Tenant has backed out - Landlord Forum thread

Tenant has backed out by FL-LL on February 22, 2012 @12:45

Always a first.
2/2 took application for a perspective tenant
2/4 call perspective Tenant with approval. Please call me back if she still wanted the place.
2/6 Called prospective Tenant again and she stated she did want the place.
2/15 Signed lease, move in paperwork, gave her the keys
2/21 Called all concerned that we have keys and "inspection". I explained to her that inspections were not of her, but to make sure that AC functions properly, leaks, elec, etc. and that she would know in plenty of time that we were coming. Second if she wants to be present for any maintainence calls that would not be a problem. I tried to assure her that Hubby would not just come in. It is against the law.
2/22 Called doesn't want the place and wants all her $$ back
2/22 Called my RE attorney for guidance "best way to handled it."

Just spoke with attorney.
1. What does the lease say.I have to look for that section.
2. If the lease does not speak directly to this issue.
She hasn't "defaulted" yet.
3. Put it back on the market. But don't sign a new lease it until after she defaults. Otherwise I would have two leases on the same place for the same time.
4. When she doesn't pay rent March 1st, now she has defaulted. and treat like I would a "move out and send her SDSS.

While typing this up this woman has now called my house (I'm home sick, so normally I would not even be here)
four times in less than 30 minutes.

I may have just dodged a bullet, b/c I think she maybe a few french fries short of a Happy Meal.
Shaun FL

[ Reply ] [ Return to forum ]

Re: Tenant has backed out by Katiekate (New York) on February 22, 2012 @13:15	[ Reply ]

1) never agree to hold a place until you have 100% of RESERVATION DEPOSIT in cash. Be sure it says NOT REFUNDABLE. 2) Always make sure all the utility accounts are set up for new tenant...do not allow move in until this is done. 3) On day of move in, always get cash for first month and last month rent .. first...even before letting them in the unit..keep it locked till you have the money. (there have been stories about people barging their way in and refusing to pay or leave..causing an eviction even before you get any money) 4) Always do a complete walk thru and document the exact condition..have tenant sign it. 5) never sign the lease until the day of move in. (see above).. after you get money and walk thru 6) never (I mean NEVER) give keys till last. ..see above. If you follow this procedure in that exact order..you won't have these problems.

Re: Tenant has backed out

Re: Tenant has backed out by Anna Mouse on February 22, 2012 @14:00	[ Reply ]

My opinion - For future If you are selling something that is of value then you should never ever chase the person down. I know this goes against what you may think of sales people. However a good salesperson first does not sell a product that they do not have confidence in. Second If you have an item-service that is worth the price you do not chase. So where you made your first mistake is in calling the prospect back the second time. They need to be chasing you until which point the lease is signed or more important their money is in your bank. On 2/2 while you took an application you should of continued efforts to receive additional apps. Between 2/2 and 2/4 you should of continued marketing the property as if you do not have a signed lease, because you don't! 2/4 you still on track, unless you have not been continuing to take applications. When the prospect did not call back on 2/4 or there after deal over on that tenant. 2/6- big mistake why are you chasing them?

Re: Tenant has backed out

Applications

Re: Applications

Re: Tenant has backed out by NY-LL on February 23, 2012 @00:25	[ Reply ]

Tenants with lease agreements should not be able to request utility service without landlord confirmation. (Advise the utility company that service should only be initiated with the landlord's consent. In other words, the landlord should be the only individual to authorize utility account openings. Otherwise, squatters would have access to use the premises without owner knowledge. Back to the original concern, if landlord has a rental binder then the tenant forfeits the monies. Whether there is a signed lease agreement or not, the renal binder is an earnest money deposit and is non-refundable. By the way, landlord has not yet "dodged the proverbial bullet" because tenant can always sue to obtain refund of rental binder. It will be landlord's burden to convey the essence of the financial agreement for rental.

Re: Tenant has backed out by xxx on February 24, 2012 @09:40	[ Reply ]

normally, i tend to be a bit of a hard @ss about things like this she signed the lease, paid, got the keys: boom, she's a tenant for the duration of the lease but practically, she sounds like a nut that you don't really want to waste your time dealing with, so if it were me i'd be tempted to get a signed release from her, return the cash, and focus on renting to a more emotionally stable tenant because if she is acting like this now, it would only get worse if she were living there, and i always try to balance financial gain against hassle factor

Re: Tenant has backed out

Re: Tenant has backed out by Anonymous on February 25, 2012 @04:39	[ Reply ]

I avoid this by using a "holding fee" document until they are approved and have the rest of the move in $$ and sign a lease. If they don't sign I keep the fee. They don't get the keys until move in, and the lease can be invalidated if they don't turn on the utilities. Once the utlities are on we do a "move-in walk through" (required by law in my state). THEN and only then do they get the keys. Whether they move in or not at that point I could care less, so long as the rents paid. We do something very few people do. We allow tenants to cancel their lease for any reason without penalty during the first 7 days of occupancy and if they move out within 15 days with no damage we return all their deposit minus any cleaning fees and pro-rated rent. If someone isn't happy I don't want them there.