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Updated about 4 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Dallas, TX
29
Votes |
20
Posts

Tenant Early Termination and Unresponsiveness

Account Closed
  • Rental Property Investor
  • Dallas, TX
Posted

Hello BP. Thank you in advance for any guidance being provided.

We have a situation with our first property in Arkansas (gotta learn somehow huh?). The tenants had rent due and have been on time for the last 4-5 months, but this time they were late. So we started by sending reminder text after rent was due and another call the day before they would be beyond the 5 day grace period according to Arkansas law. Still no response.

After the 5 day period expired, we finally got them on the phone and received a long story about how the man lost his job and was diagnosed with cancer and they wanted to move out on 12/23 to go back with his family in another city. Now, I really dont want to speculate on whether or not his story is legitimate and I really don't care.

Our lease clearly states that early termination results in us keeping their security deposit and a penalty of 1 month's rent. This would mean the tenant owes us $1525 for past due rent (with late fee), $1450 for one month's rent, and we keep the security deposit. So they would owe us $2975 total. We figured they would not pay the full amount regardless so we offered to remove the late fee and pro-rate the past due rent for a new total of $1870 to at least get something. Crickets from them since we verbally agreed on the phone to this amount. We have asked them to fill out an intent to vacate form and a written agreement for early termination and move out on DocuSign to which they have not responded.

As of today, we have confirmed they have moved out of the home, but I want to make sure that I am handling this correctly. I'd really rather not go to court as I doubt this tenant would be able to deliver the requisite funds and if the cancer thing is true then that's kinda rough.

What is the best course of action?

  1. Post a 3 Day Notice to Quit to formally start the eviction process (is this necessary if they're voluntarily leaving?) and court filing
  2. Get them to sign an intent to vacate form and just take the L and find a new renter (no court filing)
  3. Get them to sign an intent to vacate form and take them to court for not upholding the contract

        Most Popular Reply

        User Stats

        263
        Posts
        217
        Votes
        Dan Travieso
        • Investor
        • Fayetteville, NC
        217
        Votes |
        263
        Posts
        Dan Travieso
        • Investor
        • Fayetteville, NC
        Replied

        Did they take all their personal belongs with them when they moved out? If not, you will probably need to go thru the court process in order to take possession. If they did take everything out then I would still file a 3 Day notice to Quit and then change the locks. However you need to be compliant with Landlord Tenant laws in Arkansas of which I am not familiar.

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