When leasing out a residential property, the US Department of Housing and Urban Development (DHUD) requires you to sign a legal lease agreement with the tenant. This document outlines the terms of the rental agreement such as the period of the lease and the monthly rates. Usually, the tenant either renews the lease or vacates the property once the lease period expires. However, in some cases, the tenant can breach the rental agreement by either failing to pay rent or breaking the lease. While this can result from genuine cases such as an unsafe living environment or discrimination, some tenants may break their lease fully aware of the affiliated consequences. With that in mind, here are some ideas for what to do when a tenant breaches the rental agreement.
Seek Legal Advice On How To Recoup Lost Rent
Since the federal housing laws bind the lease agreement, any breach should usually attract legal implications. Therefore, you can take the case to court in case of breach of contract. To be on the safe side, ensure you follow all the legal rules and regulations and find an attorney who can help you do so. If the tenant breaks the lease without paying the rent, you can send them a reminder of their obligation. Normally, a good tenant will respond by either paying the arrears or discussing with you the way forward. If they refuse to pay, federal housing laws usually will permit you to sue them.
Tenant Eviction
When you sign a rental agreement with your tenant, both of you expect that each party will abide by all the terms in the lease contract. However, if the tenant decides to breach the contract, you have the right to evict them from your property. Even so, this should depend on the circumstances and the legal issues surrounding the breach. For example, the Center for Disease Control and Prevention issued a moratorium barring landlords from evicting tenants due to unpaid rent during the COVID-19 pandemic, as published in the Wall Street Journal (WSJ). This means that if your tenant fails to pay rent during the moratorium, you may not be allowed to evict him/her. Nevertheless, the reasons for not paying rent should correspond with those stipulated in the moratorium.
Settle Amicably
Depending on the reason for the breach of the rental agreement, you can consider resolving the issue with your tenant out of court. If it goes well, the tenant can decide to continue living in your property, especially if you are in the wrong. For instance, if your rental property is inhabitable for the tenant, you can conduct some repairs and improve the safety standards. This way, the tenant can reconsider their decision to vacate the premises before the expiry of the lease. Additionally, most tenants would prefer out-of-court settlements since court records lower their chances of being accepted in other rental units.
Conclusion
When a tenant breaches the rental agreement, there are several things you can do. However, if you decide to take legal action, such as sue or evict the tenant, make sure you follow the legal processes so you don’t break any federal housing laws in the process.
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