Crazy Tenant Situation

[SteffanWatson]

We have 3 tenants in a townhouse together on a signed lease for one year. Tenant # 1 initiates a fist fight and puts tenant # 2 in the hospital (black eyes and bloody lip). Tenant # 2 calls the police and a restraining order is put on tenant # 1. A court date is set for late October.

Since tenant # 1 cannot live in the property until the legal issues are settled, what happens with future rent payment (they were dividing it three ways) and the future of the lease agreement? I don`t see how these tenants can continue to live together.

 

[ChrisDavies]

Depends on your location, as tenancy laws vary. What I`d suggest as the simplest course of action; tenant #1`s lease is ended at the end of the next calendar month, or the shortest reasonable term in which you can re-rent the suite. If #1 raises a stink, in Edmonton, go straight to RTDRS. Physical assault is grounds for 48 hour termination; toss them, and the court will determine how much you can collect. In most cases, is as I outlined above, as soon as you can reasonably rent it out again. Be reasonable, give them time to move, and for you to get it re-rented.

Be prepared to let this month`s rent go if it means getting #1 out without any injury to other people or the premises, and get a new tenant in to restore cash-flow.

 

[CarlaJohnson]

I wish the best for you to get #1 out and off the lease quickly, but these things often drag on.

They sound like a "vibrant" lot. The group signed an agreement to pay you rent. I don`t believe that has changed. They are all obligated to pay you what they agreed to in the lease. #2 & #3 better get their act together. If full rent is not paid, initiate eviction of all of them immediately.

If the police impounded someone`s car for drug possession, that person would still have to make their car payment.

The best of luck to you.

Carla

 

[invst4profit]

Carla is correct.
The question is do you have one lease or three leases. If there is only one lease even though they may be dividing the rent three ways you are still owed the entire amount if any remain in the unit or until you rent to someone else. One lease means they figure out who pays what amount not you.
Three leases means you have to chase the guy not living there for his rent.

 

[Nir]

Carla`s car example is a good one. is there a possibility to charge tenant #2 & #3 50% more after #1 is leaving either based on the contract or by asking them if they need more space/another room? if not, just ensure #1 is out and bring a new tenant ASAP, hopefully someone who is less into fist fights than #1. good luck.

 

[SteffanWatson]

My lawyer mentioned a "frustrated contract". Which means since tenant # 1 is unable to live in the house due to a restraining order the contract (lease) is impossible to be honoured. any legal knowledge out there?

thanks everyone for your insight.

i have another tenant that would like to move in. as it turns out the new tenant and the existing tenant would rather live with the guy who beat up the victim rather than the victim. apparently the victim ducked out on his utility payments in their previous place.

as Don says, due diligence on my part (better tenant screening) could have prevented this.

lesson learned