Tenant leaving with 9 months left on lease

kisaglasier

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#1
I have some tenants who are breaking their agreement and leaving after only 3 months, they signed a 12 month lease. One of the 3 tenant`s Mom has cancer and she is going back to BC to be with her and the other 2 cannot afford it without her. They have been very good about notifying me and staying until I found someone new. Their damage deposit was put into an account which earns 3.5% and is paid yearly. Should I be paying them the $7.51 interest or should I just give them their deposit back? Can I charge them for the advertising costs and extra cost to me to find new tenants?
 

DonCampbell

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#2
Hi,

There are strict rules to Security Deposits and the differ from each province. This year in Alberta you don`t have to pay any interest upon return of Security Deposit (this is set every year by the government), in other provinces there is a set interest that you must pay. You can get the actual amounts at the local "Landlord & Tenant" boards.

Let`s wish the one tenant`s Mom all the luck!
 

timk519

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#3
QUOTE (kisaglasier @ Oct 12 2007, 01:57 PM) Can I charge them for the advertising costs and extra cost to me to find new tenants? Another question to toss into the mix is goodwill and reputation in the marketplace. Regardless of whether you`re in the right to try and recover those costs, you can`t buy a reputation for being a good person / company to deal with when bad things happen for the amount of time and money you`ve spent to find new tenants.

It sounds like they`re good people that got caught in an impossible situation, and did the best they could to take responsibility for their obligations as far they could afford. Personally, I`d write it off and move on.
 

kisaglasier

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#4
QUOTE (DonCampbell @ Oct 12 2007, 11:46 PM) Hi,

There are strict rules to Security Deposits and the differ from each province. This year in Alberta you don`t have to pay any interest upon return of Security Deposit (this is set every year by the government), in other provinces there is a set interest that you must pay. You can get the actual amounts at the local "Landlord & Tenant" boards.

Let`s wish the one tenant`s Mom all the luck!


Thank you for your input - I`m dealing with a Jv partner who feels we should try to get every cent out of the tenants. You`re comment about the tenant`s Mom reminds me it is all about helping people and the money earned is a bonus. Thanks again.
 

kisaglasier

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#5
QUOTE (timk519 @ Oct 13 2007, 10:16 AM) Another question to toss into the mix is goodwill and reputation in the marketplace. Regardless of whether you`re in the right to try and recover those costs, you can`t buy a reputation for being a good person / company to deal with when bad things happen for the amount of time and money you`ve spent to find new tenants.

It sounds like they`re good people that got caught in an impossible situation, and did the best they could to take responsibility for their obligations as far they could afford. Personally, I`d write it off and move on.


Thank you for your input. My gut feeling was telling me to just chalk it up to an experience. It is great to get your response and it is likely good experience for me to have to screen more tenants. I think the tenants are good people, they are just young and caught in a uncontrolable situation. Thanks again for you input.