Subtenant Won't Schedule Move-Out Inspection

Subtenant Won't Schedule Move-Out Inspection

Chicago, IL · Member since 2015 · 414 posts · 94 votes

I have a tenant in a triplex whose lease is up at the end of the month, but they bought a house 5 months ago and found a subtenant. I'm holding the tenant's security deposit and the tenant is holding the subtenant's security deposit. The subtenant signed a new lease with us starting May 1 with no deposit but a $500 move-in fee.

This subtenant has been a pain, but not enough of one to risk vacancy. I texted her this morning asking when in the next few days works for her to do a move-out inspection. We can then give the tenant back their deposit who can in turn give her back her deposit and she can pay the move-in fee. She's telling me she's swamped all week. I know thew type of people who are very busy and she is not one of them. She finally said she'd get back to me with a time that works in the next few days.I won't count on it. 

My concerns are: 

1. I can't return the original tenant's deposit until we do an inspection.

2. I'm concerned she plans to not pay rent starting May 1 and see how long she can stay for free seeing as she's already got squatter's rights.

I'm thinking I give her until later today to call with a time and then say tell her I'm coming with the original tenant in 48 hours and we're going to do an inspection ourselves. And if she doesn't pay the move-in fee, she'll be squatting and we'll have to begin eviction. And if she changed the locks, then she's trespassing and we call the police.

Is that how you'd do it or is there a more amicable way to handle this?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y

Subleasing is bad news and you should avoid it.

Stop asking for her permission and tell her you will inspect on a specific day at a specific time. She is invited to attend but her presence is not necessary. If she attempts to stop you or change the schedule, tell her she is welcome to move out.

I'm more willing to risk a month of vacancy than to deal with a Tenant that thinks they own me.

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  • Summerville, SC · Member since 2018 · 588 posts · 252 votes
    8y
    Consult your local landlord-tenant law for rules of a tenant staying beyond lease timeframe. Personally, I would charge a per diem occupancy fee (has to be in lease). Also in your lease should be an ordnance about landlord right to enter. Typically this is for repairs, showing the prop, etc
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    Subleasing is bad news and you should avoid it.

    Stop asking for her permission and tell her you will inspect on a specific day at a specific time. She is invited to attend but her presence is not necessary. If she attempts to stop you or change the schedule, tell her she is welcome to move out.

    I'm more willing to risk a month of vacancy than to deal with a Tenant that thinks they own me.

    The DIY Landlord Book4.7243 Reviews
  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    You schedule the inspection . Not the tenant 

  • Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
    8y

    Do exactly as @Nathan Gesner said. Give notice of when you are coming whether they are ready or not. And like you said, set a definitive time that they have to pay the move in fee or you will begin eviction proceedings. Also, you should have at least 30 days depending on state laws to return the original deposit. Depending on how you worded your lease with the original tenant you can keep their deposit since they brought in a subtenant. That will at least help cover the missed rent for May if the subtenant doesn't pay. This approach may not be legal where you are so check landlord tenant laws or with a lawyer.

    Next time a situation arises like this avoid subleasing. Tell the current tenant they are on the hook for the current lease term until you find and qualify a new tenant using your criteria. If they bring someone to you great but do not let them pick the new tenant. New tenant pays their own deposit and rent. You could even do the move out and move in inspections at the same time barring any major repairs you would need to do. 

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    8y

    I always advise against allowing a sub lease but what is done is done

    As far as returning the original tenants deposit, have they given you a forwarding address?  In Texas, the 30 days to return or account for the deposit begins when the lease is terminated AND you have been given a forwarding address. This might give you some time to work it out 

  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    8y

    Just schedule the inspection and tell the tenant they are welcome to be there.

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    8y

    Thanks for the advice, everyone. I'll keep you posted.

    I thought that here in Chicago, you can't deny a sublease if they bring you a "similarly qualified" tenant. Is there something you guys do to get around that? I hate subleases too.

  • Contractor · Chicago, IL · Member since 2017 · 68 posts · 48 votes
    8y

    @Art M. For future reference, I would check your lease. We us the standard Chicago Association of Realtors lease and it expressly prohibits subleasing the property without prior written consent of the landlord and even then does not terminate the obligations of the original tenant (I just double checked the ones signed this week to make sure :).

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    8y

    @Ann Folan

    Hey Ann,

    The CAR lease says, "Tenant shall not sublease this Lease without the prior written consent of the Landlord, which shall not be unreasonably withheld."

    I was told by a lawyer that means that if they bring me someone who's "equally qualified" on paper and I say no, that would constitute unreasonable withholding and might cross over into discrimination. Is that not correct? I would love to be able to deny subleases.

    I gave the tenant 48 hours notice yesterday and told her she needs to pay the fee and May rent for the lease to be valid and now she's trying to schedule. Well, what's actually happening is she started a group text with me and her boyfriend or whatever and now they're arguing about their own schedules. I'm just going to come when I gave notice for. These people are crazy and that's why I hate subleases. Crazy isn't a protected class.

  • Contractor · Chicago, IL · Member since 2017 · 68 posts · 48 votes
    8y

    I think there are lots of reasonable reasons why I would not approve a sublease. It honestly has never come up for us and I did not think it was much of a thing here in Chicago but maybe it is in some areas? I would release someone from a lease and find my own screened tenant before I would allow a sublease. Too much drama and potential chaos over what might be one months missed rent between tenants.

    Crazy is not protected and not worth it. Too bad it doesn't show up in tenant screening!

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    8y

    @Ann Folan This is my third sublease and they've all been a hassle. But I'm looking at it like it's more hassle but more parties liable for rent is always better. Will probably just do new leases going forward. I've had good luck doing that before. 

    I used to work in relocation so I saw tons of leases and a lot of leases have lease cancellation clauses where the tenant pays 1-3 months rent to break the lease. The CAR lease doesn't have that and I don't want to deviate from it. Wonder why that is though. A lot of times, the relocating employee's company would cover the cancellation fee in full.

  • Contractor · Chicago, IL · Member since 2017 · 68 posts · 48 votes
    8y

    @Art M. Dang. If this is a recurring issue I think I would have my attorney draft a rider for subleases to add to the standard lease. We have one for pets that is signed along with the lease, why not have one for subleasing? There has to be a way to draft language that makes it undesirable for the tenant to want to sublease a space.

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    8y

    @Ann Folan You're right. I'll do that. Thank you, Ann.

    What's your pet rider? Something like 60% of tenants have pets these days so we reluctantly accept them and collect a fee.

  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    If you already have concerns that this tenant won't pay rent you should not renew a lease.

  • Contractor · Chicago, IL · Member since 2017 · 68 posts · 48 votes
    8y

    @Art M. sorry for the delay -- did not see the question! I will see if I can find a copy of the pet rider, which they have to sign at the same time as the lease. It lists the dog breed and weight then outlines their responsibilities - basically they are solely responsible for the dog, they have to pick up after the dog, the dog is not allowed to run free and they are responsible to any and all damage the dog causes. Basically it is a hold harmless agreement in relation to their dog. I agree, especially if you are in the good northside neighborhoods I would say more like 80% have dogs!

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