State Specific Question About: VIRGINIA (VA)

I wrote here a couple of months ago about some tenants I have that are breaking their lease 12 months early. They wanted us to not charge them the ELT fee ($3500) specified in our lease since they were letting us know a few months early that they were moving. We told them we expected the fee, but if we were able to rent the place without losing income we would return half of it to them in return for their cooperation.

I sent them a lease termination agreement they were to sign and send back by early May along with the ELT fee that was due to us on May 15. They never signed the agreement and of course never gave us the money. My question is this….if they do decide to give us the termination money, do we have to accept it now? At this point they have not been cooperative in showing the place and helping us get it rented and we have lost some good prospects who have moved onto other properties since they couldn’t see it.

The offer was good on the day you made it, and since time has past that offer is no longer on the table. I absolutely would demand the full amount and pursue them and/or their co-signers in court if they fail to pay.

Note for future reference: always put an expiration date on any offers made, verbally or otherwise.

Another option is a call to their co-signers, which may get them off their duffs. I had to do this once, and when the co-signer refused to pay we took all parties to court, got the judgment, and collected the entire balance owed including the attorney and court fees.

Tamara,

I would tend to go for the ELT, because it is simpler on many levels, and if you are incorrect and do find a new tenant quickly you get an extra reward for your efforts.

Go ahead and call the co-signers: they should be made aware of what's going on. Encourage them to get involved with the process. I would keep it cordial but leave no doubt in anyone's mind that you expect the terms of the lease agreement to be followed. Maybe something like this...

"Mr/Mrs Johnson, I have you down as co-signers on the lease for Joey and Jill Jackson. They have informed me they are going to be breaking their lease early, but they have not paid the early termination fee. We don't want to drag everyone into court over this, but we do have to abide by the terms of the agreement we all signed. Would you please contact them so everyone's on the same page and find out what their plan is to get this fee paid promptly? That will make everyone's life easier. Normally, our procedures say I have to move this file over to our legal specialists within the next 2 business days, but if you can get me an answer before then we should be able to work out a plan to keep everyone in good standing. Thanks for your help."

Firm, fair, and polite. You're already ahead of 90% of amateur land lords who let tenants walk all over them. If they balk, simply stick to your timeline. If no ELT paid, then rent remains due as per the lease or you evict and file for judgment against all parties, including co-signers.

Tamara,

The purpose of having co-signers is so that you have someone to go after that is easy to find and should be easy to get to pay in case your tenants flake out on you. That said, I do not know the rules for how it works in VA. In MO, I just have them sign as co-tenants (i.e. they sign the lease, but don't live there), that way if I serve one it is considered "service by leaving with one tenant." I just got two tenants served this way 3 weeks ago. It is presumed that service on one party is good enough for everyone.

Tamara,

Don't be shy. YOU are the manager. Time to MANAGE.

Somehow they have thrown you off balance. Get back to center by sticking to the written lease.

Just because they ASKED something does not mean you have to change your agreement. Simply tell them no.

You are not being unfair or manipulative. You ARE being fair by treating them as you treat all residents. Everyone has the lease and we all follow it.

The lease is THE GUIDE for when odd situations pop up, such as needing to leave early.

I sense you are trying to be friendly and nice by being flexible on the rules. They see that and want to be MORE flexible. Just like kids, once you start bending the rules you lose control Then the kids get mad when you finally enforce the rules.

Firm and consistent. You are NOT their friend, you are the MANAGER.

I send ALL late notices to ALL parties - that means the co-signors get the same letter with a note reminding them this is their debt too.

The co-signors may be your best bet at getting paid.

I don't need them to sign an ELT agreement. Give it to them in writing as your STANDARD POLICY. (write the ELT into your next lease!!) We give them the option of paying the remaining months totaling $XXXX or the ELT of $XXX. Those are the only choices.

I'd drop the "half return" thing at this point.

Out of state: people do not disappear. It's not much different than moving across town. They would have to come to your court if it comes to that. Get their forwarding address. You can serve the co-signors.

Keep us posted!

-BRAD

Tamara,

Glad to hear it's in your lease!! Good for you!!

I really appreciate your openness to ask about this situation. Keep asking questions!

Make take on this: it's often a little awkward on the way out. Create LL frustration. Don't let that throw you.

Stay in control, keep up to date, protect your business at the critical time.

I spent YEARS developing our move out system because I saw (EXPERIENCED!!) how easily we lose money at move out.

Most LLs don't realize how much money is lost when residents drag it out or don't cooperate.

-BRAD

Fat fingers.

Should have read 'MY take on this'