How Would You Handle These Tenants?

[ClintL]

I inherited a couple as tenants in a Hamilton triplex back in September - they have already been there for 4 years and apparently have always paid rent on time via post dated cheques. However, the previous landlord never bothered to raise rents and therefore these tenants enjoyed $800 rent per month for 4 years.



When I took over, I had them sign a new lease with me where I granted them the same $800 rate from October to December 2012 and then to $820 from January 2013. Their last months rent deposit was carried over from the sellers to me via the adjustments during the closing of the property - the tenants gave me an extra $20 at the time of signing of the new lease with me to increase the last months rent deposit.



They had just separately informed me that they had a major breakup. The lady had moved out earlier this month and wanted to be released from the lease - she was also the one who provided the post dated rent cheques. She thought that her former partner was to keep the apartment.



The man just emailed me and informed me that he will also not be staying and will be vacating by the end of this month (March). He cited medical emotional reasons as a result of the breakup to ask me for leniancy and release him from the lease as well - I already know that the relationship business between the two of them is none of my business.



Here's what I'm thinking of doing given that I could do a bit of renovations and rent out the unit for $900 or more at market rates. If they vacate the unit with all of their belongings out with no major damage and return all keys by the end of this month, I will;



- keep the last months rent deposit

- return the post dated cheques April to Dec/13 to the lady

- write them each a letter to release both of them from the lease



If they end up vacating sometime in April, even if during the first week;



- keep the last months rent deposit

- return the post dated cheques May to Dec/13 to the lady

- write them each a letter to release both of them from the lease

- deposit the April rent cheque - I'm sure the lady will want to get the guy to reimburse her but I'll let them sort that out



I figure that this will hopefully be the best way so that each party including myself, will come out of this relatively unscathed. I may lose a month's rent but after renos, will be able to bring the rent back up to market rate.



What do you all think? Should I do anything different?

 

[housingrental]

Standard option:



Tell them they owe rent until end of May 2013 (assuming the lease term has already ended).

You will try to re-rent sooner if they want.

They are responsible for rent payment until it is rented (the earlier of time it rents or end of May).

Apply last month rent deposit to May if not rented sooner.

Give back remainder of cheques.

Notify them of the above in writting.

Document every ad / viewing in detail.



Other option:

Be happy to get them out sooner if it's to your benefit (re reon's, higher rent) and give them a release of their contract sooner than May 2013.

 

[Thomas Beyer]

Good insight here by Adam.

 

[housingrental]

Thank you for the kind thoughts Thomas

 

[invst4profit]

Adam is on the money. I would be doing as he suggested.

Send each of them a copy of the LTB N9 form to fill out and return to you (May 31 as the termination date). Once you receive it back send them each a letter releasing them from their lease. This should get you to April 1 and allow you to cash the April check before they place a stop payment on it.

 

[ClintL]

Thanks everyone! I like the suggestions here better than my original plan.