tenant breaking lease!
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tenant breaking lease! (by Sam [CA]) Nov 30, 2023 4:35 PM
       tenant breaking lease! (by Jim in O C [CA]) Nov 30, 2023 4:44 PM
       tenant breaking lease! (by Moshe [CA]) Nov 30, 2023 7:09 PM
       tenant breaking lease! (by Moshe [CA]) Nov 30, 2023 7:16 PM
       tenant breaking lease! (by Sam [CA]) Nov 30, 2023 8:13 PM
       tenant breaking lease! (by Sam [CA]) Nov 30, 2023 8:24 PM
       tenant breaking lease! (by Ken [NY]) Nov 30, 2023 9:43 PM
       tenant breaking lease! (by WMH [NC]) Nov 30, 2023 10:12 PM
       tenant breaking lease! (by Oregon Woodsmoke [ID]) Dec 1, 2023 11:30 AM
       tenant breaking lease! (by Ray-N-Pa [PA]) Dec 1, 2023 11:59 AM
       tenant breaking lease! (by Mike45 [NV]) Dec 1, 2023 4:30 PM

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tenant breaking lease! (by Sam [CA]) Posted on: Nov 30, 2023 4:35 PM
Message:

For the first time in nearly 20 years, I have a tenant breaking their lease early to move in w/partner- not a covered Early Termination Right in CA.

Property is in Los Angeles and under Rent Control with no subletting and does not have a Early termination clause.

I have made the tenant aware by text they are responsible to uphold their lease until end until May 2024 and have done my best to rerent the unit but being winter (even in Los Angeles) there is less interest.

I've listed the unit with higher rent ($100 increase but still below market rate) with same renter criteria. I don't see a requirement to list at the same/current tenant rate.

If the tenant moves out before I can find a replacement tenant-

1) Do I still perform a move out walk thru?

2) Normally, security deposit is returned within 21 days after move out- do I keep the security deposit if there is no paid rent?

3) If tenant does not pay remaining months- is the remedy small claims court?

4) Do I file after I find a new tenant?

--23.240.xx.xx




tenant breaking lease! (by Jim in O C [CA]) Posted on: Nov 30, 2023 4:44 PM
Message:

I would say you still need to do the walk-through inspection prior to move out but as far as increase of rent of $100 I donít doubt think that will work. --174.243.xxx.xx




tenant breaking lease! (by Moshe [CA]) Posted on: Nov 30, 2023 7:09 PM
Message:

"1) Do I still perform a move out walk thru? "

Remember that you must notify departing tenant about his right to a preliminary inspection, and his right to be present. Then, if he doesn't request the inspection, you are not legally obligated to do one, but in your own interests, I would do it anyway and invite the tenant to be present.

"2) Normally, security deposit is returned within 21 days after move out- do I keep the security deposit if there is no paid rent? "

You must ACCOUNT for the security deposit within 21 days, returning the deposit minus allowable offsets. Unpaid rent would be allowable offset. There is no concept like "keeping" security deposit.

"3) If tenant does not pay remaining months- is the remedy small claims court? "

Court is one remedy. There are others. You cannot use Small Claims Court unless the sum you are asking for is less than or equal to $10,000. If the sum is greater than $10,000 you will be giving up your claim to any amount over that.

--47.139.xx.xxx




tenant breaking lease! (by Moshe [CA]) Posted on: Nov 30, 2023 7:16 PM
Message:

P.S.,

By asking for $100 more rent, you are encouraging him to claim that the $100 higher rent discourages replacement tenants. You are not supposed to use the contract obligation to enrich yourself.

--47.139.xx.xxx




tenant breaking lease! (by Sam [CA]) Posted on: Nov 30, 2023 8:13 PM
Message:

"1) Do I still perform a move out walk thru? "

Remember that you must notify departing tenant about his right to a preliminary inspection, and his right to be present. Then, if he doesn't request the inspection, you are not legally obligated to do one, but in your own interests, I would do it anyway and invite the tenant to be present.

I'm not sure when his final move out date will be since they have already found/rented a new place and are doing a "slow" move. His plan to be out by 12/31/23 but since he is still responsible for rent- they may move out slower if no its still vacant.

"2) Normally, security deposit is returned within 21 days after move out- do I keep the security deposit if there is no paid rent? "

You must ACCOUNT for the security deposit within 21 days, returning the deposit minus allowable offsets. Unpaid rent would be allowable offset. There is no concept like "keeping" security deposit.

Ok, understood. If tenant moves out and stops paying rent, I can use security deposit for unpaid rent and send him documentation.

"3) If tenant does not pay remaining months- is the remedy small claims court? "

Court is one remedy. There are others. You cannot use Small Claims Court unless the sum you are asking for is less than or equal to $10,000. If the sum is greater than $10,000 you will be giving up your claim to any amount over that.

Rent is about 1500 so it will end up being less than 10k.

Can you share what the other remedies are?

Thank you! --23.240.xx.xx




tenant breaking lease! (by Sam [CA]) Posted on: Nov 30, 2023 8:24 PM
Message:

P.S.,

By asking for $100 more rent, you are encouraging him to claim that the $100 higher rent discourages replacement tenants. You are not supposed to use the contract obligation to enrich yourself.

To clarify, the lease agreement terminates 5/31/2024. I have to sign a new year lease with a new tenant for the same lower rental amount? And each lease renewal would be limited based on current tenants lower rate?

If current tenant wanted to move out at end of lease term, I can increase without issue.

--23.240.xx.xx




tenant breaking lease! (by Ken [NY]) Posted on: Nov 30, 2023 9:43 PM
Message:

Sam, charge the $100 more,he is moving and creating the problem --74.77.xx.xx




tenant breaking lease! (by WMH [NC]) Posted on: Nov 30, 2023 10:12 PM
Message:

At least in my state we are not required to re-rent the place at the same rent the departing tenant was paying - we can ask for market rent.

I don't know about yours. --173.18.xx.xxx




tenant breaking lease! (by Oregon Woodsmoke [ID]) Posted on: Dec 1, 2023 11:30 AM
Message:

It's under rent control. Are you allowed to raise the rent to full market between tenants?

She is leaving voluntarily. I suggest that you let her go, do the standard security deposit inspection and refund. Then wave good-bye, be rid of her, and put the unit back on the market at full market rate.

Remember whatever you rent it for with the next tenant, you are stuck with that amount, so get as much as your can while it is legal to do so. Let her go and she will no longer have any interest in what rent you are charging. --76.178.xxx.xxx




tenant breaking lease! (by Ray-N-Pa [PA]) Posted on: Dec 1, 2023 11:59 AM
Message:

I am thinking out loud-

I agree with Moshe assessment about the rent increase.

Perhaps you can advertise your unit with a starting rental rate the same that you have. If the that rate is say, $2,500 then market it:

"3 Bed 2 Bath house Rent starting at $2,500. One year lease."

What do I mean by rent starting at? Well if they want that garage that would be extra. They don't have renters insurance, that is extra, they want landscaping - its extra, They want a longer lease- that is a little extra. They want appliances - that is extra. They want NEW appliances - even more.

Give them the fries that they want. If they want to use an ACH system, that is extra. Let the customer be right - as long as they are paying extra for the items that they want. Now can the tenant argue with you that this isn't an exact apples for apples exchange or marketing - let them know that the paint was FRESH when they moved in, that floor was new and it was peak season when they moved in and now its not peak moving season.

You need to treat you tenant fairly. I would offer them a move out bonus of an extra $100 if they wouldn't mind showing a prescreening person the place if that person moves in. If they provide that referral themselves double that. An extra $200 goes a long way for some folks. You want to minimize your empty time.

If you are paying that tenant an extra $100 if the person they show the place to moves in, what do you suppose the answers will be when that lead ask - how is the Landlord? What issues have you had?

You are asking the tenant to lie. You are simply reimbursing them for their effort. If they want to shoot themselves in the foot they are allowed to do that freely. The more you can have that tenant integrated into your team, you both win. --24.101.xxx.xxx




tenant breaking lease! (by Mike45 [NV]) Posted on: Dec 1, 2023 4:30 PM
Message:

You are not required to re-rent the place at the current rent, or even at all. You can keep the unit off the market completely. The idea of seeking new tenants is one of "mitigation of damages." If you fail to mitigate your damages, and if you sue the breaching tenant for damages, the tenant can claim as a partial affirmative defense "Sam failed to mitigate damages." The Court can decrease the amount awarded to you as damages by any amount that you could have reduced your damages.

By asking for any different terms, including a $100 rent increase, you are muddying the waters. If you are able to get a new tenant in, wonderful, but if you can't get a new tenant in at the higher rent, maybe the difficulty in getting a new tenant is your fault in asking for too much rent! You will be second-guessed by a judge who probably has never rented out property and who doesn't really understand the realities of being a landlord!

I'd keep the rent at the present level, even if you have to eat the $100 rent increase for a few months.

--71.222.xx.xx



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