Tenants signed a lease agreement for one year, lease agreement was singed a month before the scheduled date to move in. In order to hold the house they agreed to pay for half of the deposit and the other half was going to be paid on the first of the month along with the first month's rent. They called before the first of the month stating that they did not have the money and would like to back out of the lease, and were asking if I could give them the deposit money back. What are my options? Can I sue for the entire lease?
2007-06-06 11:58:35 · 6 answers · asked by nochez_13 1 in Business & Finance ➔ Renting & Real Estate
A signed lease agreement is just that...signed...the tenant is obligated to pay you for the term/duration of the lease.
Now, you could do a few things.
You can break the lease if you realize this person or persons don't have the money and you don't want to take them to court.
Or you can take them to court and you would win the case. A singed lease is a legal binding agreement. There is nothing they can do to break that. It is your choice. If they don't have the money now, they will garnish wages, etc so you get your money.
They do not get their deposit money back, and yes, you can sue for the entire year.
There are ways to work around suing someone over this, but I have dealt with some not so nice tenants in the past and you might have to take them to small claims court to get your money.
You will win...you have a signed lease, a legal agreement stating the other party would pay such and such ammount for 1 year. That has to be honored.
Good Luck!
2007-06-06 12:14:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Depending on the legal clauses in the lease agreement you have signed, you may or may not be able to sue for damages.
Also, what is the understanding of the terms of the deposit when they gave it to you? Is there a written agreement for the deposit? If not, what was the oral agreement?
Since the tenants have signed, but then breached the contract, legally you are in the right. In general, deposits are done to hold the unit, so that you don't rent out to other people. If this is the reason for the deposit, then you have completed your side of the responsibilities and therefore they should not have the claim to the deposit by their unilateral breaching of the contract. Instead, if this is the normal deposit you have on leases, then you can also claim that they have caused you to lose income by breaching the contract because now you have to put this unit back on the market.
Technically, you could try to sue for the entire lease, but in a civil court, you may not always win, especially against tenants. You are entitled to incomes lost due to the last minute breach of contract, but going for the entire amount will instantly make you look like a greedy money grabber who is not to be trusted. Judges aren't always on the side of the "favored" party when it comes to things like this against underdogs.
I recommend:
1) Remind your ex-tenants the reason and terms of the deposit. You have the legal right to keep the money.
2) Don't be greedy and go after the entire agreement. If you go to the courts, the judge may find you greedy and untrustworthy and may award the deposit to your ex-tenants.
What you could do is to let your tenants sign a WRITTEN agreement that will legally release the tenants from the lease agreement if they pay a cancellation fee. This may be something that is already in the lease agreement. Check it first!
What you want to tell the tenants is that legally, they are liable for the lease. However, you are willing to let them back out of the lease with a cancellation fee. That way you are keeping a reasonable amount to compensate your losses and legally and ethically, you are in the right.
Good luck!
Just Be!
2007-06-06 12:28:23 · answer #2 · answered by MBA Don 4 · 0⤊ 0⤋
I understand why they did it, but in my opinion, very self centered. Apparently they are hurting financially, but their poor decisionmaking is not your responsibility.
They signed a lease and you got 1/2 the deposit (next time get it all). I would NOT return the deposit unless you will be made whole in this agreement. Their stunt will cost you money because the place is empty and they don't intend to pay rent, right?
I would keep the money you have...find another tenant as fast as possibe, then go after them in small claims for the delta of what their stunt cost you.
If you hold them to the lease, well, I see two things wrong with that approach...(1) the bureaucratic nightmare (not to mention $$ to get a lawyer) and (2) they don't appear to have any money so if you do go after them and you do win, still, what money do you intend on getting?
2007-06-06 12:12:46 · answer #3 · answered by CG 6 · 0⤊ 0⤋
It really depends on the contract and the amount of time they have to back out of it. Can you report them to a credit agency like Experian? The lease contract is there to protect both you and the tennant. I would think, that if it after the time alloted to back out, any money down is yours. If you do decide to take them to court consult a real estate lawyer.
2007-06-06 12:12:33 · answer #4 · answered by mrthomas425 3 · 0⤊ 0⤋
you're fortunate, they did no longer pass in. Refund. HELL NO. i might write a letter which you will launch them in line with THEIR REQUEST from the hire effective immedialty. in spite of the incontrovertible fact that, you will maintain the deposit and popular month hire for damages of their breaking the signed hire settlement. Then rerent. they actually don't have a case right here. They DID inspect the valuables till now they signed the hire, so as that they did no longer of the "scent". additionally, i'm making a wager that they are going to ask to head into the home while they get your letter. do no longer enable them to. they are going to be a situation. They broke the hire, so enable them to and pass on. the only element they are able to do is sue you for the deposit and hire and in the event that they do, the choose will come to a decision. cause them to artwork for the money.
2017-01-10 17:07:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
assuming this is in the USA, you can not sue for the entire lease, you have a legal duty to mitigate your damage
meaning you can charge for advertising to rent and the time the place is empty but you must make an attempt to re-rent the place as soon as possible, if you sue it will be your legal burden to show you tried to rent the place and how long it took to re-rent
2007-06-06 12:22:25 · answer #6 · answered by goz1111 7 · 0⤊ 1⤋