Reneged On Lease Deal (by Rob [ME]) Aug 22, 2017 9:40 AM
Reneged On Lease Deal (by Doogie [KS]) Aug 22, 2017 10:23 AM
Reneged On Lease Deal (by Jan [MO]) Aug 22, 2017 10:24 AM
Reneged On Lease Deal (by David [MI]) Aug 22, 2017 10:25 AM
Reneged On Lease Deal (by Deanna [TX]) Aug 22, 2017 10:54 AM
Reneged On Lease Deal (by Johnny B. [MA]) Aug 22, 2017 11:18 AM
Reneged On Lease Deal (by Vee [OH]) Aug 22, 2017 11:25 AM
Reneged On Lease Deal (by S i d [MO]) Aug 23, 2017 6:25 AM
Reneged On Lease Deal (by S i d [MO]) Aug 23, 2017 6:30 AM
Reneged On Lease Deal (by Pmh [TX]) Aug 23, 2017 2:08 PM
Reneged On Lease Deal (by Harpazo [GA]) Aug 23, 2017 5:25 PM
Reneged On Lease Deal (by BRAD 20,000 [IN]) Aug 24, 2017 12:40 PM
Reneged On Lease Deal (by Pmh [TX]) Aug 24, 2017 2:30 PM
Reneged On Lease Deal (by PeterAK [WI]) Aug 28, 2017 11:15 AM
Reneged On Lease Deal (by Rob [ME]) Posted on: Aug 22, 2017 9:40 AM Message:
After viewing apartment 8/4, prospective renter requested me to hold it open for another day (to the exclusion of others) while he viewed competing apartments, then called back at end of day and wanted to apply to take it. He expressed a desire to quickly accomplish all the formal documentation and gave written notice of intent to occupy 9/1. All the following was accomplished electronically. A signed Rental Application was submitted 8/7. References and credit bureau were cleared and prospect signed Lease Agreement and House Rules 8/7. Prospect and I were to meet 8/10 at noon to complete signing of secondary documents, i.e, Carbon Monoxide Disclosure, Lead Paint Disclosure) and receive $500 up front financial commitment per Lease Agreement. Prospect called me 8/10 an hour and a half before meeting to say he has decided not to rent the apartment and has committed to other living accommodations. I immediately posted the apartment for rent to try and find another tenant, as usual and customary.
If I don't find a tenant by September 1, do you think I have justification to hold this person accountable by a Small Claim of $500 ? If not, what would you consider a fair compensation to propose in this circumstance? --74.75.xxx.xxx |
Reneged On Lease Deal (by Doogie [KS]) Posted on: Aug 22, 2017 10:23 AM Message:
Not sure what ME law states, but I've been over this with the attorney many times. They haven't moved in yet and haven't paid anything, therefore no possession was actually taken. Can't charge them anything. Yes, even if lease is signed. I wasn't happy about it, but that's life. Maybe a holding fee would be better in the future payable as soon as they verbally commit to it. If ME law allows it, you could at lease keep that. --98.175.xxx.xxx |
Reneged On Lease Deal (by Jan [MO]) Posted on: Aug 22, 2017 10:24 AM Message:
You don't say that you agreed to "hold the apt. open" while prospect looked around but the fact that prospect even asked you to do this is a huge red flag. Never in a million years would I agree to do that, and I would be very reluctant to rent to anyone who had the gall to ask. I mean, how spoiled and entitled can one be?
When my prospects' rental application is approved, they sign the lease and give me the security deposit, paid via cashier's check or money order, within 3 days. Your problem is you don't have any money from this guy. He assumes the lease is now void, and you haven't told him it isn't.
Seems to me you have two choices 1) Tell prospect a lease is a legally binding contract and he is bound by its terms; therefore, he owes you the security deposit AND rent until you find another tenant (and you're making every effort to do that, pursuant to the law...) 2) You can consider this a learning experience and forget about going after him.
I think filing a $500 claim in small claims court is silly. I also don't think it's likely to succeed. What are your actual damages at this point?
Filing a breach of contract case in civil court, though, (option 1 above) may work. But you have to wait until you have damages. The rent isn't due yet if the lease doesn't start until 9/1. If the rent isn't paid 9/1 or by whatever grace period you may have given, then you'll have damages.
If you decide you're going to hold him to the lease, send him a carefully worded letter letting him know what his obligations are. He will ignore it. Then you'll have to file suit.
Good luck.
--144.191.xxx.xx |
Reneged On Lease Deal (by David [MI]) Posted on: Aug 22, 2017 10:25 AM Message:
never ever stop showing and screening until you have a lease signed and certified movein funds in hand. --12.156.xxx.xx |
Reneged On Lease Deal (by Deanna [TX]) Posted on: Aug 22, 2017 10:54 AM Message:
He asked.
You don't have to say yes. It's not in your best interests to say yes, as you've found.
"If you want me to hold it for you, the holding fee is $x." [Mine is usually 1/2 rent for that period.] "That represents the cost of the house being taken off the market while you get your financials in order. It doesn't count towards the security deposit. It doesn't give you possession. All it does is hold the house until [date]. And if you don't sign the papers and move in by [date], then the house gets offered to the next-in-line."
I magically came up with that policy after I offered a house to a successful candidate who lived a block away in his mom's house-- and wanted me to hold the house three weeks until his next holiday, so he didn't have to "waste a weekend" moving out of his room. :P
As he did, they usually decide that's a poor exchange for what they get in return, so they usually manage to either (a) come up with the funds, or decide that (b) they don't really want the house after all. If their financial situation is so precarious that they can't swing move-in costs, I know I'm better off without them.
But otherwise, pulling that sign out of the ground is the last thing I do, after I have a signed lease and move-in funds in hand. And I keep answering that phone and showing that house, even after the first-in-line has accepted, but hasn't yet signed papers and paid money. --96.46.xxx.xx |
Reneged On Lease Deal (by Johnny B. [MA]) Posted on: Aug 22, 2017 11:18 AM Message:
I have a standard deposit to hold agreement that I have a perspective tenant sign prior to me taking the unit off the market. When they sign the agreement I take 1 months rent as a non-refundable deposit. When we later sign the rental agreement, the remaining move in balance is due. --174.199.xx.xxx |
Reneged On Lease Deal (by Vee [OH]) Posted on: Aug 22, 2017 11:25 AM Message:
Landlord lesson 105, check that off the list - verbal agreements unpaid and unsigned, pretty much as good as what they are written on - thin air, so next time use your non-refundable holding fee agreement (amount equal to one month rent value for 8 days), this amount will apply towards the damage deposit amount when the lease is signed and remaining deposit and first months rent are paid in full so a lease may be executed, otherwise the funds are non refundable unless the unit is not ready for movein then and only then are they refunded to the applicant. --76.188.xxx.xx |
Reneged On Lease Deal (by S i d [MO]) Posted on: Aug 23, 2017 6:25 AM Message:
For your circumstance I think recourse will be difficult. Your lease contract did not include any exchange of consideration (i.e. money), which means it is probably not an enforceable contract. See basic contract law principles on "consideration". It can be argued that until the value promised is actually exchanged there isn't a valid contract. You did not provide any housing. The prospective tenant did not pay you any money. You would have to sue and prove otherwise, and even then you will spend the $ to file and have to try to collect on the judgment which may or may not yield any money. For $500, to me it is not worth the time and hassle. I would move on and find another tenant.
I use a Holding Fee Agreement instead of a signed lease in a situation like this. We specify in the contract that the money the prospective tenant pays is a fee in exchange for the time I agree to hold the property vacant and exclusively for rent by the prospect for "up to 2 weeks". Therefore, the consideration exchanged is MONEY paid for TIME. If even 1 minute elapses after they sign and pay they have received what they paid for. If they back out for any reason and/or are unable to complete the deal...the money is already mine and they have already received the value promised. --173.19.xx.xxx |
Reneged On Lease Deal (by S i d [MO]) Posted on: Aug 23, 2017 6:30 AM Message:
P.S. Notice I did not use the word "deposit" anywhere in my Holding Fee Agreement. Deposits are refundable (even so called "non-refundable deposits"...such things are fiction!). Fees are not refundable. Be certain to use the correct language. --173.19.xx.xxx |
Reneged On Lease Deal (by Pmh [TX]) Posted on: Aug 23, 2017 2:08 PM Message:
You did have a signed lease agreement. I suppose you did remove property from available. You could sue. there was a contract. they have decided not to take possession. the mistake was not collecting first mo rent & deposit at signing. lesson learned. or a holding fee. you will spend more in fees than an arbitrary $ amount in damages. so move on & repost. --104.218.xxx.xx |
Reneged On Lease Deal (by Harpazo [GA]) Posted on: Aug 23, 2017 5:25 PM Message:
We've all learned this the hard way. Had this happen b4 but now, as other posters have said, No $ NO DEAL. He's more hassle than he's worth. You won't win plus endless wasted energy to teach this dufas a lesson. Focus on renting and you'll get a tenant. --76.97.x.x |
Reneged On Lease Deal (by BRAD 20,000 [IN]) Posted on: Aug 24, 2017 12:40 PM Message:
Rob,
No. You are SOL. Without the exchange of "consideration" (money) the contract is incomplete. Sorry.
You were played. He strung you along long enough to get qualified at the other place. Not to worry, it's part of the game. Our job is to protect ourselves. Believe or not, applicants lie.
From now on...We NEVER hold. This rule ALWAYS works, rain or shine:
***It ain't rented til it's rented ***
That means signed and paid.
The home stays on the open market until rented. We collect prorated rent starting the day we sign so if the home is vacant he also talked you out of some rent. If vacant, rent with the rent starting now.
The good news: this was inexpensive tuiition in LL 101.
BRAD
--68.50.xx.xxx |
Reneged On Lease Deal (by Pmh [TX]) Posted on: Aug 24, 2017 2:30 PM Message:
Brad. Consideration is not only money. It is also benefits. here the consideration is one signer having the benefit of a place to live. for the other it is the rent. money does not have to be exchanged to have a valid contract. I could have a contract for someone to set up a web site for me and in exchange I give complimentary rooms in a hotel I run. no exchange of $ but there was an exchange of value to each party. here there is a valid contract. but sometimes better to lose a battle in order to win the war. which is to find someone else to rent.. --104.218.xxx.xx |
Reneged On Lease Deal (by PeterAK [WI]) Posted on: Aug 28, 2017 11:15 AM Message:
Sounds to me like you just learned a $500 lesson. Yes, you could go after them and likely win, but would it be worth it?
I don't sign a lease unless they hand me the full security deposit in cash (this is the one and only time I accept cash) or cashiers check. --67.53.xx.x |
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