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I have a tenant that might be moving out about a couple of months before their 1-year lease expires. I plan to move back in to this house at the end of what would be the end of the lease. Legally I must try to re-rent the house for the remainder of time (to mitigate my old tenant's loses). So now I'm pondering how to qualify the next tenant who would only be staying for a couple of months. If they were leasing for a full year then I'd require yearly income of 2 1/2 times rent. In this case their security deposit will cover all of the rent plus an additional month's worth of deposit. At the same time I don't want some dead beat or potential squatter. Perhaps I should just look at FICO score, no evictions, no bankruptcies? What do you all think?
Well, first of all, you're not required to lower your standards when you attempt to find another renter to mitigate damages for the one who broke their lease.
So, I'd advertise it with your normal, full requirements, for a two-month tenancy.
You probably won't find anyone. But, in case the tenant sues you, just make copies of the Craigslist ads you put up that shows the date, and keep a log of any and all calls and emails you get regarding the ad. If you have a copy of your old ad that your tenant responded to, that would be good to show what your criteria was for them. And you'd have a copy of their lease that showed how much their deposit was.
In the meantime, I'd keep their deposit. It's legal to give them an itemization on time, that includes keeping their deposit against rent owed for breaking their lease. I'd include a note on it that says you will reimburse any overpaid rent, if you find someone to take their place for the next two months, and that hopefully, they won't end up actually owing you money above and beyond the amount of the deposit (that might help keep them from suing you).
Be sure and give them the proper written notice of their right to an initial move-out inspection, so they can't sue you for doing that wrong.
Here's a CA court website that says landlords can keep deposits if tenants break their leases to use against what they might owe:
BUT if your landlord does not agree to let you off the lease early or to sublet the unit, and you still break the lease, you may be liable to the landlord for the rent through the end of the lease. The landlord will have a “duty to mitigate,” which means that he or she will have to make reasonable efforts to re-rent the unit and if he or she is able to rent it, you are only liable for rent for the month(s) it went unrented. If you end up owing the landlord rent for breaking the lease early, he or she may take it out of your security deposit.
And here is a website that goes over what you must do for the initial (pre-move-out) inspection - scroll down to the blue section:
Be sure and give them the proper written notice of their right to an initial move-out inspection, so they can't sue you for doing that wrong.
Is that a note basically saying that they have the right to do a walk-through with me to note anything above and beyond normal wear and tear?
Why don't you think I'll find someone? I can imagine someone who is house shopping who would want to stay short-term. For short-term stays, Air BnB and VRBO is basically their only other option, but they can expect to pay a lot more than my price. Shorter-term stays are more expensive. Rent prices have also gone up about 7% since this lease. I would have to stick to the old price.
And what if it gets down to a matter of perhaps 3 weeks, 2 weeks, etc. I wonder if I'm legally required to keep trying to find a tenant, perhaps on VRBO or Air BnB? I wouldn't want to risk moving someone in who I can't screen.
Last edited by Big-Bucks; 09-21-2016 at 02:08 AM..
I have a tenant that might be moving out about a couple of months before their 1-year lease expires. I plan to move back in to this house at the end of what would be the end of the lease. Legally I must try to re-rent the house for the remainder of time (to mitigate my old tenant's loses). So now I'm pondering how to qualify the next tenant who would only be staying for a couple of months. If they were leasing for a full year then I'd require yearly income of 2 1/2 times rent. In this case their security deposit will cover all of the rent plus an additional month's worth of deposit. At the same time I don't want some dead beat or potential squatter. Perhaps I should just look at FICO score, no evictions, no bankruptcies? What do you all think?
Keep the same standards if you want to. All you're doing is a short term lease. You're not required to change your acceptance standard to qualify a tenant.
You're gonna have a small pool of renters for a 1-2 month lease. You might get a snowbird or guy on a long business trip. Maybe some corporate type.
I certainly would not be looking for a short term tenant 2 months before I planned to move into the house myself. I'd leave the house empty and get it cleaned up, repainted, repaired, updated and ready for me to move in.
I'd simply eat the lost rent for 2 months and be happy that I would actually have my house back when I wanted it instead of a tenant who stayed past his move-out date and refused to move. (got one of those right now, should have been out 5 days ago, still there with no rent paid for the past 5 days.
I think you will rent easily for the shorter term. Either someone in town for business for a short period of time or someone that has sold their home and is searching for a different home to purchase, but didn't find it yet. Also people moving into the area from elsewhere that are searching for a home to purchase.
I have a tenant that might be moving out about a couple of months before their 1-year lease expires. I plan to move back in to this house at the end of what would be the end of the lease. Legally I must try to re-rent the house for the remainder of time (to mitigate my old tenant's loses).
That's an easy one. Just advertise the same rent (you could probably change it) and state the rental is available only until the end of the present lease expiration date (i.e. the day you intend to move in).
Document it as described above. Chances are the only thing you will have to document is your listing since I'm almost certain nobody will want such a short term rental. My bet is you don't get even one call or email unless it's to tell you that you are crazy.
Do remember to give them legal notice that their lease will not be renewed at lease termination! ... You said might which indicates to me that you have not yet received written notice. Make a preemptive strike and send the legal notification via certified mail.
Note that you did not state if you are in an area subject to rent control, and I am not an authority on California rentals. It is not unusual in many jurisdictions that landlord must give tenant 60 days termination notice before lease termination date when the lease cannot be renewed and does not automatically turn into month-to-month. YMMV
Make certain that you have been served with legal notice of tenant intends to move, including the move-out date. Otherwise what are you going to do if you rent it to a new tenant and old tenant changes their mind?
advertise it with the same rent and same standards. hope no one qualifies and still collect rent from the original tenant. but if someone does qualify let the applicant know you decided to move in yourself instead of renting and stop collecting rent from the original tenant.
There is no rent control on residential homes in LA City. As far as state law goes, A landlord must give 60 days’ advance notice if the rent increase is greater than 10 percent. For less than 10% you must give 30 days notice.
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I think you will rent easily for the shorter term. Either someone in town for business for a short period of time or someone that has sold their home and is searching for a different home to purchase, but didn't find it yet. Also people moving into the area from elsewhere that are searching for a home to purchase.
The place is NOT furnished. Still feel the same?
My competition is VRBO and Air BnB, which are furnished. If potential tenants are looking on Zillow, Trulia, etc then my place would probably be the only short-term rental available. There's very few 6-month lease homes. I've never seen a home renting for less than 6.
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Do remember to give them legal notice that their lease will not be renewed at lease termination! ... You said might which indicates to me that you have not yet received written notice.
They are well aware about giving notice. They've actually been keeping me in the loop about their likely plans.
Keeping you in the loop regarding likely plans does not constitute legal notice. Only legal notice counts. Everything else is worth the paper it isn't printed on.
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