June 21, 2019 at 9:57 am #167240
Looking for landlord or renter input based on experience here. I am about to close on my home and will need to rent a home while my wife and I finalize our next residence. We are willing to accept what appears to be the standard minimum 12 month rental but I cannot seem to find anyone willing to accept a contingency contract – specifically, allow for the remote possibility that our closing does not occur.
My hope and expectation would be that my wife and I can commit to a rental contract after due diligence is completed on our home but before closing so we have somewhere to move the day of closing. So far, we’ve been told we would be committed to the full 12 months of rent with no option for a contingency. At a minimum, I would expect an option to pay some penalty if, for some reason, our closing does not go through but to not be liable for the entire 12 months of rent.
Am I missing something here or is there really no way to handle the contingency of a closing not completing?
Any input appreciated.June 21, 2019 at 9:58 am #167241
Probably because the Q is immaterial to them and their operating model.
The pertinant Q is what their early termination terms/fees add up to.
They’re counting on you to book in and pay for a full year even if you can be out in 62 days.June 21, 2019 at 9:59 am #167242
Some things you might do:
*Take a month’s lease on a storage place the day you close and move your stuff in there and rent an Airbnb for a couple of weeks while you look for move stable rental situation
*Put a deposit down on an apartment with your projected move in date and if it doesn’t happen be prepared to lose your deposit
*Commit to a month to month lease and be prepared to lose the first month’s rent if you don’t close. More likely, you’d just close late and might move into the M2M a few days late.June 21, 2019 at 9:59 am #167243
All my leases have a 2-month lease termination fee. That would work for you. It’s like an option that you have to purchase to get out of the lease.June 21, 2019 at 10:00 am #167244
Why on earth would I hold a house for you for, how long is your escrow? 30 days? 60 days? Just in case you might want it or maybe you won’t want it. No way to know for sure.
Oh, but after you are in, you are buying something else, so you don’t intend to stay. Or “finalize your next residence”, so maybe you are already in escrow for your replacement house?
No thanks. I have plenty of applicants who are willing to start paying rent immediately and who are willing to commit to stay.
Find yourself a short term vacation rental to move into while you finalize your next housing purchase.June 21, 2019 at 10:00 am #167245
OP, yes, you can write a contract any way you want, regarding how long the contract is for. You would still be under laws that say, for instance, how long you must give a resident before they can be required to move out. Those laws wouldn’t change. I’m not aware of any state laws that say you must rent a unit for any specified period of time.
So, for instance, let’s say you advertise your unit for sale the normal way, and say that the rental will be for a guaranteed 4 months, and maybe longer, depending on the sale of the unit. Then, on the 15th of some month, you realize your rental has been sold…you then give the required number of days to the tenant.June 21, 2019 at 10:00 am #167246
I don’t get your point,. He’s not writing a contract, he wants someone to hold an apartment for him in case his house doesn’t close or in case he decides he doesn’t want to stay 12 months.
I would say to the OP you’d have to find a stupid or desperate LL to put up with this, it’s all risks and downsides to them.
What you can offer is 2 months rent guaranteed up front starting on your expected closing date and then read your contract and ask if you can get out after 2 months.
It’s also rare that they can get another person there on the 1st so for the new tenant that may also make them lose an extra month of they do you a favor. No one wants revolving tenants. In some places they don’t allow a short term tenants, so you would have to break the lease. Also I don’t know how the rule works but I’ve also read that short term rentals tax the income differently and higher than a 12 month lease.
It’s all downsides for the LL and upsides for you so why exactly would they do this? Tough it out with friends or family or live in an extended stay motel for a while and put things in storage.
Once I wanted to move from one apartment to another 2 blocks from the beach, I did not want to commit to 30 days notice until the other one was secure so I had to pay an extra month rent. The only good thing was that I could take my times moving stuff and cleaning.
Where i was living before and I wanted to buy a house that fell thru due to low appraisal, I left I had to end my lease at a certain time and had to scramble and live with friends for a few days and then found something else. Life is hard, make sacrifices and have money to back you up.June 21, 2019 at 10:00 am #167247
I had such situation come up for me. A applicant was selling their house and needed a place to rent while looking for another home. I was willing to do it provided
1. They pay a additional $400 a month on a month to month. $200 additional of yearly.
2. They pay rent payment amount in advance one month
3. Pay two months amount early termination on a yearly contract. If they want month to month that was fine with 60 day notice.
4. Deposit 3x rent amount and first two months due
They offered a extra hundred bucks a month on a month to month because “they weren’t planning on being there long”. Ok that’s fine but I’m not going to go out of my way to a comodate you. You want such short stay put your stuff in storage and go get a hotel room. . I told them that I would still need to repaint clean and repair regardless of the amount of time and that puts my rental on a downtime again.
Needless to say we went out separate ways.
I don’t have a problem making a off the wall deal but I’m gonna make sure that I’m not going to lose my butt doing it. If it doesn’t happen it doesn’t happen and I’m ok with that.
The reason I asked such exorbitant fees is because the unit will just be a way station. They are not going to give two craps about destroying it so it needs to be worth my while to rent for such short time. If they leave the place immaculate they would get their deposit back and if they keep the lease to term there are no penalties so all there is to pay is the additional higher monthly rentJune 21, 2019 at 10:01 am #167248
Wow, you’re right LOL. I guess I was tired and didn’t really read the post.June 23, 2019 at 11:55 am #169462
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