Agreement for Tenants to Give 2 Months Notice - This okay?

[Millions]

So, my tenants are now moving out. Brutal time but it is what it is.

They were on a year lease until this past May. They then wanted to buy a place so they asked me if they could go month-to-month providing they give me 2 months notice. I thought that seemed very fair so I agreed. However, I did tell them September 1st would be the month where I'd require another lease as being vacant in the winter isn't great.

They ended up finding a place and giving notice on July 20th. Technically, as per 2 months notice, this would take them until September 20th right? They are moving out September 1.

I've been advertising like crazy and even dropped the rent 30% as I wasn't getting any viewings at all. I have some viewings today but so far not even a single application in 40 days. Just a bad market despite being in Killarney and despite lowering the rent from $1575 to $1200. Plus $300 off hat first month rent.

So if I don't find anyone for Sept 1, should I still charge them for at least half of September since we both agreed on 2 months notice and signed that on the lease?

or should it before the whole month? or nothing at all?

Just wondering what is aloud. We did both agree and we did both add it to the lease that it would be 2 months notice.

Thanks!

 

[Thomas Beyer]

Leases always go to the first unless otherwise stated. So they need to pay to end of September. Keep the security deposit if you cannot rent by Sept. 1. ( I assume this is in Calgary as not everyone know where Killarney is.)

 

[Matt Crowley]

I think it depends on what your emails and conversations have been once they provided you 1.5 months notice.

Right now I see Broadstreet advertising first 3 months rent as their headline rent with the reduced rent and then having a higher rent for the remaining 9 months. Strip out all utilities and add-ons. Drop the DD if you are confident you can select a good tenant. Offer as much a-la-carte as possible. Lower rent if they weed the flower beds regularly, mow, shovel. I use a rental incentive to increase the rent $50 - $100 per month if I receive a late payment or tenant duties are not performed. Look for any way possible to crunch that headline rent down and reward really good tenants. This is the year to invest in tenant profile.

 

[Millions]

hmmm, pretty much no emails since really. Just texts about showing the place, which have been unsuccessful (the showings)..

Utilities can't be stripped out due to condo fees but I can definitely play with the DD and 3-month bonus so to speak. Everything is taken care of as it is a condo. Problem is that the price is no sunk to 2006-levels once again and an assessment has pushed condo fees to a whopping $650, almost the cost of the mortgage itself. I'd like to do reno's but there's no point as real estate seems to be constantly losing value here.

I'll try what you recommend for renting it out. I'd move in myself if it wasn't so expensive with the condo fees. I'd sell but someone is selling one so low right now that it's impossible. Debating foreclosure but need to look into how it all works...

Thank goodness for the 2-month notice at least.

Thanks for the advice

 

[Matt Crowley]

All good. My additional suggestion is to create a one-week database of all the rentals on Kijiji (or Craigslist if more popular in your area). Track #BD, #BA, SF, DD, rent, incentives. This will give you an idea of what you can actually rent the apartment for. If your advertising plan is good, then it is likely you are overpriced for today's market (unfortunately). There is always a buyer out there. Getting an idea on the rent can help with the financial analysis in whether to carry the negative cash flow property vs. foreclose vs. sell. (I would highly recommend you sell at a loss before foreclosure!)