Tenants moved out and let someone else move i n

Minneapolis, Minnesota
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Tenants moved out and let someone else move i n

Raquel D.
Investor · Shakopee, MN · Member since 2017 · 102 posts · 60 votes

Hi everyone,

I have a 4plex in Bloomington, and I was recently told that a tenant moved out without notice and let a friend or family member move in.  Old tenant is asking me about their security deposit; new resident wants to sign a lease with me.  I could really use some guidance/insight on how to navigate this!  I recently got this building so I inherited the tenant and I don't have a set process for tenant screening yet.

For the security deposit - how much do I need to refund in consideration of the following?

  • The lease provides a specific 60 day notice period to terminate a lease, which obviously wasn't followed.  
  • For damage, I don't know what the damage of the unit is yet, although there were scuffs all over the living room walls when I recently replaced a wall unit AC.  I also know the old tenant painted because they told me - I haven't seen what they painted yet.
  • I did not have a period of nonpayment since the person they let move in paid this month.

Regarding the new residents, they are a very young couple with an infant.  

  • I told them if they passed the typical screening process, then we could proceed with signing a lease.
  • They tried to fill out a Cozy application but it didn't go through - they think because they have no credit.  (I asked them to fill out only the background check portion instead - waiting on it to be returned).
  • They indicated they are okay with with security deposit and rent I specified, and with the terms of a 1 year lease. 

Besides the background check and last 2 pay stubs, what other items do you recommend I request?  

If anyone has any suggested forms, I would be really grateful, too - I was planning on handling this as it came up, but having a tenant unexpectedly move out and swap with someone was a big surprise.

In the future, I probably wouldn't consider a tenant with no credit.  But they're already living there and we're in the midst of a pandemic, so I'd like to make it work, rather than forcing them to move out, as long as nothing else that's a total dealbreaker comes up.

Any tips and suggestions are appreciated.  Thanks so much!

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
6y

Boy a sticky situation.

First, I would not refund anything at the moment.  Theoretically you have 30 days to refund any deposit from the day their lease ends or the time they notify you they have left.   Stall until the very last minute with that cash.

Next, you should consult an eviction attorney ASAP and explain the situation.  If you deposited the check from the unofficial tenants, you have probably bestowed tenancy rights upon them and that may have released your prior tenant from some obligations.  Seek professional advice.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    6y

    Boy a sticky situation.

    First, I would not refund anything at the moment.  Theoretically you have 30 days to refund any deposit from the day their lease ends or the time they notify you they have left.   Stall until the very last minute with that cash.

    Next, you should consult an eviction attorney ASAP and explain the situation.  If you deposited the check from the unofficial tenants, you have probably bestowed tenancy rights upon them and that may have released your prior tenant from some obligations.  Seek professional advice.

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  • Frank Hinck
    Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
    6y

    @Raquel Doheny

    Try to work through it in a week, see if the new person is a tenant you want to keep If not then Call Hellmuth & Johnson and get a professional opinion.

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  • LeAnn RileyBusiness Member
    Real Estate Broker · Minneapolis, MN · Member since 2015 · 116 posts · 67 votes
    6y

    I understand you bought the building with the tenant in place, and it's a 60 day notice. They gave NO notice and someone not listed on the lease is in the unit. Is there a clause about subletting? If not, then the one who moved broke the terms of the lease. Here in MN we have the MMHA. MN Multi Housing Assn. They can likely help you. Also Landlord Resource Network is for landlords who need help with eviction, etc,  Lawyers on staff.\

    Security Deposits are due within 21 days of lease ending....the question is...when did it end? You may need to write a letter within the 21 days to the tenant to protect yourself. 

    You can figure this out....just ask for help, that's when these issues get solved. 

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    I agree with others that said do not return anything to the old tenant as they moved out without notice AND violated the lease by allowing someone else to sublet it.  You are correct to make sure the new tenant passes your requirements.

    Should the new tenant pass, do an inspection and charge the old one for any damages-they are still on the lease, so responsible.  Also make the new one sign that anything you missed, they are responsible for as you can't do a proper inspection when it is occupied.

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