topic Re: Breaking a lease - into collection??? in Rebuilding Your Credit

Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 15:08:08 GMT

Hi all, I'm unfortunately going to have to break a lease with five more months remaining @ $820/month. I gave written notice and listed good reasons for having to break my lease (not reasons for breaking listed in lease agreement, of course). I currently have an excellent credit score of 788 on both myFico and Equifax reports ... how much will not paying this remaining rent hurt my credit score if it's turned over to a collection agency and reported? I simply cannot afford to pay this rent on top of my other bills ... and depending upon assistance from my mother (in failing physical and mental health, one of the reasons I must break my lease) is really not an option I'd prefer to follow through with! Thanks in advance for any replies, suggestions, answers ... ahiuan

Re: Breaking a lease - into collection???

GregB — Sun, 03 Feb 2013 15:24:02 GMT

You will probably be better off if you work with them to make sure the property is completely ready to lease when you leave and do what you can so that they may lease it ASAP. You will only be responsible for their loss of rent and costs so try to make sure it is unleased for as short a time as possible. Hopefully, that amount will be something you can manage to pay.

IF you don't pay the correct amount and IF they turn it over to collection, then it would damage your credit heavily. IF it then becomes a Judgement, it would damage it more. Each damage would be 50-100 points.

Re: Breaking a lease - into collection???

StartingOver10 — Sun, 03 Feb 2013 15:27:55 GMT

It depends upon the landlord. Many landlords will take you to court and get a judgment against you for the remaining balance due on the lease. Check your state's statutes to see if they landlord has to actively market the property to mitigate their loss. Some landlords will then actually go for an eviction process, even if you are out, in order to "poisen" your report.

Have you considered talking with the landlord to see if you can bring in someone else to take over your lease? Or to work out some agreement where you pay $X for a lease termination? Try to work out a solution where you are not left with a huge mess to clean up in the future with a collection, judgment or eviction record. Whatever you are able to work out, make sure to get it in writing from the landlord for your protection.

Re: Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 15:31:28 GMT

Hi GregB, and thanks,

The park (mobile home park) representative has already said they will attempt to re-lease it as quickly as possible. Two problems ... first, there are another six mobile homes available for lease in the park at present and second (and the bigger problem) is that the roof on the home needs replacing (it's been tarped over for about 2-3 weeks). These people seem to enjoy making tenants wait for needed repairs! :/

Re: Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 15:36:41 GMT

Hi StartingOver10, and thank you for your reply also. Good ideas and I'll look into them. I have already told the landlord (office) that they may begin showing it *now* for re-leasing. Still, there remains the problem of the roof needing replacement ... not an easy sell for *any* potential tenant, I would think ... :/

Re: Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 15:46:15 GMT

I agree. Carefully look over the Landlord/Tenant laws for your state. Most do not allow for a tenant not to pay rent due to repairs needing done but, many do have clauses stating if because the repair has not been done you can use that as a reason to move out.

In most states, there is also clauses that will tell you how long a landlord has to take action on a non-emergency repair. If they haven't abided by these, you probably have a case against them.

Re: Breaking a lease - into collection???

mmmlive1999 — Sun, 03 Feb 2013 19:11:39 GMT

@Anonymous wrote:
I agree. Carefully look over the Landlord/Tenant laws for your state. Most do not allow for a tenant not to pay rent due to repairs needing done but, many do have clauses stating if because the repair has not been done you can use that as a reason to move out.

In most states, there is also clauses that will tell you how long a landlord has to take action on a non-emergency repair. If they haven't abided by these, you probably have a case against them.

What you are talking about is called constructive eviction. But there are rules around breaking a lease are very strict and involve the tenant having to have a record of complaining about said issue that is making the home uninhabitable. Check your with your city housing authority. But just not paying rent doesn't work.

Re: Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 19:31:41 GMT

@mmmlive1999 wrote:
@Anonymous wrote:
I agree. Carefully look over the Landlord/Tenant laws for your state. Most do not allow for a tenant not to pay rent due to repairs needing done but, many do have clauses stating if because the repair has not been done you can use that as a reason to move out.

In most states, there is also clauses that will tell you how long a landlord has to take action on a non-emergency repair. If they haven't abided by these, you probably have a case against them.
What you are talking about is called constructive eviction. But there are rules around breaking a lease are very strict and involve the tenant having to have a record of complaining about said issue that is making the home uninhabitable. Check your with your city housing authority. But just not paying rent doesn't work.

I don't think I implied for the OP not to pay their rent.

The rest of it depends on what state and/or city you live in. That is why I suggested they look at the Landlord/Tenant laws.

Re: Breaking a lease - into collection???

mmmlive1999 — Sun, 03 Feb 2013 23:38:01 GMT

@Anonymous wrote:
@mmmlive1999 wrote:
@Anonymous wrote:
I agree. Carefully look over the Landlord/Tenant laws for your state. Most do not allow for a tenant not to pay rent due to repairs needing done but, many do have clauses stating if because the repair has not been done you can use that as a reason to move out.

In most states, there is also clauses that will tell you how long a landlord has to take action on a non-emergency repair. If they haven't abided by these, you probably have a case against them.
What you are talking about is called constructive eviction. But there are rules around breaking a lease are very strict and involve the tenant having to have a record of complaining about said issue that is making the home uninhabitable. Check your with your city housing authority. But just not paying rent doesn't work.

I don't think I implied for the OP not to pay their rent.

The rest of it depends on what state and/or city you live in. That is why I suggested they look at the Landlord/Tenant laws.

Sorry guiness56, I did not mean to reply to you about that portion just, the first sentence about the term "constructive eviction" . The rest of the msg is directed to the OP. I should have done two postings.

Re: Breaking a lease - into collection???

Anonymous — Sun, 03 Feb 2013 23:41:17 GMT

@mmmlive1999 wrote:
@Anonymous wrote:
@mmmlive1999 wrote:
@Anonymous wrote:
I agree. Carefully look over the Landlord/Tenant laws for your state. Most do not allow for a tenant not to pay rent due to repairs needing done but, many do have clauses stating if because the repair has not been done you can use that as a reason to move out.

In most states, there is also clauses that will tell you how long a landlord has to take action on a non-emergency repair. If they haven't abided by these, you probably have a case against them.
What you are talking about is called constructive eviction. But there are rules around breaking a lease are very strict and involve the tenant having to have a record of complaining about said issue that is making the home uninhabitable. Check your with your city housing authority. But just not paying rent doesn't work.

I don't think I implied for the OP not to pay their rent.

The rest of it depends on what state and/or city you live in. That is why I suggested they look at the Landlord/Tenant laws.
Sorry guiness56, I did not mean to reply to you about that portion just, the first sentence about the term "constructive eviction" . The rest of the msg is directed to the OP. I should have done two postings.

Oh ok. No worries. I had to re-read my post to make sure I didn't steer them wrong lol.

Re: Breaking a lease - into collection???

jadeite788 — Mon, 04 Feb 2013 00:41:54 GMT

Well you cannot break a lease just simply because you can't afford it. I can tell you that. The only way you can break the lease is if the home/apt is deem inhabitable or the Landlord did not do their part according to a tenant/Landlord Act. Every state has a Tenant/Landlord Act. For example in Texas we have Texas Property Codes Chapter 92 which outlines residential. It states what a landlord can and cannot do, and vice versa for a tenant, and what remedies either party can seek if lease is broken. Most of the time, there is a reletting fee in the lease. There is an amount. Otherwise you stuck with it on your collections depending on your states SOL.

Re: Breaking a lease - into collection???

jadeite788 — Mon, 04 Feb 2013 00:55:37 GMT

@Anonymous wrote:
Hi GregB, and thanks,

The park (mobile home park) representative has already said they will attempt to re-lease it as quickly as possible. Two problems ... first, there are another six mobile homes available for lease in the park at present and second (and the bigger problem) is that the roof on the home needs replacing (it's been tarped over for about 2-3 weeks). These people seem to enjoy making tenants wait for needed repairs! :/

Well if your home was like this, then you should have notified the mobile home park representative of the damage, especially if there is water damage. You should have also taken photos of the damage. Once the landlord is notified, depending on state laws, they have a certain amount of day to fix the problem.

This is what is called deemed unhabitable in any state, and warrants you to break the lease. In your 30 day notice you should have cited this as one of the reasons why. The biggest key to it all this, it must be certified mail. Once you have moved out you must give a forwarding address to the landlord, the Landlord has 30 days to forward you an itemized deduction. If not they forfeit. Every state has this law in effect. If neither party does their part, then its he said she said, and you would have to take them to small claims, you can file if I can remember correctly a pauper's where you pay little to no money. From there a judge will decide what is fair. They can't file an eviction if you are already out, that is illegal.

Re: Breaking a lease - into collection???

Anonymous — Mon, 04 Feb 2013 01:17:55 GMT

@jadeite788 wrote:
@Anonymous wrote:
Hi GregB, and thanks,

The park (mobile home park) representative has already said they will attempt to re-lease it as quickly as possible. Two problems ... first, there are another six mobile homes available for lease in the park at present and second (and the bigger problem) is that the roof on the home needs replacing (it's been tarped over for about 2-3 weeks). These people seem to enjoy making tenants wait for needed repairs! :/
Well if your home was like this, then you should have notified the mobile home park representative of the damage, especially if there is water damage. You should have also taken photos of the damage. Once the landlord is notified, depending on state laws, they have a certain amount of day to fix the problem.
This is what is called deemed unhabitable in any state, and warrants you to break the lease. In your 30 day notice you should have cited this as one of the reasons why. The biggest key to it all this, it must be certified mail. Once you have moved out you must give a forwarding address to the landlord, the Landlord has 30 days to forward you an itemized deduction. If not they forfeit. Every state has this law in effect. If neither party does their part, then its he said she said, and you would have to take them to small claims, you can file if I can remember correctly a pauper's where you pay little to no money. From there a judge will decide what is fair. They can't file an eviction if you are already out, that is illegal.

No, not every state does. I know of 2 that don't have anything like that and are not very tenant friendly.

Re: Breaking a lease - into collection???

jadeite788 — Mon, 04 Feb 2013 02:01:21 GMT

Actually all U.S. States have to follow U.S Department of Housing and Urban Developement, however depending on each state certain statuates varies, but what the OP stated, this is a common issue.

Re: Breaking a lease - into collection???

Anonymous — Mon, 04 Feb 2013 02:38:08 GMT

In my state for instance, the landlord is NOT required to make repairs. The tenant is. Unless the landlord signed an agreement to do so. You take the rental as-is. Even the Landlord/Tenant laws tell you it is not a tenant friendly state.

They must not have received the memo.

Re: Breaking a lease - into collection???

Anonymous — Mon, 04 Feb 2013 07:44:56 GMT

Thanks so much to all who replied ... yes, I have looked into the GA State landlord/tenant laws and they allow for 'reasonable time' in order to have repairs made or even begun. I've always wondered what 'reasonable' time means ... two weeks? 30 days? It may be an out for me regarding the lease, tho' ... will see where roof repairs stand over the course of this month while packing and moving, then move on to the certified letter route.

Thanks so very much, all!!

Re: Breaking a lease - into collection???

Anonymous — Mon, 04 Feb 2013 07:49:49 GMT

Just forgot to add ... I did report the roof damage as soon as I noticed it (I've reported *all* repairs needing tending, albeit via telephone calls to the office, nothing in writing). The roof is not caving in at this point ... yet ... heh, tho' there's a threatening-looking creeping crack/hole in one of the front bedrooms. The tarps are keeping the rain out. But again ... what does the term *reasonable* mean regarding time in landlord/tenant laws?!

Thanks!

Re: Breaking a lease - into collection???

madmann26 — Mon, 04 Feb 2013 11:31:28 GMT

Have you thought about just talking to the landlord and explaining the situation? You will catch more bees with honey on this one.

Re: Breaking a lease - into collection???

Anonymous — Mon, 04 Feb 2013 12:23:13 GMT

Hi madmann26 and, yes, that's the very first thing I did. Quite pleasantly and reasonably, too. The office worker was not interested in my explanations nor my reasons, she cited the three reasons allowed, and told me I'm responsible for the remainder of the balance until the office can re-lease it.

Re: Breaking a lease - into collection???

madmann26 — Mon, 04 Feb 2013 12:25:13 GMT

@Anonymous wrote:
Hi madmann26 and, yes, that's the very first thing I did. Quite pleasantly and reasonably, too. The office worker was not interested in my explanations nor my reasons, she cited the three reasons allowed, and told me I'm responsible for the remainder of the balance until the office can re-lease it.

Check your lease paperwork. Every lease that I have signed has included a clause that states that if I meet certain requirements (ie, timely notification of vacating, usually 30-day written notice) I can move out, though, I would forfeit my deposit or security monies.