Landlord (me) backing out of verbal agreement (apartment, lease agreement, tenant)
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I would like input from experienced property managers on how to handle this... I have a cute charming bungalow that I lived in for years. It is a well maintained place. I work in another area and for the last year have been maintaining it living there on weekends. Anyway, I was undecided on selling it because I know I will never live in the area again or rent it out. I advertised for a renter and selected one I thought would be good based on probably an inthorough background check. I figured if I rented it, I could always sell it later. Anyway, I verbally and by email agreed to rent to the person late last week. The person gave notice with their current landlord and exprects to move into my house the end of July. Here is where it gets very muddy....
I have SERIOUS misgivings on renting it to this person and I am thinking of cancelling my agreement to rent. No lease or agreement has been signed and no money has changed hands. It is just my email and verbal agreement. I have always been one to keep my word and I feel REAL bad about breaking this but what options should I take to cancel this? The background check I diid was to verify employment, not earnings, and his current residence duration and rent payment. Employers will not indicate anything beyond the person works there. The tenant is ex military and gets a modest VA check that falls short of my rent amount. Tenant has also said they occasionally are late with current rent due to not always getting their VA check on time. Tenant also said they did not have full security deposit at move in time but would make it up. Today, I showed my friend the jobs the tenant has and she told me they are high turnover low paying jobs. Ok, long story short is, I feel I made a mistake verbally agreeing to rent to this person on my quick and inthorough background check but I feel I am screwing this person by breaking my word now that they have given notice with their landlord and have started plans to move. Just be blunt with me if you have been in similar situations. Should I just tell them I changed my mind and feel like a backslider? Should I offer some cash to cover any expenses incurred? The tenant lives in an apartment building now and I have no idea if it is rerented or could continue on.
Hire a qualified property manager. Tell them that you have decided to let a management company handle the property and if he's interested, he can contact them for an application. Which is what you should have done in the first place. Business transactions should be based on solid policy applied to all equally and without emotion.
Your 'verbal agreements' and e-mails are a question for an attorney however. I'm not really sure what recourse this person might have. Probably none in all likelihood because no money has changed hands and no lease has been signed. You could simply say you've changed your mind and you're sorry for his potential trouble. Why would you agree to rent to someone who doesn't have enough income and has been late on the rent? And VA checks are deposited regularly just like SS or any other gov't checks to my knowledge so his claim that they're sometimes late doesn't fly.
It's an unfortunate situation but since no lease has been signed, no money has changed hands and the prospective tenant hasn't moved in, you certainly can change your mind without legal repercussions and should do so immediately. Good advice to put the property into the hands of a property management company ...
A verbal agreement is as good as the paper it is written on. You have no obligation to rent to the person and can change your mind. The person can at the same time tell the apartment where he is living that he is not moving afterall. Go with your gut instincts and do not rent to the person.
If you are not going to be nearby, get a property manager.
Technically, I think email exchanges can constitute a written agreement. That said, if you are having such serious misgivings, I would back out. It sounds like this tenant is going to be much more trouble than they are worth.
Potential renters give me verbal agreements all the time:
"I'll fix the place up"<---yet hey haven't seen it.
"I'll have the money next week"
"I'll have the money next month."
It all falls through. Then people wonder why landlords act like hardasses.
Technically, I think email exchanges can constitute a written agreement. That said, if you are having such serious misgivings, I would back out. It sounds like this tenant is going to be much more trouble than they are worth.
Incorrect. A verbal agreement is legally upheld in court if no lease exists as long as money has been exchanged and/or the tenant has moved into the premises. Without a written agreement the rental becomes a month to month lease agreement according to the applicable landlord/tenant laws.
No money has been exchanged in this case, no lease has been signed and the prospective tenant hasn't moved in. There has been no agreement which in any way constitutes a legally enforceable contract.
You've screwed this person out of a place to live? He has given notice and 'hopefully' he will be allowed to maintain his residency there. Is this the picture. Shame on you...
Koale
You've screwed this person out of a place to live? He has given notice and 'hopefully' he will be allowed to maintain his residency there. Is this the picture. Shame on you...
Koale
Oh, come on! It's only the 6th of the month so the prospective tenant has ample time to find something else before this month's end or else stay where he is if the present LL hasn't already done a quick turnaround. If the prospective tenant was anxious to seal the deal he would have paid the security deposit up front and sealed the deal with a lease but - remember? - he didn't even HAVE the security deposit. Business is business.
My take on it. Because you failed to do the type of research you should have done you are pretty much screwing this person. Is it legal? Sounds like it. Is it a crappy thing to do to someone" Yep.
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So basically...
