Laure,
Thanks for the compliment.
The good news is that I learned this HARD lesson right in the beginning of my REI carreer. (and it did not cost TOO much!)
Sadly, I do still have a tendency to be soft with some tenants.
Example:
I have one tenant that pays EVERY SINGLE month late, and always at least by a week.
I was about ready to NOT accept there rent any more and evict them.
Then, we had a talk , and I basically told them that they will NOT be able to exercise the option to buy with this payment history, and that the LATE FEES would NOT be waved. I also told them that I was being a “nice guy” and allowing them to stay and would consider the option still good IF they started to pay ontime. (They have not!)
Now I look at the deal this way;
Let them pay late EVERY month, since they do pay the rent, PLUS the late fee!
And, since they will in all likelyhood NOT be able to exercise the option, my profit goes up there as well.
I can do this all over again with a new T/B’er this summer.
or
This late payor can come up with some serious CASH to extend, and I may think about giving them a second chance.
That late fee cash flow is something I am getting rather used to. Õ¿Õ
Especially since I charge 10% of the rent amount, PLUS $5/day for a late fee. (think about that when the rent is $1k and they pay on the 10th or later each month!)
And, my payments are not due on the seller financed note until the 20th.
Renters vacated prior to end of month… - Posted by Steve Heller
Posted by Steve Heller on April 17, 2000 at 06:42:17:
My renters vacated a rental prior to end of month. Now they insist that if I rent it before the end of the month that they are the ones entitled to all the money. They bought a new house after their lease expired and moved in the middle of the month. Any thoughts?
Steve
One way to avoid any problem over this would be to offer the rest of this month FREE to a new tenant and add the prorated amount to the lease as a cleaning deposit! This way you haven’t collected any rents for that month and therefore you can’t be liable for collecting double rents. Make the cleaning deposit non-refundable. The prevoius tenants would not be entiled to any deposits you collect, only actual rent up to the amount they were paying.
Re: Renters vacated prior to end of month… - Posted by Hugh James
Posted by Hugh James on April 17, 2000 at 16:45:05:
The way I read it, their lease expired. They stayed on on a MTM tenancy. They didn’t give you 30 days notice. They did pay the rent, and left before the EOM. If this be the case, I’d say they are entitled to posession until the EOM. Since they, apparently, didn’t give notice, you are entitled to retain their security deposit. You did have a deposit, right?
Your renters are responsible for the payment of the rent for the entire month, however, you are not entitled to enrich yourselves by double renting out the property. They still have full rights of possession until the end of the month. If you choose to rent it out before the month is up, you can do so only with their consent. Apparently, they are only consenting if they get the money.
Here’s what I would do. Tell them that they are still responsible for the property until the end of the month, including keeping utilities on in their name. But, that if they want you to, you will try to rent it out sooner. Have them agree that any rent that you collect for the remaining portion of the month will be turned over to them, elss any expenses you incur in renrenting the property. This would include advertising costs, showing fees (for your time), any utility costs (if they have already turned utilities off), etc.
You are still better off to rent it out before the end of the month - no vacancy, plus they cover your costs of rerenting. You would also be able to offset any damages not covered by their deposit, before refunding them the difference.
Steve,
You say your renters insist they are entitled to all the money?
WHAT?!?!
Who owns this place, you or them?
If a renter called me and insisted anything of the sort, my response would be fast and simple…CLICK!!
Also, your lease should cover this.
How long was the lease for?
Were they “almost” to the end of it?
Was this the middle of the term?
Did they give you any notice at all?
If this was mine, my lease would cover it, stating that they have to give me notice, just as I do them, and also that if they violate the lease, in anyway (includes vacating the home prior to the lease term expiration), then the security deposit is lost and I CAN hold them responsible for the lease payments due for the entire term.
So, ignore the tenants, tell them to pound sand, and put someone else in there FAST!
Re: Renters vacated prior to end of month… - Posted by Dee-Texas
Posted by Dee-Texas on April 17, 2000 at 07:18:29:
What does your lease say? Mine says that they have to give me 30 days notice of vacating premises or notice of wanting to sign a new lease. If they don’t do this, no money, because it really leaves you without enough time to clean and rent. If the rental is in really good shape I will usually give them some of the deposit back, just to be fair. I’ve only given security deposit back once in many years. Usually I have to fix something. That’s why I only L/O now,
always learning,
Dee-Texs
I agree completely ! Let them sue you for their partial rent ! They will have to prove that you received money in a court of law. They will have to pay money to file to sue you.
Tell them plainly, this is not your policy. PERIOD. I wouldn’t recommend telling them to stick it in their ear, or other opening in their body, although I would be tempted ! LOL
I have a brand new Tenant who just moved into a rental home of mine. I just spent over 12k rehabbing the kitchen and bath and much much more. The house is gorgeous ! Before one week was up, they sent me a two page letter telling me everything that was wrong with the house. I responded in writing, and told them to call me to discuss ending their lease, that apparently the house wasn’t right for them. I haven’t heard a peep in two weeks. Still waiting…
