Filling in a vacancy can be a challenging job for a landlord. You have to go through a lot of steps before a tenant moves in. First, you have to make sure the property is in good condition. Even though Padleads has made marketing easier for you by letting you create property listings and syndicate it to popular rental websites, you still need to go through to a more tedious process once applicants start reaching out.
There are tenant screenings, background checks, information verification, comparing applicants, choosing a tenant, and finally signing the lease agreement. There is nothing like feeling the satisfaction of filling in a vacancy. You can relax for a bit and focus on managing the property after the new tenant moves in. But what if they did not move in after getting approved?
I bet you never thought it would be possible, but it is. Some landlords have experienced this, and there is no telling it will not happen to you too. You might be unsure of what to do for these types of rare cases. Should you continue asking for rent? What happens to the unoccupied property? Let us answer those questions.
The best thing to do is to be prepared for situations when tenants did not move in on the agreed-upon date.
1. Make sure that they did not, indeed, move in.
The first thing to do is to seek confirmation that the tenant did not move in. Sometimes you might think that they did not, but they did. It is just that they did not make a big deal out of it. They may also not have a lot of belongings to bring.
The question is, were the keys given to them on or before the move-in date? If yes, they are considered moved-in. All the terms and conditions will now be applicable.
If they have not taken the keys and are delaying the process of moving in, you can proceed to the next step.
2. Try to reach the tenant.
If you have not yet contacted the tenant, this is the first thing to do. Ask them directly of their plans of moving in and if they cannot give you a specific answer, ask them if they are still going to continue paying rent.
Some will tell you outright that they changed their minds while some will guarantee that they will continue paying rent and will move in on their own time.
The only way to confirm if the tenant will continue with their rental is to hear it directly from them. Never assume anything unless they made it clear that they are canceling the lease.
3. Decide to break the lease.
If the tenant decides that he will not go on with the rental, the solution for that would be to break the lease agreement, or else one of you will face financial loss. If one of you violates the contract, it will be rendered null and void. Here are some examples:
· The tenant decides to stop the lease
The first thing to do is to advise them to hand in a 30-day notice because it is the required period to end a lease. The tenant will still be responsible for the lease even if they have given due notice, and you should remind them of that. Also, inform them that you are going to find a replacement immediately.
· The tenant did not continue to pay rent
Not paying rent is a violation of the contract. If the tenant has failed to give a concrete plan on their rental and failed to pay rent on the due date, you may now start with the eviction process. Just make sure that you have contacted them and have done everything to convince them to move in.
4. Hold on to the security deposit.
What happens to the security deposit? A landlord may keep the security deposit for its intended purpose. You can make deductions to cover the unpaid rent of the tenant and return the excess amount to them after. Remember to follow the allowed number of days to return the remaining security deposit to the tenant.
5. Find a new renter ASAP.
Once the tenant confirms that he will not be continuing their rental, it is time to look for new renters. You may have to go back to square one, but that is how you avoid a financial setback. You could also try to reach out to the other qualified applicants who responded to your Padleads listing.
Sometimes our plans do not go the way we want them to, and that is just one of the challenges that life throws at us. The good thing is, it is possible to overcome them. Just take it one step at a time.