They aren't moving in???

Question

Tenants are supposed to move in this Tuesday. It is a group of three people. I was trying to set up a time for the group to sign the lease and pay the first month's rent (I have a $900 holding deposit from them already).

Two of the people (couple) have not be answering their cell phone. Third person says he has not been able to get in touch with them either. I had them sign an agreement about a week ago that the utilities are their responsibility, they must put them in their name, etc. Utility co.'s say that no one from the group has called yet to switch the utilities on (they are coming out of my name on Tuesday).

I don't know what is going on, and I'm hoping it's just a misunderstanding that will be cleared up no later than tomorrow. In the event that it's not, should I just confiscate the $900 if they don't sign the lease by Tuesday?

Ralph S. · Answer

While certainly not enough info to draw any hard conclusions, see the red flag for what is is worth at this point. If they don't answer or respond to their cell phones, meet agreed upon schedule for assuming utilities, signing the lease and moving in, are they displaying the characteristics of tenant you would really want? :roll:

Joel Owens · Answer

The 900 deposit was it a check?? Did it clear?? Even if it did clear is it coming back after it cleared?? 900 doesn't seem like much of a deposit compared to damage they can do to the unit and lost rent over time if you have to evict and repair.

Bienes Raices · Answer

Well, I wish I had listened to the advice given on here. As it turns out, they are very cooperative, nice people (despite the initial problem with utilities)--however the roommate (the third person in the group) screwed everyone including me by moving out suddenly. Now the remaining people probably won't be able to continue to pay the full amount of rent--I think they will leave voluntarily, but I'll serve the 3 day notice in November if it comes to that. And now I will be left with a vacant rental at the worst time of year, and a potential eviction and damaged unit in the worst case scenario. The warning signs about the third roommate were there on the credit report, etc., but I was trying to fill two other houses at the same time so I took a chance in order to get someone in there and ease the burden of driving around and showing the three properties. As it turned out, it was a bad decision.

Bienes Raices · Answer

update: 2 months later and they seem to be working out--paying on time, the place looks nice on the inside and outside, not calling/complaining about stupid things. It's far too soon to declare them "good tenants" but I'm relieved that there haven't been any additional problems so far.

Account Closed · Answer

In some states it is necessary up front to tell the tenant if the deposit is refundable or not. If refundable under what circumstances might the deposit be refundable.

Steve L. · Answer

I would start your advertisements again on the property and try to find someone else. It might just be they are out of reach for some reason, so if you hear from them and they have a valid explanation rent to them. Otherwise try to find someone else and use the deposit to cover your damages (if you rent it quickly and they contact you I would probably give them at least a partial refund).

Bienes Raices · Answer

Well, amazingly they have continued to pay the full rent amount, within the grace period, without the roommate there. I received December's rent yesterday. I don't know if they will crash and burn before the end of their lease, but they seem to be trying to do the right thing (unless they moved a new roommate in there without my approval--although I haven't seen any new vehicles parked there). And now I am over the "holiday hump" for finding new tenants if they do break the lease and move out.

Bienes Raices · Answer

I think it is worth it just to wait for the right person/people. In this case the third roommate had moved around a lot -- six months here, a year there, etc. He didn't have the mindset to stay in one place for long or take a lease seriously. The other two people had better references and rental history but with roommates it's the weakest link that's the most important, as I've learned.

Bienes Raices · Answer

Brian, no problem...this is the first time I've ever done roommates. I don't want to do it again unless I have to. From what I've seen it's a lose-lose-lose proposition: 1) You either evict the whole group and start over if one moves and the remainder can't pay or 2) You waste your time screening new people to find a replacement person for the one who left or 3) You allow tenants to do the screening for you and potentially pick another unsuitable person because they don't know how to do screening.

James H. · Answer

Thanks for sharing Bienes. Have you had much success with room mate situations in general?