Originally posted by @Brandon Shoults:
I have a few rentals and am just getting started with this as a full time gig. So I'm very green in this space of operation. I keep running into the same issue of tenants moving out without giving proper 30 day notice. I'm fishing for insight and advice on how to deal with no proper notice to vacate a space. It's leaving me with unwanted vacancy and incredibly inconvenient extra payments on spaces i'm trying to fill. I know this is all part of the job and I understand all the reasons people vacate but I'm still left with the awkward situation of having to make judgment calls. Currently I'm doing the classic “House Hack” if you will, with one property I own. (I'm renting an extra bedroom in my house) its rented to a 60 year old woman who is very sweet but is running into some sort of respiratory issues due to what she says could be traces of mold. We also have a wood stove that could be contributing to the issue with traces of smoke lingering into her room. She just moved in at the beginning of the month so it's been less than 10 days. She is telling me she is having to immediately move out due to health issues that could be linked to the house and traces of mold. I have never heard anything like this from anyone else staying in that room. Our lease clearly states that a 30 day notice is required for either party to terminate the agreement. We are on a month to month agreement. She is requesting that I give her the money back for the remainder of the month. Obviously It's a difficult decision for me because I want to be a nice guy. On the other hand I also don't want to get walked on by all my tenants. It seems like a risky liability with it being linked to health issues. Although if someone told me they couldn't work due to health issues I would tell them the rent is still due. Am I in the wrong to ask her to give her official 30 day notice and keep the rent money for the month?
Morally i'm ok with saying that although legally i'm not sure how it would play out as its linked to what she is saying could be trace mold in the home. There are no mold issues as far as I can tell. I would not be writing this if this was not continuously occurring.
Another issue that is closely linked to this is the dilemma i'm having for how much to charge for a deposit and whether or not to charge last month's rent. In the past I had charged first month, last month and security deposit. Recently someone stated that I can not charge over 2 months rent total for all three of those combined. With this particular space rent is 600 for the room I was originally asking first last and deposit.(utilities included) Which would be a total of $1800. The son of the woman who just moved in who was doing all the talking with me on letting her move in informed me that what I was trying to charge was illegal. ( I'm in California) so I only charged a total of $1200 which was two months rent (First month and deposit). I was also nice enough to let him pay the security deposit over a period of two months. as in 900 to move in, then 900 the second month to fill the extra 300 required for the remainder of the security deposit. As much as I've read about it he seems to be correct.
Apologies for the long winded description but I'm making a lot of mistakes and enjoying learning from them.
Any advice would be appreciated. Don’t hold back!
Tell me I'm being an idiot if you feel. I want constructive criticism. I often question my “nice guy” decisions.
Thanks!
Hey Brandon,
You aren't an idiot. Nobody on this forum was born knowing how to deal with all tenant issues.
So, first, in case you don't have it, this book was my bible renting apartments in CA. It includes contracts and all other forms you need. Easy to understand for you and the tenants (as far as the contracts go):
https://store.nolo.com/products/the-california-landlords-law-book-lbrt.html
Next, security deposit in CA can be up to 2 months' worth of rent. It is not rent. It is security deposit only. If the unit is furnished it can be 3 times the rent. This money is not rent money. It is only security deposit money.
So, don't get confused with the first, last months rent plus deposit. Don't let tenants confuse you on that. Security deposit can be the same amount of 2x rent or 3x rent. This money is not rent money.
So, when a tenant moves in they need to pay for that month's rent in advance, right? So, they move in on January 1st, and if rent is $600, they give you $600 on January 1st for January's rent. This is rent money.
AND they give you the security deposit. So, if it's unfurnished, you can charge 2x the rent for the security deposit max, so you can charge $1200 for the security deposit.
So, on January 1st, they need to give you $600 rent plus $1200 security deposit.
Now, you have 21 days after they move out to return any money from their security deposit. And......security deposit money can be used for unpaid rent as well as damage beyond normal wear and tear.
What I'd do with this tenant is tell her she's welcome to move out now, and you'll need her forwarding address and you'll refund any money owed to her within 21 days per California law.
And, I'd tell her that if she feels strongly about suing you, she's certainly got the right to do so. Rinse, repeat.
Tenants pull out the mold card when they want out of a lease. Just call her bluff.
Now, you then need to take reasonable means to get the place rented as soon as reasonable, using reasonable means. You are not required to take anybody you wouldn't normally accept and you don't need to jump through hoops. You just have to take reasonable means. Document your efforts. It's my understanding that the courts in CA figure it shouldn't take you longer than 30 days to get a place rented.
She has the right to break her lease - but - you get to charge her your actual out-of-pocket losses due to her breaking the lease. You get to charge her rent until you find a replacement.
Security deposits can be used for unpaid rent and for damage beyond normal wear and tear.
Lots of tenants will bail and let their landlords take their last month's rent out of their security deposit. It's not illegal to do it and it's really understandable, because they just can't normally afford to come up with moving costs, etc.
But, you shouldn't be losing money from tenants moving out. You should be using their security deposit money to cover rent they bailed on, in situations like this.
So, I'd be non-committal. Just tell her you have 21 days to refund any money due and you'll be checking with your lawyer as far as how to handle her breaking her lease, and if she really feels she has a case to sue you, then she's within her right to do so.
You can do it in a reasonable tone of voice. "I know you'd like to have your money back, but I have 21 days to refund your money and my lawyer said I need to wait to be sure there is no damage. Be sure and give me your forwarding address so I can get it to you as soon as possible." That should keep them from doing anything crazy. Just use the broken record technique - just keep repeating that same sentence every time she starts in again.
They don't have money to sue you. And any fair housing organization has their hands way over full with way bigger fish to fry than someone trying to get out of paying rent, claiming wood smoke bothers them in a house they rented a room in - with a wood stove they knew about.
If in some weird universe she actually did sue you - then deal with it. But, look at the odds. I wouldn't worry about it.