Renters backed out of oral agreement

[paperflask]

Michigan
To start...I was an idiot and see that clearly now.

Potential tenant sent me an enthusiastic email saying they were interested in my residential property. I verbally agreed to rent to them and collected a check as a deposit. I did not cash the check. One week before the start of the lease, they sent me a text message saying they were no longer interested. The day before they sent me the text they stopped the check I had in my possesion.

Can I sue them or am I wasting my time?

 

[ecmst12]

You can sue them, but you'd have to prove that there was a mutual agreement to rent this property, since they never moved in. The email might be enough, depending what it said, or it might not. Obviously something in writing and SIGNED by them would be better.

 

[sandyclaus]

Having collected a deposit check from them also shows intent to enter into a rental agreement, whether such an agreement has been signed or not. A check is a contract to pay someone a sum of money, and in this case, it implies that they intended to rent. The fact that they put a stop payment on it makes them liable for the amount of that check still as well.

That gives you a little more credibility should you choose to pursue this.

 

[JETX]

Can I sue them or am I wasting my time?

This is directed to the OP (not for others to guess)..... What are your EXACT damages??

 

[paperflask]

In regards to my damages....I turned away other qualified tenants that were interested in the property. I have lost a month and a half of "marketing" time because the property has been off the market since I accepted the check. At the very least I would want the deposit amount, however I don't think asking for one month's rent would be excessive....given the lost rent that them backing out will cause me.

In the event a tenant breaks a written lease, by law they are to pay me rent until the unit is re-rented or the lease expires. I have some friends who have been renting for 20+ years and laugh at this because they have never been succesful at convincing a judge to grant a judgement based on this.

 

[juber0]

You may have a case.

You could possibly sue for the loss of not being able to market it. As for the check it showed an interest that they wanted to rent the place, but I am not sure if that is enough to convince a judge. Since they never stepped foot in the place could you argue that they DID rent the property?

All I see is being able to mitigate your cost for taking it off of the market. Which couldn't be much.

Do you honestly think that you should be allowed the entire deposit amount if they never lived there?

 

[ecmst12]

The MOST you could possibly get is one month's rent.

 

[juber0]

Also you did not mention if this was a one year or month to month lease. I'm assuming that wasn't mentioned in the emails.

 

[ucf]

Since they stopped payment it shows me that they backed out of a contract. As one stated earlier you would be entitled to the deposit should you take it to small claims court. possibly first months rent as well depending on when they backed out, but since you had no lease signed i think you would be hard pressed to get this.

yah you turned away other "potential" tenants but thats what a non-refundable deposit is for so I wouldn't expect anything for this.

 

[ecmst12]

Verbal agreements are always month to month.

 

[latigo]

Verbal agreements are always month to month.

Well, that is most interesting to know. However . . .

If every agreement leasing land is limited to a month-to-month tenancy, unless in writing - as you have so "authoritatively" announced - then what purpose was there in the State of Michigan (or any of the other 49 states) in enacting a statute of frauds that provides:

“Every contract for the leasing for a longer period than 1 year, or for the sale of any lands, or any interest in lands, shall be void, unless the contract, or some note or memorandum thereof be in writing, and signed by the party by whom the lease or sale is to be made. [Michigan Compiled Laws 566.108; MSA 26.908.]”

(As cited by the Michigan Court of Appeals in the 1999 case of Ragheb, et al vs. City Center Physicians, P.C., et al. Case No. 203100 Oakland Circuit Court.) *

Wouldn’t it seem superfluous and unnecessary for the various state legislatures to include such a provision in their statutes of fraud if every verbal lease of land is restricted to a tenancy at will?

Or should they have declared that every contact for the leasing of land for more than one month is void unless written and signed?
______________________

I suppose you have some authority to support your statement. Other than some notes you may have taken in your 2-day seminar on how to become an insurance adjuster.

If you care to have someone read and explain to you the Michigan court’s decision on facts closely paralleling the OP’s post, here’s a link http://www.jstor.org/stable/3304750

 

[Searchertwin]

In regards to my damages....I turned away other qualified tenants that were interested in the property. I have lost a month and a half of "marketing" time because the property has been off the market since I accepted the check. At the very least I would want the deposit amount, however I don't think asking for one month's rent would be excessive....given the lost rent that them backing out will cause me.

In the event a tenant breaks a written lease, by law they are to pay me rent until the unit is re-rented or the lease expires. I have some friends who have been renting for 20+ years and laugh at this because they have never been succesful at convincing a judge to grant a judgement based on this.

You have to stop and realize that when one ask "what damages" then they are probably renters and not LL. They don't seem to realize that a mortgage has to be met and if a LL has someone to rent the place they put hold on everything else for that person. And usually a week to two weeks have passed and they change their mind and now the LL is out of luck and has to start fresh...getting one place rented with good renters take time and they don't seem to understand that. You are entitled to one months rent from them. Keep the check it is a contract as sandyclaus stated. If the shoe was on the other foot, it would be a different story.