Tenant turnover. How do you know they'll actually leave?

Question

Landlords- how do you handle turning over a unit and ensuring your tenant is actually going to leave at the end of the lease? Currently I have a lease ending 7/15 and want to have the next tenant in on 8/1. I will start advertising the property online, current tenant is not being cooperative in showing the unit. I don't want to sign a lease with someone and then not have the current tenant actually gone on 8/1. How have you handled this in the past? Is it best to wait until we know the tenant is out to start marketing it? I haven't had to do this before as my current rentals have had the same tenants for years.

Thanks!

Matt M. · Answer

@Megan Brooks

You don’t. This is exactly why I don’t bother to show houses/advertise until the property is empty and fixed/cleaned and ready to go. I don’t want to be responsible for someone needing to move in and old tenant hasn’t moved out.

Greg M. · Answer

You need to have a holdover tenancy clause in your contract. Basically, rent is $1500 a month and lease ends 6/1/20. If tenant fails to leave, it becomes a month-to-month lease at $2500 a month. The new rate has to be high enough to cause pain to the tenant, but not so high that a court would reject it. You just want to strongly encourage the tenant to comply with the lease.

For the new tenant, you need wording in the lease that if you cannot deliver the unit at the agreed date due to issues outside your control including prior tenant refuses to leave or repairs need to be made, both parties can agree to extend the move in date or the new tenant can choose to terminate the contract.

Amy Aziz · Answer

@Megan Brooks, We normally did not offer to do that unless it was a week or two prior to the move in. Some people would request to do it sooner. In those cases, we would advise them the current residents may decide to stay and we may have to cancel this.

Megan Brooks · Answer

@Amy Aziz Thanks! Can you explain the prelease?

Sean McKee · Answer

It depends on what you mean by uncooperative. If it’s simply because they don’t want to be inconvenienced, then I’ll show them the clause in lease that allows showings during reasonable hours of the day and with enough advanced notice. If they are particularly animated or kind of dirty, I’ll give them 25 dollars automatically and 75 more if I rent it. This seems to work to ensure they are more cooperative and cleaner. Bottom line is I’ll be respectful, but I’m showing the unit. Hopefully you have this provision in your lease.Unfortunately if they are the other kind of uncooperative(constantly late, major lease violations, or filthy beyond belief), you probably are best letting it sit vacant. They are likely a high risk of holding over or scaring prospective tenants away. I’ve unfortunately had all these issues and one person actually holdover. It’s better not to have them in the picture while trying to lease.Vacancy is too expensive to not try and reasonably rent the place, unless of course the unit needs major work. There’s always the risk of something going wrong, but if the tenant was at least decent, they likely aren’t going to want to risk an eviction on their record.

Good luck!

Franklin Romine · Answer

Putting a for rent sign in front of the property is a good way to stir things up.

Franklin

Max T. · Answer

I will only pre-market if the tenant is cooperative AND tidy. Offering a $100 bonus for their assistance in helping get a lease signed prior to their move out is an idea.

Megan Brooks · Answer

@Theresa Harris yes I did get in writing that she's moving out.

@Matt M. good advice! I'm not expecting same day move in/out, was hoping for 2 weeks empty. Thank you.

Theresa Harris · Answer

I'm assuming you got it in writing that they are not renewing the lease?  The problems usually happen when the tenant is behind in rent and the landlord wants them to move out.  When they sign the paperwork saying they are not renewing the lease, or moving out...you need to tell them what happens if they fail to move out on the specified date.

Matt M. · Answer

@Megan Brooks

While I get what @Greg M. Is saying about the holdover clause, he is in California. You are in Nj, I’m in Pa. we can get a significant amount of snow. What happens on the move out day and there’s 8” of snow? Or U-Haul screws people with the truck? This stuff happens all the time. We have rentals on a snow emergency route where there’s no parking allowed for a day or two or 3. You could show an occupied property, and it’s in ok shape, after move out it’s dirty, needs some work, etc, new people supposed to be moving in same day and the property is now not ready. To many variables for same day move in/out for me and not worth it. Maybe it’s bad business on my part, but I’d rather lose a few weeks or a month and make sure all is well with the property. And so would my clients, I handle turnovers and all repairs/maintenance for 2 clients, with 35 properties, along with my own. In the last ten years, I’d say 3 times a property was ready to go on the market same day as move out. I’m not about to make people homeless with a non ready property when it’s supposed to be.

Tenant turnover. How do you know they'll actually leave?

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