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landwoes · May 31, 2009, 03:55 AM

Contract states tenant given 1st and last months rent. Tenant changes mind and wants out of contract after 15 days after walkthru/move in and vacate date is June 15. Are they entitled to a prorated rent or am I entitled to keep the rent for the whole last month? No definite terms for termination on contract.

ScottGem · May 31, 2009, 05:02 AM

A lease is a binding contract. They are responsible for the full term of the lease or until the landlord gets a new tenant.

excon · May 31, 2009, 05:54 AM

Originally Posted by landwoes

Are they entitled to a prorated rent or am I entitled to keep the rent for the whole last month?

Hello land:

You need to prorate it, but not based on how much time THEY were there, but how much time it takes you to find a new tenant. If you find one HALF way through what would have been their last month, they get HALF the last months rent back.

excon

landwoes · May 31, 2009, 06:02 AM

Scott,

Three months and 40 families later of trying to find the right tenants to our acre home, I have chosen the tenants from $%#@!

My tenants broke their month to month contract after 15 days. They received keys on May 1st at walk through. A couple of minor things needed to be done but listed on walk through to have tentative date scheduled which they signed off on and agreed. Later I found that they were still trying to save their soon-to-be foreclosed home but yet signed contracts with us unknowing that they were trying to still save their home. They are threatening to sue for the whole amount given $3000 for 1st and last month rent but their date of vacate is June 15 per 30 day termination letter. They did move in furniture and changed ceiling fans. They refuse to paint back two rooms that they had repainted and they want to make a deal to give back keys on June 1st with the return of $1500 (one month's rent) or they will proceed with litigation. I wrote a letter to agree but have changed mind since then and wrote another letter stating changed of date of walk-out inspection to June 15th as agreed prior. A stipulation they have stated in a letter is that they could not move in due to the counter top stove being installed on May 12th, however, on the walk-thru inspection paperwork it states that it was to be replaced. It did work at time of inspection but was not updated as the other newly replaced appliances. I agreed to replace it but I listed stove "to be replaced" on the inspection log and neglected to list "working" at time of walk through. Do they have probable cause to sue, do I have to prorate their amount if there are no specifics on contract about termination only that tenants have paid for first and last month's rent and if I do need to prorated rent what is the time frame for the return to be received? I have devoted so much time to this project that I just don't feel that it should be my fault that they decided to stay in their foreclosed home for 6 months for free all the while expecting any monetary return for my inconvenience. HELP~~~!!

landwoes · May 31, 2009, 06:18 AM

Originally Posted by excon

Hello land:

You need to prorate it, but not based on how much time THEY were there, but how much time it takes you to find a new tenant. If you find one HALF way through what would have been their last month, they get HALF the last months rent back.

excon

Excon,

Thank you for such a quick response! I think I understand that I have the right to the first 15 days of rent due to the 30 day termination letter vacating premises on June 15th. However, do I also have the right to the end of the prorated amount if I do not find tenants? And what is the timeframe to return prorated rent for the state of CA? And any answers that you can give me as well for the question I re-entered for Scott would be great help!

With great appreciation,
Jessica

landwoes · May 31, 2009, 06:19 AM

Originally Posted by ScottGem

A lease is a binding contract. They are responsible for the full term of the lease or until the landlord gets a new tenant.

Hi Scott,

Three months and 40 families later of trying to find the right tenants to our acre home, I have chosen the tenants from $%#@!

My tenants broke their month to month contract after 15 days. They received keys on May 1st at walk through. A couple of minor things needed to be done but listed on walk through to have tentative date scheduled which they signed off on and agreed. Later I found that they were still trying to save their soon-to-be foreclosed home but yet signed contracts with us unknowing that they were trying to still save their home. They are threatening to sue for the whole amount given $3000 for 1st and last month rent but their date of vacate is June 15 per 30 day termination letter. They did move in furniture and changed ceiling fans. They refuse to paint back two rooms that they had repainted and they want to make a deal to give back keys on June 1st with the return of $1500 (one month's rent) or they will proceed with litigation. I wrote a letter to agree but have changed mind since then and wrote another letter stating changed of date of walk-out inspection to June 15th as agreed prior. A stipulation they have stated in a letter is that they could not move in due to the counter top stove being installed on May 12th, however, on the walk-thru inspection paperwork it states that it was to be replaced. It did work at time of inspection but was not updated as the other newly replaced appliances. I agreed to replace it but I listed stove "to be replaced" on the inspection log and neglected to list "working" at time of walk through. Do they have probable cause to sue, do I have to prorate their amount if there are no specifics on contract about termination only that tenants have paid for first and last month's rent and if I do need to prorated rent what is the time frame for the return to be received? I have devoted so much time to this project that I just don't feel that it should be my fault that they decided to stay in their foreclosed home for 6 months for free all the while expecting any monetary return for my inconvenience. HELP~~~!!

ScottGem · May 31, 2009, 06:25 AM

The contract was for a month to month tenancy? They took possession on May 1 and gave you 30 days notice on May 15?

If so, you need to return one half the last months rent. Since it was a month to month, they can terminate on 30 days notice. Having done so, you have to prorate the June rent.

excon · May 31, 2009, 06:38 AM

Hello again, Jessica:

Scott and I disagree on this point. It's MY view, that rent has to be paid in monthly increments. It would ONLY be prorated if you found a tenant in the middle of the rental period.

So, if the rental period started on the 1st, and they gave notice on the 15th, the 30 day notice becomes effective on the 1st of the following month. Therefore, you'd only owe them a refund if you found a tenant during that month.

excon

landwoes · May 31, 2009, 07:25 AM

Originally Posted by excon

Hello again, Jessica:

Scott and I disagree on this point. It's MY view, that rent has to be paid in monthly increments. It would ONLY be prorated if you found a tenant in the middle of the rental period.

So, if the rental period started on the 1st, and they gave notice on the 15th, the 30 day notice becomes effective on the 1st of the following month. Therefore, you'd only owe them a refund if you found a tenant during that month.

excon

So is that the case because there are no specifics on whether the termination of the contract accepts mid month terminations or is it because contract listed payment of 1st and last months rent without specifying 30 day termination notice. And if I were to give prorated rent, would that be due at time of walkout inspection? The tenants are stating that if I do not give them their rent at time of walkthru they will not transfer keys and will plan to take me to small claims court. If they do turn over the keys on June 1st, however, are they liable for the whole months rent by turning over possession? I previously was going to accept that to be rid of the whole situation but retracted the date and re-informed of the new walk-thru date of June 15 bacause they technically are entitled to access of the property until June 15. However, they are specifying acceptance of the June 1 date even though they have a letter with the date change. Since I retracted the June 1st date do I have to refund them for the whole month if they give me the keys on the first?

ScottGem · May 31, 2009, 04:00 PM

No, they are required to give 30 days notice. As I recall CA law, notice does not have to be a full rental period. So, they legally are obligated until June 15.

If they do not turn over the keys on June 15th, then you inform them, that until they do, they retain possession of the aprtment and are liable for rent. Tell them, by law, you have 30 days to return any deposits or prepaid rent.

If they want to sue, you, they can, but they will lose.

landwoes · May 31, 2009, 04:19 PM

Originally Posted by ScottGem

No, they are required to give 30 days notice. As I recall CA law, notice does not have to be a full rental period. So, they legally are obligated until June 15.

If they do not turn over the keys on June 15th, then you inform them, that until they do, they retain possession of the aprtment and are liable for rent. Tell them, by law, you have 30 days to return any deposits or prepaid rent.

If they want to sue, you, they can, but they will lose.

Thank you everyone for your knowledge. I am a 3rd semester nursing student and have come to find the appreciation in the idea of a property manager. I am usually a very precise person but am quite distracted with school. You have saved me with future restless night sleep!

Thanks again,
Jessica