All Forum Posts by: Kate K.

@Rox Whit, thank you for your advice! That's why I posted our situation and asking more experienced Landlords for suggestions. That's exactly what I believe is the right thing to do - to stand our grounds, stick to the lease contract, while working with them to allowing to move out while finding new tenants and minimizing our possible upcoming damages. It is a business, not a charity. And to let them to walk out on us at any time when they just decided to buy a house but don't want to pay for their decision, and force us to absorb all the loses and mitigate the damages on own that they are about to cause to us, WOULD be a charity. So thank you for confirming that I'm on the right track. Plus, to make sure this IS the right way to go, I DID read local laws to make sure what I'm allowed to do and what I'm not, as a Landlord. Plus, I'll be reaching out to a RE attorney as well.

@Charles Large! Thank you! What a cheerful and detailed comment! They actually may or may not qualify for mortgage. But they make great money (both!), and in their twenties they are making more money than most people tat are older than them do! Despite the pandemic and massive losses that millions of Americans experiencing right now.

I am intended to put in writing that from now on I'll accept their checks sent only via mail and will remind them of the late fees should they be late with their rent.

Thank you for your cheerful advice🙏👍😊!

@Drew Sygit, I can't agree more with you! That's exactly what is happening - they all of a sudden decided to buy s house but for whatever reason they making it to be my problem. I will, of course, refer them to the lease and word it most professionally, like Patricia was advising. But in my opinion it's very simple - if they do want to move because they decided to buy a house, their best option is to honor the lease and time thr closing date close to the lease expiration. If it's not feasible for them to do both (pay for rent and to take on a mortgage) as they said, then they cannot afford to buy a house yet, there is an answer to their question, therefore they have to wait, until their lease expire. If they do want to break the lease early, then they should come up with money to pay break lease penalty, since it was their decision to buy a house, not mine. But in all honesty, they themselves don't even know what it is that they want. I will put it in writing, what Patricia suggested, and will get ready to re-list the property as soon as I'll receive a written 60 days notice from them about their intentions to move out.

Thank you for your opinion! You seeing everything exactly as it is. And thanks to all of you, I see our mistakes clearly that we've made, and we will not be making them in the future with our next tenants.

Hi, Leah V.! Your comment put a warm smile on my face😇. And yes, you are absolutely right! It is unreasonable of a customer/tenant to expect that Landlord will wave fees all the time, let them disregard the lease contract whenever they please, and won't charge them for damages that they've caused. You know, I also have retail background selling luxury goods, and superior customer service was huge part of my job, where I've learned how to serve people, learn my customers' wants and needs and help them find whatever it is that they are looking for, even if it is "unicorn" (figure speech)😅. I always went above and beyond for my customers! But there are limits to what we can do as Landlords. This invaluable learning experience will allow us an opportunity for improvement in the future as Landlords. And I sure will update you all on the status of our property and how it all turned out with these tenants. We've by the way, successfully refinanced this property as our monthly payments jumped up by $300 because of tax increase, and at the same time, I was successfully able to appeal our taxes and lower our taxes, having it to be doing for the 1st time! Attorneys by the way did not want to deal with it as there wasn't much in it for them, and I succeeded! Now it's time to do a smooth transition from our existing tenants to the new ones. Thank you so much for your perspective and for your comment🙏🤗📃🏘💰! Thank you all for your valuable advice!!

@Sandy Sawyer, you are so right! And we've been nothing but understanding and accommodating to them! They are good 15-20 years younger than us, so we treat them wirh extra care and nurturing them more than any Landlord ever would. That's why I am disappointed to be hit with such news.. Yes, most definitely they did not think this through as they didn't even spell out "we want to MOVE OUT", moreover, they don't even knke if they do, when would that be. I, of course, will shoe compassion to their "emergency" if that's the case. But despite global pandemic and massive loses in our country with lost jobs, cut hours, cut wages, lost lives, pur trnants financially thriving and doubg so well that considering to buy a house of their own. So they are not at all in a difficult situation, and they are doing great, from their own words. I just think it would be awfully unfair of them to just suddenly walk out on us and legally binding contract, leaving us behind with mitigating damages caused by them.

@Mary M., we have laminate throughout except kitchen where we have tile. During inspection of the premises i should be able to detect the smell of cat's urine on the floor. This is considered damage and replacement will be necessary. Once again, I'll first see if it even happened, and if it didn't - great, if it did happen, I'll confirm the details with an attorney how can I recoup for the damages and subtract from their security deposit according to applicable laws that I already researched.

@Terry Matthews, well, that's something to consider.. Sure I'll learn from my (and my husband's) mistakes, being "kind and accommodating". Many of you pointed that out and are very right! I wo t do this in the future, as we would be thr only ones hurting if we repeat our mistakes. We decided that property management will be on me until we will see what will work better for us in the future. Thank you for your perspective :)

Jon, Jon, that's exactly what I'm considering. First, I asked BiggerPockets fellow Landlords community for suggestions, then I've been researching local and State laws and regulations. Turns out that Landlords in the State of IL are NOT the only ones who are responsible fot honoring the lease agreement, according to Illinois Attorney General and other sources. In fact, other sources suggest that there are ONLY certain categories (at least in the State of Illinois) who have legal reasons to break the lease and are exempt from liability to follow through with their commitment as far as honoring the lease and NOT incur any penalties at the same time:

1) active members of the military, who must change their station;

2) the lease itself being illegal contact (ours was prepared by a Real Estate Attorney, so we are actually in great shape as far as that goes, and we own our property, therefore, have full legal right to rent it out, and full reconstruction was performed up to all existing codes, with all required permits - these are conditions our mentioned above tenants moved in - to EVERYTHING BRAND NEW! and now want to leave..).

3) if a tenant was a victim of domestic violence within the past 3 - 6 months.

4) if Landlord has not maintained the premises in a fit habitable manner (we are so far from that, so much we've spent time or attending their concerns, improving the property and repairing and replacing whatever broke, still wondering if it was a result of tenant's neglect.

5) if Landlord has breached the rental contract

Since none of these scenarios apply to us and our tenants, they do not have sufficient reason to break the lease and not incur penalties, but to leave us with damages to mitigate.

https://www.moving.com/tips/4-potential-consequences-of-breaking-a-lease

Illinois State Bar Association states that written leases prohibit the tenant from subletting the premises, and such prohibition IS enforceable by the law.

It also states that the security deposit is money deemed as a security for any damages to the premises or non-payment of rent, and is to be returned to a tenant if no damage has been done beyond normal wear and tear.

Illinois Attorney General also states the security deposit is to be returned within 45 days after move out date, if: building/complex consists of 5 or more units, tenant does not owe any back rent, and cleaned the premises themselves before they moved.

Hope this information will help other Landlords in our area should run in to a similar situation as we did.

At the end of the day, I have faith in our tenants still, and realistically, despite negative predictions, it will take months before the closing will take place on a purchase of their own house. And before we know it, it will make no sense for them to break the lease when it will be close to their lease end. But I'll be prepared to advertise our property to re-rent as soon as I receive a written 60 days notice from them.

Thank you for your advice! We really appreciate it :)

@Ben Chapman, you just made it on time. It must have been frightening, after treating your tenant nicely, doing your tenant a favor, their sublet "repaid you a favor" failing you this bad!! Thank God you were able to sell the property before anything terrible in the mail came in🙏📄.

@Shiva Bhaskar, thank you for that. I'm working on it right now - reasearching and will be contacting an attorney.