How would you handle these tenants?

Question

I started another thread about this, but now it's taken a new twist.

I had three roommates living together paying $850/mo. (total). One of the roommates moved out with little notice in mid October.

I was prepared for the worst, but the two remaining tenants were able to come up with November's rent on time on their own. However, they only paid $600/mo. at their last place so I'm not sure if they will be able to keep this up.

Then one of the two remaining tenants sent me an email hinting indirectly about what would happen to the security deposit if they had to move out before the end of the lease.

I am thinking of two options:

1) telling them I will let them out of the lease early if they stay at least until January 1st (so I don't have to deal with the holiday vacancy problem) and stay current on the rent until then, and I will give them back the deposit if the place is in broom clean, undamaged condition, as per the lease.

2) lower the rent to $800 to keep them there (I haven't had any real issues with the two remaining people, and they are taking good care of the place).

The thing that concerns me about Option 2 is that I still don't know for sure if they can consistently come up with the full $800/mo. or not. And I don't know whether I would have to start a new lease with them or if I could change the rent on the existing lease.
Also I don't know if lowering the rent could cause issues with a potential eviction if they can't come up with the $800/mo.. $800/mo. is absolutely the lowest I would be willing to go with the rent.

So would you do Option 1 or Option 2?

Steven Hamilton II · Answer

No, stick to your contract they signed. They knew what they were getting into. If they can pay most of it. You can let it go. Or you can put them on a payment plan. My point is get what you can out of them since they are breaking the contract. You can then if they don't very easily file and get a judgement against them or you can choose to not pursue it at that point.
Remember YOU are the whose bottom line is being hurt by this.

Jon Holdman · Answer

Agree with Richard. What does you lease say about breaking the lease? Mine says there is a charge. That charge means they aren't getting anything back from the deposit if they do. Now, I only do month to month, so this isn't a huge issue. And if the tenant want's to leave sometime other than the end of the month and gives me enough notice, we can figure something out. But just stick to your lease. Just reiterate what the lease says and see what they say in return.

Richard Martin · Answer

Bienes; Seems to me you are over thinking this. I suggest you just answer their question. They have not been in place long enough to warrant any special considerations.

Bienes Raices · Answer

Yeah, they are annoyed at the roommate, not me. They aren't malicious people, so I don't think this will result in a horror story. Lesson learned: don't get sucked into roommate drama.

James H. · Answer

Bienes, it sounds like the two that are there are reasonable people. I think if you treat them with respect they will direct their anger at their deadbeat room mate and not be trashing your place. I am very interested in learning how this turns out for you.

Bienes Raices · Answer

OK thanks for the advice. I'm just going to tell them in an email that they have to abide by the terms of the lease and let the chips fall where they may. I am concerned about getting back a damaged unit that will take a lot of money to repair, but I don't want to let that fear push me into making side deals with tenants.

Bienes Raices · Answer

Thanks. My lease says they must pay a two month's rent penalty to get out of the lease early, and the security deposit is forfeited if the terms of the lease are not met. (Unfortunately doing month to month leases is not allowed where I live due to a special law here)

My only rationale for offering the security back was to give them an incentive to return the place undamaged.

I don't know whether asking for the two month penalty to get out of the lease is realistic. They don't have the money to pay it, and I would have to go to court and get a judgement against them, which I might never be able to collect on.

Would it be smart to tell them the 2 month penalty is waived but they will still have to forfeit the security deposit if they break the lease?

How would you handle these tenants?

How would you handle these tenants?

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