Episode 95: 2 of 3 When A Tenant Gives Notice
Summary
When a tenant gives notice - AFTER you stop panicking - what do you do next? Did they actually give you PROPER notice to depart? How do you know? In today's show, we talk about the who, what, when, where, why, how and how much all regarding a tenant's notice to depart. In the second episode on a three-part series all about tenant transitions, this show highlights some of our secrets in the tenant's departure date, early-termination fees, and making sure you are following your local area's rules regarding a tenant's notice and returning all or some of the security deposit.
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This Week’s Blog Post:
Welcome back to My Life as a Landlord. I'm Dr. Jennifer Salisbury, and today we're diving into the crucial topic of what to do when a tenant gives notice. This is the second episode in our three-part series on tenant transitions. Last week, we discussed marketing your rental units, and today, we'll cover the steps you need to take when a tenant decides to move out.
Understanding Proper Notice
When a tenant gives notice, the first thing to determine is whether it’s been done properly. Notice can come in various forms—text, email, or a formal letter. It’s essential that the notice comes from someone authorized on the lease. As a landlord, you must be familiar with your local housing codes or tenancy acts to understand what constitutes proper notice. This varies by location, so it's crucial to know the rules that apply to your rental properties.
Timing and Lease Obligations
The timing of the notice is another critical factor. Some regions require a full calendar month's notice, while others might only need 30 days. Understanding these timeframes helps you manage the transition smoothly. If a tenant is breaking the lease, there should be clear terms in the lease agreement regarding early termination fees. If these aren't specified, it can complicate the process, so always ensure your leases are comprehensive.
Handling Departures and Financials
When a tenant decides to leave, it’s important to understand why. While this information might not be included in the formal notice, it can provide valuable insights. Common reasons include purchasing a home, job changes, or family obligations. Additionally, you need to assess any financial obligations, such as outstanding rent or potential damages exceeding the security deposit. Knowing your local regulations on handling security deposits and damages is essential to navigate this process legally and efficiently.
The Critical Date of Departure
One of the most vital pieces of information you need is the actual date of departure. This is not necessarily the last day they've paid rent for but the day they will vacate the property. This date is crucial for planning your marketing strategy for new tenants. It allows you to set realistic timelines for cleaning, repairs, and showing the unit to prospective tenants. Having a clear understanding of this date helps ensure a smooth transition between tenants.
Preparing for the Next Tenant
Finally, use the transition period to prepare for the next tenant. Ensure your property is in top condition by conducting thorough inspections and addressing any necessary repairs. Take updated photos of the unit when it's vacant to enhance your marketing efforts. Having a template ready for each unit can streamline the process, making it easier to attract and secure new tenants quickly.
Thank you for joining me in this episode of My Life as a Landlord. Understanding the nuances of tenant departures is key to maintaining a successful rental business. Stay tuned for the final episode in this series, where we'll explore renting to roommates. Until next time, continue to educate yourself and thrive as a landlord!