When to reduce rent for Broken Lease?

[Mhami]

Hi there,

Is HomeGuru still around? Anyway, I see Cvillecpm has joined the crew in answering questions. I alway think Cvillecpm has good advise also.

Anyway my question. I have a condo in CA that I rent out. My tenant is breaking the lease. I have an ad in the paper to re-rent it at the same price she was paying, but I am not receiving any phone calls. How long should I give this ad before I reduce the rent?

Also, is there such a thing as a disclosure law for renting a condo? For instance, if the person that lives above the unit is unusually loud, is it my responsiblity to disclose this information. My tenant said that she is leaving the lease because two reasons, the lady that lives above her is too loud and secondly my tenant got laid off of work. When I was discussing with her the costs that she is incurring by breaking the lease she threatened me with the fact that I did not disclose the fact that there is a loud person above her so she is not responsible for rent once she leaves. For instance, the lady upstairs was vacuuming at 8:00 am this morning while she was trying to sleep in.

Thanks for the advice.

Marianne

 

[dj1]

Your tenants are trying to stiff you vaccuming at 8 am is not that early......6 AM is early!

She is responsible till you re rent AND if you rent it for less she is responsible for the difference, till the end of the lease.

Explain to her that a lease works both ways, who ever beaks it has to pay a penalty. And you didnt break the lease.

 

[Mhami]

Thanks dj1, I agree with you completely. How long should I wait until I lower the rent due to lack of response? I have not run into this problem before. I suppose I need to weigh out the cost of the advertising verses the rent I (or should I say she) will lose if I lower the price. I know she is responsible for the difference until the end of the lease term, but since it is my job to re-rent as soon as possible does that mean lowering the rent? And if so, how long is it considered reasonable to try for the same amount? The rent I am asking is in the middle range of others in the same area. I am not asking an unreasonable amount. However, I am located in the San Francisco Bay Area and many people have lost their jobs.

Thanks,

Marianne

 

[dj1]

I would say start immediately.....you know she doesnt have a job, and it will be a whiule for her to get one, you need the place rented the day after she leaves.

And truthfully, you made a nice chunk of money the last 2-3 years, so now you have to lower it to pre dot com prices.

I cant see a judge forcing a tenant to pay the difference from say $2200 rent when you can only rent it now for $1200.

legally yes but morally no, if you hadnt jacked up the rent so much she might have still afforded the old rent.

 

[Mhami]

I would say start immediately.....you know she doesnt have a job, and it will be a whiule for her to get one, you need the place rented the day after she leaves.

Point taken. In fact, she has two jobs to make up for the one she lost. Unfortunatly, the two don't compensate for the one she lost.

And truthfully, you made a nice chunk of money the last 2-3 years, so now you have to lower it to pre dot com prices.

I actually didn't make a nice chunk of money for the last 2-3 years. I only raised my rent to be more in line with the going rates in September 2000, eight (8) months ago.

I cant see a judge forcing a tenant to pay the difference from say $2200 rent when you can only rent it now for $1200.
legally yes but morally no, if you hadnt jacked up the rent so much she might have still afforded the old rent.

I said San Francisco Bay Area not San Francisco. I am not even making $1200 now even though I know of one unit for rent in the same complex where they are asking $1250 and one that just rented recently for $1225. I am asking $1150 and will probably lower it to $1100 or $1050. Sure, she probably could afford the old rent, but then again that really isn't the going rate these days.


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[dj1]

Well its your choice YOU are the landlord....

Can she afford $1050, or do you want to maybe have it empty 2 months and sue her and try and collect a judgement?

You are the boss its YOUR deceision..

Ok i am a tenant but i would opt for the $1050 and at least she will work harder to keep her two jobs....and hopefully the rent will be there every month..

its not easy being a landlord, thats why i try and be as nice and honest as i can be to them.

But when facing eviction or being broke, she got upset and looked for any excuse to leave and break the lease...and NOW that she is on a crazy work schedule to make enough money to pay the rent, vacuuming at 8 am is to her unreasonable if she got in at 2 am from work.

thats just normal behavior.

[Edited by dj1 on 05-26-2001 at 07:43 PM]

 

[Mhami]

Somehow I think this conversation took a left turn somewhere along the way.

I am not trying to be unreasonable. I am a sucker for niceness. I want what is best for my tenant, just as I would want what was best for me if I were in her shoes. I also know that this is a business transaction and should be treated professionally. As such I need to consider my needs as well. If she said to me that she was happy living there but could not afford the rent, perhaps I would have reduced the rent. However, that was not the case. She is not happy living there, plus she is now going to share rent with a roommate and her new rent will be almost half the cost.

With all that being said, I was just trying to get the opinion of other professionals on how long they would hold out to get the same amount of rent. It has rented so fast in the past that one or two weeks in the paper seems like a long time to me. Maybe I am short changing myself.

Marianne

 

[dj1]

Yes maybe it took a wrong turn...but in the end when the market is hot here in NYC it would be gone the next day.

But now in SF area maybe a month to rent it at YOUR price.

If a tenant doesnt look like they are going to sign a lease, why not ask is there someplace better or cheaper they were looking at, and maybe offer $50 less if they sign right now.

Have you added any NEW Insulation or energy efficient appliances in the last year or two? new paint job, maybe new energy efficient lighting? to make your place cheaper now that the electric bills are going to skyrocket next month.

 

[Mhami]

Have you added any NEW Insulation or energy efficient appliances in the last year or two? new paint job, maybe new energy efficient lighting? to make your place cheaper now that the electric bills are going to skyrocket next month.

Now, I know that you have got to be Peter, right? I remember you from awhile back on this same board. That's okay, you don't have to admit to it if you don't want to .

No, I have not added any new efficient energy saving lighting. It does have a fairly new paint job and with all the extra money I was making on rent (yeah right) I added new carpeting that took up three months worth of my income (after all other expense were paid, mortgage, HOA dues, etc.). I don't know how a new paint job applies to reducing the electricity bills though. Luckily the place stays cool during the summer because the other surrounding units insulate it.

Thanks for your input.

Marianne