Tenant canceling lease before even moving in.

[Derek Smith]

Hello,

What would you do in this situation?

I listed a property for rent found a tenant with excellent credit and income, signed a lease and got 1st month rent with security deposit yesterday.

They were due to move in August first, but just tonight called and they want out of the lease with some story about the father getting sick and needing to move there instead.

My lease is specific about needing 60 days notice and losing security deposit if you don’t complete the lease term. (12 months)

I should be able to rent the house easily, but probably not for Aug 1st so I’ll be losing a months rent. And I already took the listing down and cancelled a couple people I had booked to show it for today.

Would you keep the security deposit only?

All?

None?

[Theresa Harris]

Report it ASAP and you may be able to rent it for Aug 1.  Remind him they signed a lease (what are the chances of the day getting sick to the extent that they have to move in that short of a period of time).  You will do your best to get it rented, but he will lose the deposit if you can't get it rented for Aug 1.  Call back the people who you had to cancel as they may still be interested.

In the past when that happened, we had a partial deposit and kept it (the applicant actually told us to keep it as it was last minute). We were still able to get it rented to one of the other people who had viewed it.