Lease breaking tenant now wants to stay

[Cory Melious]

Hello everyone;

Im in a pickle and would love some insight into how to handle it.

I have a tenant who’s lease is up at the beginning of January. This particular property has forced air heat and the tenant is responsible for their own oil. Suffice to say, the property is priced accordingly.

Early in September the tenants decided they didn’t want to pay for their heat, and told me they intended to break their lease early. I responded with the customary, “you need to give 30 days notice, and since its already mid Sept you’ll need to wait until Nov 1 to move” They understood, and let me know they had accepted another apartment for Nov 1 and would be out by Oct 31.

I’ve now spent the month finding and accepting a replacement.

This morning (10 days before they are slated to move out) they have decided to stay in the apartment for some unknown reason (They texted me last night, and I am delaying the convo until I have some ideas how to handle first).

Here’s the rub though. The new tenants are not ideal. They are a couple and a single guy roommate situation. They make sufficient rent, but according to their last landlord they are late with it often (but they always pay the late fee). I know it’s not ideal but they were the best to apply.

The outgoing tenants, however, are very good tenants (besides the early breaking of the lease). They were never late on rent, keep a VERY clean household, and rarely call me with issues.

NOW I don’t know how to handle this new situation. If I let the outgoing tenants stay because they are more responsible renters, how can I make it absolutely clear I will not accept an early termination again. OR if I kick them out and accept the new tenants, I have no way to know if they will be quality tenants.

[Patricia Steiner]

Did you sign a lease with the soon-to-be new tenants?  If so, you have a contract in place which you legally have to honor.  If not and you want to renege on your commitment to lease to them, please do it today so they're not homeless.

If you haven't execute the lease with the new tenants, I recommend:

1.  Telling the current ones that you have committed the property to new tenants who are expecting to move in shortly; you're in an ethical dilemma not of your making nor are you happy to be potentially leaving them homeless because they have changed their minds.  (Purpose: Not cool or appreciated).

2.  Since they gave notice of termination, a new lease is required - and one that is equivalent to what the new tenants accepted.  Include a small rent increase; shore up any lease conditions.  Let them know they would need to commit and sign today.  They owe that to you and the other tenants.  (Purpose: If they did it to you once, they'll do it again if you leave it as "forgive and forget;"  will they change their minds again when the first bigger fuel bill appears?).

The reality is that the current tenants dropped a bomb on you.  And then came back and said "oh never mind."  When the bomb dropped, it cost you money and time (which cannot be replenished) to find another tenant. It's not okay.  You did mind it.  

Act from a position of strength.  It will put your tenants on notice that they can be replaced and that manufacturing chaos comes with a price to pay.