How do you prevent midnight movers?

Question

Hasn't happened to me yet (thank God) but got me to thinking - what can you do to avoid this? I'm assuming it's impossible to avoid & just the cost of doing business? Just chalk up to experience & move on?

Brandon Turner · Answer

Hey Scott W. I also don't have a huge problem with this since I switched to month-to-month leases, like Jon Holdman. However, like others have said - requiring a good security deposit helps. Or, if your market will bear it - require first, last, and deposit. Then, if they leave - at least you have a month to find someone. As long as I have that deposit - I actually would be kinda happy if someone left suddenly - clearly they were having problems and I didn't have to evict. I call that a win.

Rob K. · Answer

Michigan law says that the max I can charge is 1.5 months rent. The majority of landlords charge one month. I usually do a month's rent plus $50 as security if they're very qualified and 1.5 monthsd if they're marginaly qualified.

Scott W. · Answer

Rob K rob, how many month(s) do you typically require for a security deposit?

Dan S  that's a really good idea. idk if a lot of renters can caugh up 2 months security + the rent? quite a few tenants (homeowners as well these days) don't have a pot to piss in.

Dan S · Answer

you will never stop this. I found contacting previous landlords will give you an idea of their rental history, but doesn't really fit the "time being" aspect of our economy/circumstances. What I started doing is requiring a 2nd security deposit no matter what..

I also gave all my tenants an "out clause" which requires them to forfeit their deposit, give me 30 days notices, and require an additional months rent to leave. Since then, I have saw a bigger success with complying with my terms.

If I re-rent the place rather quickly, I will refund the previous tenants deposit (minus cleaning/repairs), but if I don't, I know I have a 3 month cushion.

If a tenant is going to leave, you can't stop it, but having these lenient terms has provided me with some type of respect that gives me a heads up. I think so far it has been more positive than negative and really gives you the upperhand in the situation.

As of currently, I have only had 3 tenants utilize this "out" and they have actually helped me find a new tenant. I have only kept the deposit/30 days rent from 1 tenant and it turned out to be way cheaper than an eviction.

Jon Holdman · Answer

I had one very similar to Rob K, too.  Late a few days with the rent.  Called to pick it up and they said "we're in Kansas."

I've had less trouble after switching to month-to-month leases.  A longer lease binds your hands, but, as you see, when tenants want to leave, they go.

Scott W. · Answer

Rob K you need $10k to help contributing to publish that book?

Rob K. · Answer

I just had some tenants move out last weekend. It technically wasn't a "midnight move" as they had told me the week before that the husband lost his job and they were moving. They were good tenants for two years. I guess that moving without notice is better than them staying without paying. I'd rather have a suprise vacancy than a nasty eviction.

Back in the 90's, I had a family that was late with their rent. The wife called me and said her husband got paid the next day and I could stop by and get the rent at 1pm. When I got to the house, it was completely empty. There wasn't even a gum wrapper left behind. It was really weird. I'm 99.9999% sure they pulled a midnight move, but I think there's a .0001% chance that they were abducted and murdered.

Jon Klaus · Answer

I agree that exhaustive tenant screening is number one. Requiring a large security deposit is helpful. I've experimented with under market rent and a deposit equal to two months rent.  This seems effective on homes that are in strong demand.

Kyle J. · Answer

I'd say you're right -- it's probably impossible to avoid.  If someone really wants to move, there's not much you can do to stop them.  However, I think you can definitely reduce the likelihood of this happening by doing good/thorough tenant screening on the front end to make sure you're putting in quality/responsible tenants.