My new tenant never moved in! What do I do now?

If there is one lesson I have learned from working with people, it is that people change their minds. I went through my standard application process, the applicant paid the application fees, viewed the property, even has several friends that already lease apartments in the same complex. I was feeling very comfortable with the prospect of a new, solid, tenant for my one vacant unit and that they would be content to stay for a long time. Then.... After signing the lease and going over the post screening checklist, my new tenant did not complete any of the move-in requirements.

So here I am with a signed lease, giving them rights and control of the property, but no rents, no deposit, utilities were not changed over, and renters insurance was not provided. I have called several times with no return calls. I have sent text messages that were not responded to. I have even sent emails that have been ignored by this previously prompt responder. Before we signed the lease my tenant was excited, motivated, and completed the screening process with no problems.

My first move was to contact my attorney for advice on how I can break this new contract when the other party has not completed any of there side of the agreement. As it turns out, I do need to follow direct steps to notify the tenant that we are cancelling the agreement based on their failure to perform.

1. Send a Letter - First I typed a letter explaining that due to their failure to complete the post screening checklist, we have decided to terminate the lease. This letter was sent to their last known address, from the applications I had received. You can send it certified mail, but keeping a copy of it for my file is the most important part.
2. Post a Notice - I can also post a 3 day notice to pay or quit on the property, or post a 15 day notice of abandonment. But since they did not have any possessions in the property, or ever moved in this was more for keeping myself completely covered in the event that they show up later claiming that I did not try to notify them.
3. Keep a log - I also decided to keep copies of my emails, and make a hand-written log of my text messages and phone call attempts. This will show that I showed good faith in getting a hold of him prior to cancelling the lease.
4. Bank Statements - Keep your records to show that rent and deposits were not made. Really just a copy of your bank statement.
5. Advertise your property! - Remember to never take down your rental advertising until the property is filled, rent is deposited, and your tenants are moved in. I am sure that this could cost you precious time and rental income. The primary goal of property management is to keep the asset producing. As soon as I had made the decision to terminate the lease, and move on to a new application I began to show the property to new applicants.

Landlording is an interesting hobby that can easily get out of hand if you let it. Keeping excellent and organized records will be your best defense if and when you need to show a judge that you have done your part.

Discliamer: MJA Real Estate does not provide legal advice. You should always contact your attorney for matters that involve contracts and proper documentation.