Residential Landlord · Indianapolis, IN · Member since 2010 · 592 posts · 138 votes
If my tenant does not pay rent and I serve them with a pay rent or quit notice, what does quit mean? I understand the basic meaning is that if they don't pay the lease is done and I can evict, but what if they choose to pack up and leave before the prescribed number of days in the notice? If they have left, I don't need to evict them, right?
My confusion is whether or not I can still hold them liable for the remainder of the term of the lease or if my pay or quit notice offered them a way out?
Example: I sign a lease for 1 year with a tenant. After 6 months they stop paying, I serve pay or quit, they move. How much can I legally get a judgement against them for? Just the days they were still there between the start of the month and when they moved out? The full 6 months of the term they did not pay for? Some other amount?
Residential Real Estate Agent · Mt. Pleasant, SC · Member since 2010 · 257 posts · 130 votes
15y
I'm sure this varies by state, but you can generally hold them liable for any unpaid rent, so the remaining 6 months in this case. However, you have to look for a new tenant, and then you can only charge them for up until the new tenant moves in.
Residential Real Estate Agent · Mt. Pleasant, SC · Member since 2010 · 257 posts · 130 votes
15y
I'm sure this varies by state, but you can generally hold them liable for any unpaid rent, so the remaining 6 months in this case. However, you have to look for a new tenant, and then you can only charge them for up until the new tenant moves in.
You're blending two issues; (1) What does quit mean ; and (2) what are my rights in court regarding the future monthly rental payments contracted to in the 1 year lease.
Without looking the term up, I believe the "quit notice" literally means you must quit possession of the property. Most eviction actions are actions for possession; so, if you (tenant) quit possession as requested I do not need to bring an eviction action against you for the court to award me possession.
The second issue is your ability to get a judgment for the remainder of the monthly rental payments in the lease. A lease is a basic contract so you have a contract claim for those missed payments. It is truly up to the court in its equitable powers to determine what they will award you in damages. You should keep in mind that you have a duty to mitigate damages. So, not only to you have to evidence the tenants breach but you have to prove that you took reasonable steps to get the property rented and were unable to do so.
to answer your question: Yes. You can hold them liable notwithstanding the fact that they vacated pursuant to your notice to quit. The claim for what they are liable for is based on the terms of the lease but the ultimate award is granted by the judge subject to your duty to mitigate damages.
And then as George said,..it's a matter of what you are going to be able to collect. Good luck.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
Quit means they leave. Best, according to my lawyer, if they hand you the keys or leave them behind. If not, and they appear to have left, you should video the place, pack up what's left and get ready to re-rent the place.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
15y
As far as collections of unpaid rent goes theoretically you are owed the entire rent but with residential the court will go easy on the tenants. You also can't collect double from an old tenant and a new one.
One month penalty is what goes in my agreements. Setting a fee reduces a chance of a court battle.
If it typically takes more than a month to rerent then fix a longer penalty.