end of this month. I have contacted my lawyer to help with this situation and what my options are. Should hear back from him soon.
Has anyone experienced this before and what did you do? What was the outcome?
What are the pittfalls that I should avoid?
I am concerned about rent and utilities not being paid due to legal battles. I am also concerned about fights over security deposits and any damages that may come out of it.
The question you have to ask yourself-- do you want to get in a big legal battle?
Personally, I view a divorce as a giant financial storm, and ya know what.. you probably have some late rents coming your way (or missed payments) if they have to hire lawyers, not to mention whoever controls the $ will be a jerk to the other. Lawyers fees, and then child support payments will be ranked higher than you in the future.. Do you really want to pay thousands to a lawyer to just listen to your problems?
If I were you, I'd offer them to get out of the lease free of charge, as long as they allow you to do showings and get someone new in there. You'll have minimum turnover, and IMO doing a really good thing for yourself and them. Your goal as a landlord is to have it rented, so why waste your money on a lawyer, focus on getting it rented and putting a more stable situation in there.
One of my favorite quotes.. "Do you want to be right, or do you want to be rich?"
Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
9y
What does your lease say? I put in an early termination service charge equal to 3x the rent to terminate the lease in 7 days. I would have re-rented in less than 2 weeks.
Process Engineer · Rochelle, IL · Member since 2016 · 36 posts · 16 votes
9y
I'm sure this will change. But as of last night, the wife told me that the husband was willing to stay till end of lease. She wanted to take her name of the lease and give him full responsibility. She says he's agrees to this, but I have not had him verify this.
My lease does not address this. It has a typical lease breakage clause and the corresponding fines. It does not specially stipulate what happens in a partial breakage. As of now, the intention is carry out the lease to fulfillment on the husbands end.
The question you have to ask yourself-- do you want to get in a big legal battle?
Personally, I view a divorce as a giant financial storm, and ya know what.. you probably have some late rents coming your way (or missed payments) if they have to hire lawyers, not to mention whoever controls the $ will be a jerk to the other. Lawyers fees, and then child support payments will be ranked higher than you in the future.. Do you really want to pay thousands to a lawyer to just listen to your problems?
If I were you, I'd offer them to get out of the lease free of charge, as long as they allow you to do showings and get someone new in there. You'll have minimum turnover, and IMO doing a really good thing for yourself and them. Your goal as a landlord is to have it rented, so why waste your money on a lawyer, focus on getting it rented and putting a more stable situation in there.
One of my favorite quotes.. "Do you want to be right, or do you want to be rich?"
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
I'd negotiate a mutual lease termination agreement. If utilities are in their names then your not responsible until they've vacated.. so don't worry about that.
So do they both want to go, or would you be satisfied if one stayed, and the other left. would they also agree to that..
Check your state landlord laws and see if they have guidelines on what you can charge for a lease termination fee.
If mutual and one leaves minor fee.. $250.00 if all leave I've seen 2 months fee, and security deposit returned if unit is left in good condition.
Process Engineer · Rochelle, IL · Member since 2016 · 36 posts · 16 votes
9y
I agree Linda, my goal is to get this property rented and stable as quick as possible. I am seeking advice regarding pittfalls regarding and his to avoid them during these tricky times. I doubt I will hire a lawyer, unless they pull me into their unfortunate situation. As you said I am pretty much on the bottom of the totem pole as they fight each other, and so they probably won't involve me.
I am strongly considering letting them both go if they want, and re-rent the home to other tenants. A bonus of this is, is a better rental window in the summer as supposed to November.
How should I proceed with the security deposit? I was going to ask them who wants to get it. If they can't agree I can then split it in half and send it to both.
Investor · Richmond, VA · Member since 2017 · 5 posts · 0 votes
9y
You should talk with the husband and find out if he wants to move (sounds like you're only hearing one side of the story so far). If the husband wants to stay and his credit and income support it, then consider it. The application that they completed in the beginning should give you some insight into his ability to pay, but I would still require an updated application and new credit report on just the husband as a part of drawing up a new lease. True story: My wife rented her condo to a couple who got divorced before the end of the lease. The wife really wanted to stay and had the means to do so. She's been my wife's tenant for over 10 years now!
Process Engineer · Rochelle, IL · Member since 2016 · 36 posts · 16 votes
9y
Thanks Deanna for the security deposit advice, also a mutual lease termination fee will help with vacancy as I get this re-rented. That is a great idea.
Thanks Winford, I have reached out to the husband. No word from him yet.
After all your great responses here are the three options in am considering:
1. Let the "wife" leave and have her name removed from the lease with approval from the husband. Have the husband continue on the lease till the end. In this scenario I am worried about the husband not paying due to financial burden, especially if there are legal fees.
2. End the lease for both parties if they choose, and include a early termination fee. (50% to 100% of rent). Bonus is that we will have a favorable rent window in the spring as supposed to November.
3. Leave the "wife's" name on the lease for liability reasons in case the husband does not pay. As in option 1, I am worried about non payment of rent as both their money is used in a legal battle.
Our goal is to quickly stabilize the situation when it comes to rent payments and house integrity.
Hobart, IN · Member since 2017 · 23 posts · 6 votes
9y
Obviously go with your lawyers advice. I'm only licensed in Illinois, and if this were an Illinois case, I would suggest the landlord holds ALL the cards in this fact pattern.
Our divorce judges don't have jurisdiction only 3rd parties (you), and the most they can do is force dad to indemnify mom for damages arising from a breach of the lease. An Illinois landlord would be under zero obligation to re-negotiate anything, and could treat any failure to comply with the terms as a breach, subject to relief from a forcible entry and detainer action (Eviction).
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
@Len Roche I have had two tenant couples get divorced and in one case the man stayed and in the other, the woman stayed. In both cases, I rewrote a new lease and removed the other party. If you think the guy will leave soon anyways, it is probably best to just have them both leave.
As far as how to handle the security deposit, they need to give you a forwarding address and you put both names on it. Do not get in the middle of any argument and do not split checks. It is their problem not yours. If they cannot agree on what address to send it to, then it goes to nobody. Send it certified mail and take pictures of the check showing both names on it.
It is worth wile to remind them that regardless of their troubles, they have a contract. They signed it together and need to end it together. If the place is not cleaned or rent is not paid, they are both liable. It sucks for them, but that is what happens in a divorce.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
Originally posted by @Account Closed:
What does your lease say? I put in an early termination service charge equal to 3x the rent to terminate the lease in 7 days. I would have re-rented in less than 2 weeks.
Have you actually had a court award you three months rent to terminate a lease? My understanding is the court will award you damages only after they have been incurred. In other words you would need to go to court every month for three months to collect three months worth of rent. And assuming you had a new tenant in the unit, the court is not going to award you rent when it is re-rented. I can see getting some fee for your time to rerent and lost rents, but 3X is the most extreme I have heard, leading me to believe it wouldn't stand up in court. Maybe NC law is different than other states in this regard.
Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
9y
It has never gotten that far, but i have no problem asking a judge for it.
1) I screen well.
2) It is in my contract. Is it enforceable? Depends on the judge. Maybe, maybe not. NC only allows 3 "fees" by law. So I have a ton of "service charges." It is doubtful that a judge would award me 3 months as per the lease if I was able to rent it out again in less than 3 months.
3) This is intended mainly for when you are transferred by a company and the company is gong to pay for the costs of the move. However, the option is there though for others. If it isn't in the lease, then you can never point it out when they call you asking to break it.
Most renters are not very savvy in my experience. Has any of your renters actually read the lease? I have never had one read it. I can come up with a ton of things to add onto a judgement. There is always damage. Also, just because I have a judgement for $1700, doesn't mean that that is all they owe me. That is just what the court says they owe. Of course their security deposit will go toward the full amount they own me and usually the balance is just under the judgement amount.
Philadelphia, PA · Member since 2015 · 177 posts · 64 votes
9y
Do not allow anyone to remove their name from the lease. It brings you no benefit and you can be getting in the middle of a legal battle with the divorce. Look at it as a breach of lease agreement and discuss alternatives as to how to break the lease, which could include you showing the property before they vacate.
Regarding the husband staying, look at it as a new tenant. Does he qualify on his own (consider the financial burden of his pending divorce)? If so then break the lease and the have him sign a new one. Being helpful during a hard time like this is both good for the condition of your property and karma, but that does not mean making irresponsible decisions that open you up for financial loss.
Help them cut the cord the best way possible and get a stable tenant.
Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
9y
Do nothing. This is their problem, not yours. You want to keep as many people on the lease as possible in order to collect any delinquent amount due. That way, the wife has vested interest in making sure the hubby pays.
Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
9y
Way too early to get a lawyer involved. If there is some sort of non-payment, then you can file a judgment at your local county courthouse. If their credit is decent they do not want this on their record.
I collect first month, last month and security deposit when they sign the lease. If they want out early, it's a 3 month penalty. If this was ever to happen I would be able to collect this because I have 3 parents that co-sign for their college kids. The parents have excellent credit and do not want it dinged.