Every year, I rent my summer house for the 11 months I don't occupy it. For the past several years, I've had different tenants, but they all bring the same problem. I charge one month's rent for security. The problem I have, is my tenants will not pay their last month's rent, leaving me to take it out of their security. Then, when I go to inspect the house, they are A.) Not around, and b.) There's usually several hundred dollars worth of damages they've caused, ranging from broken windows, to torn carpets, to pictures with slashes in them, etc., and I have no security to cover this.
Is there any sort of legal recompense I can seek against these deadbeats?
Edit: I live in New York.
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I should clarify, the house belongs to my grandmother, and she picks up these leases god knows where, but it seems like she buys them in bulk, and you just fill in the blanks, and voila, instant lease. I just help her manage the house, deal with the tenants, and handle all internet inquiries.
I guess I'm wondering, what should the lease say? Or what info in it are you looking for?
Average out what the damage costs you per year, and add that onto the security deposit. Then at least you can replace whatever is broken at the end of the year.
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Also, why are you not having them pay rent one month in advance? Everywhere I've lived it's that way. For example, the rent I just paid on July 1 was for the month of July, not June. Maybe you do that already, and they are just hanging out rent free for a month?
Also also, find better tenants. Whatever screening process you are using is broke.
Technically, although YMMV from state to state, you should be able to recover for things you have damaged.
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As far as paying for the last month's rent up front, would that be in addition to the security deposit? Because that's what the security deposit has turned into, thus my problem with the damages. And if I charge them two month's rent, won't they just not pay May, and leave when challenged on it?
I guess I'm wondering, if I charge (for example) $1000 a month rent, and the lease is for 11 months, they owe me $11,000 by hook or by crook, and they can't just up and leave the house to not be liable for the money?
For instance I just put my deposit down on an apartment that's $927/mth, so I paid $463.50 as a deposit, and will write 12x $927 cheques to my landlord over the next year. Around the last week of July next year, if I move out, my landlord with do a walkthrough with me where we inspect and agree on any damages which may have been the result of my occupancy, and the appropriate amount to deduct from my deposit.
The remaining amount (or full amount, if no damages are found) plus interest, will be issued back to me in the form of a cheque.
The downside is that since your lease is 11 months and non-continuous, you're unlikely to get any long-term tenant who would actually care about the place, or at least not want the landlord to be pissed off. They know they're only there for 11 months and they have to move out, so they dick you around for the last month, knowing you can't do anything about it.
So unfortunately, unless the nature of the place changes and you can shop for tenants who may stay more than 1 year, your only real option is to make the security deposit more than 1 month's rent. The same problem will probably happen, but at least you'll have extra money for the repairs.
So, if you charge $1000 for rent, their total move-in would be $2000 + $500 security deposit.
I've been renting for the last 9 years, and the security deposit has usually been equal to a month's rent. I think first month + last month + deposit is your best bet here. And definitely put in the lease, if it's not there already, that they're responsible for 11 months worth of rent and then take them to court if they skip out.
I always wondered why landlords liked us so much, and then I hear more and more stories of renters like this.
You can't? Even if you write it into the lease?
Location matters. In some states it is illegal to ask for last month's rent up front. In some states the law is that the deposit cannot be used for last month's rent, but if you can't evict for failure to pay one month and tenants just up and leave without any forwarding info, I don't know what recourse you have for that. I guess you can sick a collection's agency on them if you took enough personal info when they moved in. Even so, if you are able and given the problems you're having, it's probably best to ask for first+last+deposit on move-in.
though it sounds to me like your security deposit is not enough. if they all skip out on the last month and use the security deposit you either need to increase the deposit to cover last month and for damages, or you need to take them to small claims to get it back
Most places require more than one month in order to legally evict people. In Maryland, the proceedings generally take 3 months. The "basic" form is as follows: you contact the tenant stating that they are late on their rent, and have [days] to pay. If they refuse, you can take them to court in order to evict them. If they don't show up, you win by default and can then evict them. But how do you evict someone who doesn't want to leave? You have to get law enforcement there to escort them off the premises, and then get your own mover guys there to get all their shit off your property.
Eviction is a HUGE pain in the ass, and even though laws vary, it's not at all a fast process. Doing it all in a month, when the person is leaving at the end of the month? Most landlords wouldn't even bother, knowing the time & effort it would take when the person is leaving anyway. Even then, the landlord simply kicks the person out -- they still don't get their money.
So you *can* evict someone by missing rent, but 1 month isn't enough time to do it.
TENANT SHALL NOT USE ANY REFUNDABLE DEPOSIT AS A CREDIT TOWARD LAST MONTH'S RENT
Right, but if they filed for it on the 2nd of the month, it could easily take a full month for the court proceedings etc., let alone scheduling a cop to come out & actually evict the person.
All of these states do also have tenant laws, and a landlord can't just storm in & throw a person's stuff on the street, even though they missed rent and may fully intend on not paying.
Does this always make people pay? No, but you'd be shocked at how often it did.
And once you've served eviction notice if your tenants have no intention of paying, any pause they might have given in letting your property turn into a shithole is out the window. And as the landlord you may have to do all sorts of shit once they're evicted (like take all their property and put it into storage at your own expense, and be liable for any damage to that property if the tenants decide to retreive their shit and say it was all broken during removal). Since you manage the property you should really do a dry run of what's involved (legally, financially, and time-wise) in evicting a tenant, and adjust your rent accordingly.
If you cannot take 1st and last months rent initially, you might consider upping base rent say 10% what you'd normally charge. That way if they skip the 11th month you've still netted the total rents you had budgetted.