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March 16, 2009

landlord advice

Eventually we as "landlords" will eventually be faced with a similar situation. I have a tenant who is approx. 6 months into a one year lease. in the middle of last month the tenant informs me that he/she can no longer afford the rent and will be leaving in two weeks. The two weeks come and go with no move, when i go up to the apt. tenant states that the new apt he/she will be moving into is not ready and would it be possible to pay half months rent for an additional 2 weeks. a few days later tenant asks me if I cashed the check, stating that there will be insufficiant funds available due to tenant placing a down payment for his/her new apt. Tenant request that I use the security deposit as payment instead. I inform the tenant that the lease states that secutrity deposit will not be used as payment.especially since numerous walls are painted black and brown with holes in the wall due to pictures. due to the current economic picture I can't just absorb this loss. your advice on this matter is greatly appreciated. thanks

Comments

You have a lease. Half months rent? I wish I had a landlord like you when I was a renter.
If they want out of the lease most landlords require the tenant to find a new renter to take their place.
This tenant is taking you for a ride.

Posted by: Adam Dahill at March 16, 2009 9:09 PM

The only "carrot" you have left is for both of you to sign a termination of said lease. This gives you legal possession on the cheap. Offer them a glowing recommendation for their next flop house LL. Make them somebody else's problem. No use trying to squeeze blood from a rock.

Posted by: mod squad at March 16, 2009 9:21 PM

Addendum: offer them a glowing recommendation if they vacate soon.

Posted by: mod squad at March 16, 2009 9:24 PM

you are fucked

Posted by: eman1234 at March 16, 2009 9:37 PM

Do not offer a glowing recommendation. If you are asked to provide a recommendation, or if you are contacted by the new landlord - be honest and tell the entire story. You would want someone to be honest with you about future tenants.

Posted by: parkslopemom at March 16, 2009 9:37 PM

This does not sound good. Did they give you written notice? It sounds like they might be planning to stay indefinitely without paying until you evict them. Waste no time. Consult a lawyer.

Posted by: mopar at March 16, 2009 10:36 PM

if this just two weeks - let it go and wait.
do not get in argument with tenant - she has your property in posession and can make a lot of bad things which cannot be covered by security deposit.

get agreement in writing, that she moves out in 2 weeks.

mopar, why would you call layer right now? wait two weeks at least. otherwise it is wasted money on legal fees.

Posted by: bobjohn at March 16, 2009 11:17 PM


Unfortunately there are lots of people, like your tenant, who don't care at all if they inconvenience their landlords. I personally wouldn't have let the tenant out of the lease until after I found a replacement tenant. It's not a bad idea to put a clause in the next lease you sign that if during the lease term you allow the tenant to terminate the lease early, you as the landlord are entitled to payment of an extra month's rent (maybe even two).
It's a big inconvenience when tenants break leases and we as landlord should be compensated for it.

You certainly did the right thing not allowing the tenant to use his security deposit to try and pay his remaining rent. Tenants who try and pull stuff like that are usually sleaze balls and you absolutely did the right thing telling him "No."

Posted by: IronBalls at March 16, 2009 11:22 PM

Is it a big lose? How much were you charging in rent? Is it so difficult to get the same amount now?

Posted by: hannible at March 17, 2009 6:07 AM

This sounds like a nightmare. Please keep us informed of how it plays out.

Posted by: Arkady at March 17, 2009 8:57 AM

I agree with the above - give the tenant 2 more weeks.

That's why you should always try to get as large as a security deposit as possible, so you can protect yourself in the event something like this happens.

Posted by: jnjnjn2 at March 17, 2009 10:11 AM

Did the tenancy begin only six months ago, or is the current lease a renewal?
What is your history with the tenant prior to this situation? Writing a check on insufficient funds is check fraud. Deposit the tenant’s check and put your own position (including a demand for payment) in writing, delivering it via certified and regular mail. Even before sending your letter, and though unlikely they'll comply, ask the tenant to deliver a written statement of their intent to pay and intent to move, including their new address. Decide how much time, energy and money you want to put into the situation, including bounced check fees, small claims or housing court, and/or whether you'd just be better off helping them pack and
being rid of them.

Posted by: vinca at March 17, 2009 10:49 AM

I never understand why people say
"most landlords require the tenant to find a new renter to take their place."
why would i want an idiot tenant like this to find me another tenant? I agree with Vinca...start getting some things in writing.

Posted by: CGmodern at March 17, 2009 11:29 AM

Talk to a lawyer and have the lawyer communicate with the tenant in writing about their financial obligations. Don't do them any favours or cut them any slack. This is a business relationship; they aren't your friends. They are trying to take advantage of you, and the more tolerant and forgiving you are, the further they will try to push it.

Posted by: geekspice at March 17, 2009 4:11 PM

Did that check they wrote for the subsequent 2 weeks actually bounce or not? I can't tell from your post if they already owe you rent money and, if so, how much. If you're still in decent shape in terms of the security deposit I'd do 2 things:

1) get into the apartment NOW and take a good hard look at it to determine the cost of reasonable repairs.

2) make a new contract to be signed by both parties stating that, because they reneged on the prior lease, the tenant must vacate by whatever date you decide is appropriate. The message should be loud and clear that, to avoid legal action, they need to comply to YOUR terms. I'd give them 2 weeks to be fair (and if it didn't compromise me financially in terms of rent and reasonable repairs). If they're still not out, then you have reason to call a lawyer.

Posted by: herkimermaid at March 17, 2009 5:35 PM

Vinca gives good advice. You should communicate by certified letter and organize yourself for a fight. However, it is in your interest to figure out a solution that both protects you and avoids tenant/landlord court if possible (ugly). Sometimes the best is to just figure out a way to get rid of them -- obviously this is not a good tenant. Although you can never really know for sure, it is best to spend a lot of time up front questioning a person and trying to size up how mature, ethical, and solvent they are before going through this. It is very disruptive and expensive. Also, feel free to show this place to prospective tenants now. I totally agree with GCmodem about their getting a tenant for you. No way. That is your decision -- who you rent to. Did you know this tenant was living so close to the bone? Unfortunately in the times we are living in, stuff happens but try to get the full economic story on the tenant before hand. Good luck.

Posted by: donatella at March 17, 2009 5:39 PM

OP here, Thanks for all the feedback. I presented the tenant with a 3 day "demand for rent" letter. It wasn't certified and tenant didn't answer the door. I placed a copy of the letter under his/her door and taped the original to his/her front door. No other tenants occupy the house but myself and my spouse.I know that I'm probably gonna come out on the losing end. I've always asked for just first months and security deposit however, I'm going to have to start asking for last months rent as well. aside from my tenant, hopefully someone has benefitted from my drama. thanks all

Posted by: bktech at March 17, 2009 6:36 PM

From my point of view, housing court is a last resort. Donatella is right when she said ugly, but that would only describe the tip of an expensive and time-consuming process. If there's any chance you might wind up in housing court, then the manner in which your 3-day demand was delivered is insufficient. See: http://www.nycourts.gov/courts/nyc/housing/startingcase.shtml
http://www.nycourts.gov/courts/nyc/housing/pdfs/Landlordbooklet.pdf

Posted by: vinca at March 17, 2009 8:49 PM

Yes, ugly is the tip of the iceberg. I once had to go this route with a truly difficult person I inherited. It was so traumatic I can't tell you - my lawyer for one was worse than the tenant. The tenant had overstayed her lease - and when I found out what might have happened -- i.e. the judge could have given her 6 months additional time in the apartment, when she would have likely not paid me -- I was pretty horrified. Luckily, she was pretty scared by the whole process (probably not as much as I) and she left after 6 weeks. I had to go to petty claims court to get the money, which she gave me. Always make sure you have information on where the person works, the social security number, even info on assets like car license plate number. You may have to collect on a debt sometimes and while the court may award you in a judgement, you are the one who has to chase down the money. Anyway, good luck.

Posted by: donatella at March 17, 2009 9:57 PM

Be nice to her and ask her politely to paint and patch when she leaves. Who knows, it may happen, she may do a good job, and it may make your life easier. It's a lousy situation, I agree, but probably worth cutting your losses at this point.

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