Hi Landlords,

I have a single-family rental property that has been occupied by the same tenants for over two years. They have consistently paid rent, although often late. Recently, I had a new dishwasher installed through Costco using a third-party installer. About 20 days after installation, we found out the connector on the pipe leaked. Both Costco and the installer denied responsibility, so I proceeded with my own insurance to handle water mitigation. The subfloor of the kitchen area is dry now. They reconstration can start in about 2 weeks. It will take one or two week to finish the hardwood floor installation of about 1000 SF.

During the mitigation process, there was about a one-week disruption to the kitchen due to drying equipment and the removal of the dishwasher. There was no mold issue. The kitchen remained usable, though it was inconvenient due to the presence of three drying fans and a dehumidifier.

The tenants have now asked to move out without penalty, despite having just extended their lease for another two years. Per the lease agreement, there is a $3,000 early termination fee.

They informed me that they were going to look for a new place. I was fine with that.

Now they told me that they are targeting a move-out in the April 25 – May 1 timeframe, pending final approval.

The tenant also draft a move-out agreement:

Here’s what they think would be a fair and workable approach:

• Lease termination without penalty, with timing aligned to when our new place is secured

• No additional rent due beyond April, if we are able to vacate prior to May 1

• If we are unable to secure a new rental prior to May 1, the option to remain on a short-term basis through no later than May 15, at a mutually agreed reduced or prorated occupancy amount reflecting the ongoing disruption

• Professional packing assistance for the first floor, or equivalent support

• A one-time credit in the range of $1,500–$2,500 to help offset the extended disruption and transition costs

To help us secure a new place quickly, it would also be very helpful to have:

• An initial $500–$1,000 portion of that credit provided now (Zelle or PayPal is fine) to cover immediate expenses like applications and meals

• Partial early release of our security deposit, or applying it toward the final balance, to assist with upfront costs.

I’ve tried to be very responsible with maintenance and repairs, and I’ve also been flexible with late rent payments in the past.

Given the current situation, I’d really value your experience and perspective on how to handle this in a way that is fair to the tenant while also protecting my position.

Thanks in advance for your time.

AVA

does your lease agreement address this type of problem? If not, you need to add language to the agreement.

Inconvenience is not the same thing as inhabitable.

Thank you, Jason for the comment. I agree.

Richard, I'll need to update the lease for this type of problem.

Ray-N-Pa: They have renters insurance. The insurance only cover if the house is not reasonably livable, and subject to limits. The house is livable. They told me they want to move out because they want to be closer to the new work location. They know that the contruction will be started in about 2 weeks. And it may need to one or two weeks to finish. The contractor told me that the tenants could still live in the house even during the new floor instatllation. The tenant want to get money. They mostly likely will move out in one or two weeks.

Thank you, Jason for the comment. I agree.

Richard, I'll need to update the lease for this type of problem.

Ray-N-Pa: They have renters insurance. The insurance only cover if the house is not reasonably livable, and subject to limits. The house is livable. They told me they want to move out because they want to be closer to the new work location. They know that the contruction will be started in about 2 weeks. And it may need to one or two weeks to finish. The contractor told me that the tenants could still live in the house even during the new floor instatllation. The tenant want to get money. They mostly likely will move out in one or two weeks.

They sound like they are on the road to being professional tenants and have been reading about their "rights" a bit too much. Unless this is A class, I'd remove and sell the dishwasher. The fact that they often paid rent late (you DID collect the late fee, yes?) shows they are C class or below tenants.

sounds likes it is a good thing these tenants are leaving. I would not be giving them money for their "inconvenience" of having work done in the house. They are lucky you maintain and fix the house and keep everything in good working order. This in not something that is your fault. It is a random act of misfortune which you are quickly dealing with.

"they want to move out because they want to be closer to the new work location". That isn't your problem. They signed a lease for 2 years.

They have been late with payments. I'd enforce the early lease termination fee. If you want to be nice, make it 1 month's rent for your "inconvenience" since you are the one who is going to have to find another tenant. And find one that is compliant and pays on time, not a high demand prima donna.

• Lease termination without penalty, with timing aligned to when our new place is secured.

No, see above.

• No additional rent due beyond April, if we are able to vacate prior to May 1

Follow your lease, 30 day notice, early lease termination fee, etc. no special treatment

• If we are unable to secure a new rental prior to May 1, the option to remain on a short-term basis through no later than May 15, at a mutually agreed reduced or prorated occupancy amount reflecting the ongoing disruption.

30 day notice, last month rent is not pro-rated etc etc

• Professional packing assistance for the first floor, or equivalent support.

Not your problem. He77 no.

• A one-time credit in the range of $1,500–$2,500 to help offset the extended disruption and transition costs

Not your problem. He77 no.

To help us secure a new place quickly, it would also be very helpful to have:

NOT YOUR PROBLEM. They are the ones who want to move closer to work.

• An initial $500–$1,000 portion of that credit provided now (Zelle or PayPal is fine) to cover immediate expenses like applications and meals

Absolute not.

• Partial early release of our security deposit, or applying it toward the final balance, to assist with upfront costs.

Absolutely not. Security deposit is for damages. Your security deposit will be returned with in 30 days (or whatever VA law is) etc etc.

They are absolutely trying to use you as a door mat.

The tenant is not in charge. The landlord is in charge.

Blame fair housing. Fair housing laws require me to follow my lease and treat everyone the same and I can not (pick whatever you want here) waive the early lease termination fee, I can not use the security deposit for anything other than damages, I can not provide moving expenses ... . . . .

What does your lease say? Add verbiage to make things clear and for goodness sakes follow the lease.

If they are late, charge them a late fee. It's called wallet training. Remind them rent is due on the 1st. Text, email, send a USPS letter. IF they continue to be late, end the lease at the end of the 1 year term. Why are you doing a 2 year lease anyway?

Are there consequences for holding over? $100 a day

How do you handle a early lease termination? Explain it in the lease.

What is the earliest you can charge a late fee in VA?

What is the maximum penalty you can charge in VA?

1. Termination and Renewal:

a. Termination at End of Initial Term: Either Landlord or Tenant may terminate the tenancy at the expiration of the initial term by giving WRITTEN notice to the other at least 30 days prior to the Ending Date of Lease. If Tenant holds over beyond that date and time without landlord's permission, there is a $100 per day holdover charge until possession is returned. This is to encourage timely move-out and return of possession at end of lease.

b. Renewal: In the event such written notice is not given or if the Tenant remains in possession of all or any part of the Premises but without a new Lease being executed, Tenant shall become a lessee from month-to-month subject to all of the applicable covenants, terms and conditions of this lease, but the total monthly rental payments shall increase by 10%.

c. Termination Example: If you wanted August to be your final month you must give notice anytime in July that August will be your final month and you plan to be out of the home by the last day of that month by noon. Last month’s rent is not prorated and must be paid in full. If you return the keys / move out any later than the last day of the month, the next full month’s rent is due or there is a $100 per day holdover charge until possession is returned.

d. Early Lease Termination Fee: Should tenant desire to move-out prior to the end of the rental term, Tenant shall pay a one-time fee equivalent to 1.5 times the total month’s rent to end the lease early and be released from any further rent obligation. However, tenant must still a) give 30-day advance notice, b) pay rent up thru month of departure, c) pay any unpaid fees or obligations, d) return property in pre-move-in condition (any damages will be charged).

Bonanza, thank you for your questions and comments.

My lease for termination:

Cancellation and Renewal of Lease: Either party may terminate this Lease effective as of the end of the then-existing Term by giving the other party written notice at least days before the end of the then-existing Term. If no such notice of termination is given, the Term of this Lease shall be extended for self-renewing terms of . If Landlord intends to change the terms or conditions of this Lease, including increasing the Rent, for any renewal term thereafter, Landlord will give Tenant written notice of the new terms and conditions (the “Renewal Notice”) at least

days prior to the end of the then applicable term. Should Tenant fail to provide Landlord written notice at least days prior to the expiration of any Lease Term of Tenant’s intentions to remain in the Dwelling Unit, or vacate, Tenant shall be deemed to have agreed to the renewal Lease term offered in the Renewal Notice, and all terms contained in

the then-applicable form of Landlord’s Lease (a copy of which shall be provided to Tenant(s) upon request, and at the time of Lease signing), and shall be bound by these terms, until such time as the Lease is terminated in accordance with this Section.

Late Fee: 10% of Total Monthly Rent or 10% of the remaining balance due and owed by Tenant whichever is less.

other provations:

6) Rent is prorated at move in but not at move out. Rent is for calendar months only.

7) Early Release Fee $ 3,000.00. Tenant(s) may pay this one time fee to end the lease early and not be liable for the remaining months of rent. A 60 day notice is required. The notice begins on the day that the fee is received.

HOLDOVER TENANT. If Tenant remains in possession of the Dwelling Unit after the required departure date following

the termination of this Lease, Tenant will be liable for the following damages sustained by Landlord, or Agent: (i) actual damages which include but not are limited to, holdover rent equal to the Per Diem Rent set forth in section 1(h) multiplied by the number of days Tenant stays in possession of the Dwelling Unit after the vacating date, and storage, hotel, meals, mileage, etc., payable by Landlord to the new tenant or (ii) liquidated damages equal to one-hundred and fifty percent (150%) (or one-hundred percent (100%) for any HUD property) of the Per Diem Rent, multiplied by the number of days Tenant stays in possession of the Dwelling Unit after the vacating date; and (iii) reasonable attorney’s fees and court costs. In addition, if Tenant remains in the Dwelling Unit after termination or expiration of the Lease and no new Lease is entered into, the terms of the Lease shall remain in effect, except that the amount of rent shall be either as provided in the terminated Lease, or as provided by Landlord in a written notice to Tenant. Such new Rent amount shall take effect on the next Rent due date following 30 days after the notice. Nothing herein shall be deemed to create a right on the part of Tenant to holdover after the required departure date.

You have a good lease, why aren't you enforcing it?

I'd love to get 10% late fee. NC limits me to 5%. The last month is not prorated. Good. They need to give you 60 day notice in writing. If you want to be "generous" tell them you will accept a 30 day notice, last month's rent is not pro-rated, ELT fee is $2500 and say fair housing laws do not allow me to do any of the other baloney your are trying to pull.

Late Fee: 10% of Total Monthly Rent or 10% of the remaining balance due and owed by Tenant whichever is less.

other provations:

6) Rent is prorated at move in but not at move out. Rent is for calendar months only.

7) Early Release Fee $ 3,000.00. Tenant(s) may pay this one time fee to end the lease early and not be liable for the remaining months of rent. A 60 day notice is required. The notice begins on the day that the fee is received.

You don't need a lawyer until they do something you can't handle. Right now it is just a conversation you are having with the tenants. Don't explain things. Just be matter of fact. The lease states this XYZ. Or the lease states this XYZ, I am willing to allow ABC.

Do not argue. Just tell them how it's going to be. You are the landlord. This isn't a negotiation.

Keep everything in writing / email. Do not have a conversation on the phone if you can help it because you don't seem to have the conviction of your lease in your head.

Send them detailed move out instructions on how you expect the unit returned. Tell them "nothing would make me happier than to return your whole security deposit in accordance with Virginia state law. Here's how that happens . . . ."

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Sounds like the tenants want everything the opposite of what your lease says. Stick to your lease. In fact, with their attitude, it would make me want to stick to it that much more.

This has nothing to do with the water damage. They want to move closer to work. How exactly is that your problem??

You've already been generous in allowing them to move out without penalty. Except that they're taking advantage of you. They haven't been accepted anywhere and they expect you let them choose when and how they will leave.

I tell my tenants: I need thirty days notice so that I can prepare, just like you would need thirty days to move out. Please let me know when you have an exact move-out date and we can start counting from then.

The only reason I would let them out of their lease early without penalty would be if I really wanted to get rid of them. The other requests? No, no, no. And I'd be more than a little ticked off that they even asked.

Wow, they are wanting you to fund their move.

Working with a tenant on late rents should not become the norm. I only get to charge 10% late fees. But I charge it for the entire rent. Otherwise they can keep paying less than rents for a cheaper rate. No thanks. I am not in the business of collecting late fees. That is supposed to deter them. At only 10% some will just eat the fees so they can keep paying late forever.

It would be very tempting to just file on them. Not sure how the new 2 year lease will effect that tho. Going forward I would not bow to any of their half-baked demands. They don't give proper notice, ding them. They pay late, ding them. Better yet start eviction proceedings as soon as your state law will allow.

Do not buckle under their demands. Follow your established rules. Collect the money that needs to be paid. If they give notice, make sure they follow the dates given. Not your fault that they can't find another place. Wallet train them while you are preparing to get rid of them.

Your tenants clearly think they're in the drivers seat. How did that happen? I suspect you may be one of those "friendly" landlords as opposed to 'business-like'.

I would reject their proposal outright and enforce your lease agreement. Let them know that things break, and there is no place they can inhabit that doesn't have that risk.

You're doing your due diligence to repair it quickly and efficiently. That is what would be expected of you, nothing more. The place is still habitable and poses no health or safety risk.

If they want to move closer to work, let them, but stick with the contract you and they signed.

I would not provide most of what they ask for. Your lease does need strengthened to address a situation where there is disruption/inconvenience to their ability to live there with all the amenities.

1) Improve your lease

2) Some states do require lawyers for court if you are an LLC and it may depend on dollar amount...check with your attorney or the court clerk

3) I would probably (depending on dollar amount of the repairs for the leak) sue both Costco and the installer...one of them has to be liable. At a minimum, a lawyer can draft a "demand letter" that basically says "If you don't try to make this right, we will be going to court". They may offer to pay a portion at least.

4) It's hard to tell from the info you gave how "inconvenient" the issue has been for them. Were they unable to use the kitchen completely? For how long? etc. I don't need actual answers...but certainly if they were completely unable to use the kitchen for 2 weeks then I'd say you owe them some type of offset...but letting them out of the lease without the ELT could be considered that offset.

5) Other than the above, I'd stick to your lease.

Thanks again for the comments and recommendations! I will keep the group updated.

My insurance has collected all the documents and they will ask Costco and the installer for reimbursement. If everything works out, I may get my deduction back. The lesson I learned is to double check the dishwasher leaking after the installation in the future.

I have a dishwasher in one place. It has not worked since before these tenants moved in. I told them I could pull it or they could use it for storage. Custom built cabinets so no buying a matching one.

They use it for storage. Would they like a DW instead of a cabinet? Maybe. But they got what I supplied.

I read all the messages. I don't have much to update yet. I just want to say thank you.

I have the following statement in the lease, but not sure how to improve it in the future:

My lease states that if the place is untenable they can get out of their lease. No way do I want to rent another place for them.

Thanks everyone for the guidance on the water-damage question. I reviewed the situation and responded in writing based on the lease and the facts, and kept communication consistent and documented. The tenant hasn’t pursued the reimbursement request further at this time.

I appreciate the help here—this pushed me to tighten my communication process going forward.