Recently we had an ARPOLA PLUS+ member call us with a fairly common issue—her new tenant needed to back out of the lease within hours of signing it!
This ARPOLA member had scheduled a move-in date, collected the security deposit, the first month’s rent and handed over the keys. She planned on doing a walk thru of the property on move in day and thought she had successfully rented the property.
BUT! Less than four hours later, the tenant called her back and needed to terminate her lease. Turns out, the new resident’s potential employer was unable to hire her and the resident could no longer afford to rent the property.
But there are a few learning lessons and best practices here we could all stand to review. Let’s look at what the member can do to get her keys back and cover the some of the income she’s lost.
1. Schedule a time to meet with the resident and do a walk thru of the property to collect any information on damages
2. While with the resident confirm a hard move-out date and leave them instructions on where to drop, leave or mail the keys.
3. Determine what costs, beyond wear and tear to the property, you’ll incur. How long will it take for you to find another tenant? What about advertising costs? Be sure to factor in all the variables.
4. After reviewing and editing the Lease Cancellation Agreement present it to the resident and make sure you provide them a copy for their files.
After collecting payment or returning the remainder of the deposit you’re ready to start a new.