Changing from lease to month to month agreement : ezLandlordForms

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Trudy W

started a topic almost 12 years ago

I have rental property in Ohio and currently the tenants are on a one year lease, however i am putting my property on the market to sale (in lease) and I want to change from a yearly lease to a month to month agreement. Can that be done? And also can I increase the rent if i am able to go to the month to month agreement? The current lease will expire on August 5th 2012 (August 5, 2011 is when they took possession).

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Bob R

said almost 12 years ago

Only if tenants agrees. Would you as a tenant agree to switch to a month-to-month and have your rent increased? Is there a problem keeping renters during the sale? Your rental agreement should have a clause allowing you to sell/show the property. The new buyer has to accept the tenants. You will also have to give buyer the sec.dpst you rec’d. Are there work-a-rounds to possibly help with the sales? Sure there are. But it doesn’t look like you would be interested in them since you’re thinking about raising the rent and the work-a-round will cut into your (possible) profit ------- Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with this EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance.

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Larry &

said over 11 years ago

I rented a house to 3 young men a year ago. The lease reverted to a month to month at the end of the lease. I need to refund the security deposit but have a problem and am not sure how to handle. Two boys on the lease have moved out and the last boy wants to renew lease with 2 other people now. The final walk thru was only attended by the one boy wanting to stay. He claims the other 2 boys said the security depost can stay with him on the house. I informed him to get that in writing or have them come to the final inspection or contact me. I tried to contact the other 2 boys and inform them of the final inspection date but was not able to locate them. (They also did not give me notice of their intent to move out) The boy wanting to stay came to the inspection. He also signed the the final inspection report. The balance of the security deposit being returned, does it have to be made payable to all 3 boys with the word AND between their names or can it be payable to the 3 boys using OR between their names?

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Bob R

said over 11 years ago

Lois....Let’s take this one step at a time. Do you have a separate contract (one for each tenant) or is there just one contract containing all names? Do you receive one check for the rent or is each renter responsible to pay their portion of the rent? Did each tenant give you a sec.dpst for was it one check?

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Larry &

said over 11 years ago

Bob, Thanks you for your quick response. I have one lease contract containing all three boys they signed. They do not pay by check, they pay always with cash.. They do not have a car.. so we always have to call them on rent day and arrange to pick up the rent. One receipt is made with the three boys named on it. We never know which one will be home so that is how we make the receipt. (We figured the lease is written containing all three names so the receipt should be also. ) We informed them at the begining of the lease we dont care who pays what and that is between them. We told them they all were responsible. (of course we know they split it but when we receive it it is the entire amount. As for the security deposit. It was collected as one deposit listing all three of them making no distinction between who paid how much. We deducted the damages for the security deposit ans need to return the balance. The boy staying wants the balance applied to the new lease and said he would make up difference needed for the new lease.

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Dawn A

said over 11 years ago

When you return a security deposit, write it out to all 3... they can split as needed and the one staying can keep his portion and give it back to you with a new security deposit.

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Bob R

said over 11 years ago

Hopefully, your contract states that each tenant is responsible for the full amount even if any one tenant doesn’t pay their share. I agree that you should only receive 1 check for the full amount vs individual checks. Since you don’t know how much sec.dpst each tenant contributed, I would leave that up to the remaining tenant to refund the amount due the other tenants. There is no way for you to determine which tenant caused the damage. That’s something they have to work out, not you. However, you need to do an inspection and give the remaining tenant a Disbursement of Security Deposit statement showing the deductions, if any. The deducted amount needs to be replaced ASAP if you are allowing the remaining tenant to remain on the property. You must also have the repairs done. I disagree with Dawn. There is no reason for you to write them a check if you are allowing the remaining tenant to continue renting your property. Also, assuming that your agreement states that each tenant is responsible for the full rent amount, the remaining tenant is obligated to pay the full amount of rent due. If he has not, let me know. ---- Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance.

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Larry &

said over 11 years ago

Dawn, Thanks for your input. You think a check payable to: Boy 1 , Boy 2 and Boy 3 for the return of the security deposit or make it payable to Boy 1 or Boy 2 or Boy 3. The reason I ask is the banks have a policy on the wording on a cheque. ie: "And, or "Or" meaning in the case of "And" all three must sign and in the case of "Or" all may sign but only one is required when cashing the cheque. Since I do not know where the other 2 boys are and only know where the 1 boy is should it be mailed to the address last known for the 3 boys (the rental house) or given to the 1 boy still in the rental house. The remaining boy at the rental wants to just sign it back to us along with the balance needed for the new lease. (None of the 3 Boys have a bank account.) He has already moved 2 people in that want to rent the house with him. We were not aware he had done that

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Larry &

said over 11 years ago

Bob, We already have done a final walk through with the boy that is wanting to continue renting the house. He signed the inspection report and agreed to the damages needing repaired. We have completed the repairs and now need to send the Statement Itemizing Reasons for Retention of Security Deposit along with the copy of receipts and refund the balance of the Security Deposit. Please see my response to Dawn.

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Bob R

said over 11 years ago

Are you saying that you now have the remaining tenant in the property without the total sec.dpst that you require?