Understanding Your Rental Debt Obligations After Eviction or Move-Out
Understanding Your Rental Debt Obligations After Eviction or Move-Out
Blog Article
When you move out of a rental unit--whether by choice or due to expulsion do you still owe money but it doesn't necessarily mean the conclusion of your financial relationship with your landlord. Many tenants are shocked to discover that they may be held accountable for unpaid rent or other lease obligations, even after they have left the unit. Knowing how the debt is structured and why it is crucial for anyone who's trying to navigate the rental process.
When a tenant signs a lease, it is considered to be a legally binding agreement. The rent due under the lease will continue to be due in accordance with the lease's terms, even if the tenant moves out of the unit before the lease ends. In many cases landlords have the option to pursue rent unpaid through formal collection actions, such as the courts as well as collection agents.
A common situation occurs when a tenant moves out before the lease expires. For instance, if the tenant is on an agreement for 12 months and they move out after eight months without concluding an early termination agreement and the remainder of 4 months' rent might still be owed. In some jurisdictions, landlords have a legal obligation to reduce the tenant's debts by trying to rent the property. However, the original tenant may still be held liable for rent until the tenant can be found or the lease is formally terminated.
In the event of an eviction the rental debt could build up even faster. A eviction usually follows a period of missed payments. By the time the legal process is over the tenant could have a large amount of rental, as well as court fees and possibly even attorney costs. Once the tenant is removed, the landlord can still seek to recover any outstanding balance.
In addition to the rent, tenants may be liable for damage that is beyond normal wear and tear. If the unit needs repair or cleaning that goes beyond the normal usage, these costs could add to final cost. Security deposits can help to pay for a portion of this debt but they rarely will be enough, especially when there is a violation of lease or serious damage.
Rent arrears that are not paid can affect the credit score of the tenant as well as future housing options. Once a landlord obtains a judgment or sends this debt over to an collection agency it could show up on the credit report of the tenant, making it harder to find a new rental or financing.
For tenants leaving a property--whether voluntarily or due to eviction--it's important to obtain an official accounting by the owner. This will help clarify any amount due and permits the tenant to dispute inaccurate charges if needed. Inquiring for legal advice or negotiating a payment plan may aid in reducing the long-term effects.
Simply vacating the rental property will not erase financial responsibilities that are entailed by the lease. Staying informed about your rights and obligations could save you from surprises and help solve any rental debt more effectively.
Moving out of a rental unit—whether by choice or due to eviction— do you still owe money not necessarily mark the end of your financial relationship with the landlord. For more information please visit if you are evicted are you responsible for rent.