It is the first of the month and
the rent is due. The rent does not come in and a notice to pay rent or quit is
served. The majority of tenants pay the rent. But what if the tenant decides to
“quit,” by vacating the property?
The first reaction is usually anger and outrage
on this unfair turn of events because the owner will not have the rent and
there is a high probability there will be damage. When the initial emotion
passes, it is more productive to take a different perspective.
§ It is better to have a sudden vacancy than go through
the strain of waiting to see if they are going to pay, working through the
escuses and behavior of a tenant stalling for time, and then having them vacate
anyway.
§ The property manager and owner now do not have to
make the agonizing decision to start formal eviction proceedings or spend time
waiting for the rent.
§ Bypassing an eviction means avoiding more
expenditures and time to remove the tenant.
§ If the current tenant is not going to pay the rent,
it is better to have the property back so a paying tenant can be procured and
the tenancy can be improved.
§ The security deposit can be applied to damages and loss
of rent.
Can you take possession? Yes, if a tenant abandons the property, you can take
possession. If they have left personal property in the residence, then
consideration has to be given to the value of what is left behind and how to
dispose of it. It is important that a property owner does not rush into selling
off the personal items of a tenant to regain what the tenant owes them.
Do they still owe the rent? If they are
on a lease, the tenant will still owe the rent until the property is re-rented
or the ending date of the lease, whichever comes first. If they are on a month-to-month tenancy, the
rent is normally due for what is specified in the rental contract regarding the
amount of notice required.
Do you still have to send a statement on a security
deposit? Yes, even if it is to the
property address with a “please forward and/or address correction required.”
This way, the property manager and/or owner are covered for itemizing the
monies deducted against the amount of the deposit. It is good business to
itemize security deposit damages whether the tenant vacates suddenly or follows
the terms of the contract.
Can you report them to a credit reporting agency? Yes, as long as there is written documentation,
attempt at notification, and if the rental agreement and/or notice to quit
contains important wording notifying the tenant that the landlord has the right
to report them to a credit reporting agency. This is required under Federal
Credit Reporting Act law.
Can you still seek damages? Yes, you can
always seek damages in any situation if a tenant owes rent or damages. The first
step is to obtain a judgment in small claims or report the loss to a credit
reporting agency.
How can you collect damages? The best solution is to use a collection agency
since they have the tools and expertise to track people who owe money. Although
the agency does collect a fee, it is better to receive some renumeration rather
than nothing at all.
How do you avoid this situation? As your property management company, our solution is
to prevent this by obtaining a qualified
tenant. However, there are no guarantees
this will work. People often encounter difficult situations, such as divorce,
drugs, loss of employment, high medical bills, and more that often lead to poor
judgment in handling their personal situation.
However, if the tenant quits, it
is better to take the most productive course of action and move on to a better
tenancy for your investment and your peace of mind.
