Tenant Ending Lease Early & Proof of Rent Payment

Tenant Ending Lease Early & Proof of Rent Payment by NC on October 5, 2019 @08:21

A married couple has been renting a house that I own for a little over a year now - they just renewed their one year lease two months ago. We've never had any major issues. They're clean, decent people who take care of the house and always pay. They were late with rent a few times, a couple of those times they automatically included the $25 late fee with their rent payment. The other times I let it go and didn't say anything or charge them - it was only late by two or three days.

Yesterday, they texted out-of-the-blue to tell me they have found a house they are interested in buying, have put in an offer on it and have started the loan qualification process. They said the mortgage company needs a letter stating that they have paid rent for the last 12 months and are not in arrears on any money owed. They went on to say that if everything works out, they will be moving out of the rental the week before Thanksgiving and want to do a final walk thru and turn in the keys at that time but that they'll keep me informed if anything changes.

So, essentially they're telling me in advance that they are planning to break the lease... but they're not totally sure yet. ?? And also that they need me to state they're current on payments and not in arrears. But won't they sorta be in arrears if they're breaking the lease? Also, they paid a one month security deposit, which they have not mentioned yet, but do I have the right to keep that if they move out early?

I'm a little unsure of exactly how to respond to them just yet and looking for advice. Thanks in advance for any advice or suggestions!

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Re: Tenant Ending Lease Early & Proof of Rent Payment by Garry on October 5, 2019 @10:37	[ Reply ]

All mortgage companies have their own forms that they send to a landlord asking for info about your renters payments to you. Tell your Ts to have the mortgage comp. send you that form, and then you will fill it out and send it back. Remember, being late in paying does NOT mean a T is in arrears. Right now, your Ts are simply giving you a "heads-up" about their future plans. All you can do is take it 1 month at a time.-----is Oct rent paid yet? If you and your Ts actually signed another 1 year lease, send them a letter(after Oct. rent is paid) saying you expect them to comply with the lease----Moneywise----even if they buy a place. That means they do not have to physically live at your rental, BUT, they have to pay off the rest of the lease when they move at the end of the year. HOWEVER, most courts in this country usually have let tenants out of a lease if you and they come to an agreement for a "break lease fee" of, say, equal to 2 months of rent. In most states, a landlord must try to "mitigate" their damages. That means if a T moves in the middle of a lease, the LL MUST try to re-rent the property again. And if it takes the LL 2 months to get it rented again, you could sue the former Ts for the money you lost while the unit was vacant, and you would most likely win. NO, you do NOT have a "right" to keep their deposit if they break their lease.. You must show DAMAGES against their deposit-----loss of rents, physical damages, advertising costs to re-rent the property, utilities that your former Ts were supposed to pay but didn't. A letter about their deposit, must be sent to their new address within 21-30 days of them moving out, and the keys given back.

Re: Tenant Ending Lease Early & Proof of Rent Payment

Re: Tenant Ending Lease Early & Proof of Rent Payment by lpadave on October 5, 2019 @14:13	[ Reply ]

Your Tenants have most of the current lease term in front of them and you are heading into the winter which few people intentionally want to move into another rental. this works against the tenants and in your favor for damages. the issue of karma is the other side of the coin. they've been good tenants and if they leave the premises in good condition, that works in they're favor,.....and is good for you also. In practice,.....most judges don't give LL's more than a month or two rent, for a lease break,....and your tenants have given you a heads up, rather than just disappearing. ,

Tenant Ending Lease Early & Proof of Rent Payment - Landlord Forum thread 359773