Law-Forums.org

[sayre]

Currently unemployed and cannot make $1500 rent payment. Landlord had me sign addendum agreeing to pay $3000 penalty for early move out (I'm paid up 8 mos into 12 mo contract). Trying to minimize credit issues (lessor of 2 evils) so I have possibility of renting somewhere else when I get back on my feet. Wondering if I just don't make June payment, let them post notice and disappear, or approach them (big property management co) and ask to breach contract and arrange for payments of penalty plus other costs they will assess ($3000, $1500 rent due, cleaning costs, etc.). They have already stated they would not assist in finding another tenant when I told them I was thinking about moving out early and they pointed out the addendum I had to sign upon move in. I did not tell them I was unemployed. Not sure what to do. I had great credit till this current month and desire to minimize the impact of this necessary move. I can borrow small money from family, enough to perhaps rent a room somewhere (half the price of current rent) but the loan was contingent upon moving out of "expensive" apartment immediately.

[jabin20]

Gettign evicted is worse. Find your own new tenant if they won't help you.

[francisco]

You should tell them about your job loss, that fact could work heavily in your favor. They don't want a tenant that can't afford the place any more than you want to stay in a place in you can't afford.

One thing confuses me, why do you have to pay an early move out fee of 3k PLUS the monthly rent? Or am I misunderstanding you?
Reason I ask is because the penalty fee is supposed to be in lieu of monthly rent, if you were to continue paying rent it would defeat the purpose of a penalty fee..

[fychan97]

Borrowing money to pay a bad debt is a bad move, unless you have a perspective job that seems imminent.
Your loss of a job is coincidental and has taken your focus off the real issue, which is the lack of budgeting and living beyond your means.
A proper budget includes contingency plans of a rainy day fund, not living paycheck to paycheck.
In 2009 I lost my job that paid me over $100K a year also. I had money to live on for over 2 years. We spent out saving and did not change our lifestyle. We could not live like we did with the small amount that unemployment paid us (The Max) because it was a small amount compared to what we use to spend.
Today we live in an apartment, we never did before, but we had to adjust our budget to my present rate of income.
Before acting, you must consider what are your realistic options, and budget them with the monies that you are earning on unemployment. This will most certainly not include this apartment and most likely will be a room to rent as you mentioned.

Moving out:

An eviction will be detrimental to your credit, and will prevent you from renting a descent place for many years.
Breech of Contract:
I believe that you should plan to and move out at the end of the month that you pay for.
(1) Send a certified letter stating why you are moving out and ask for advise on what you should do from the management company.
(2) Get a voice recording, or better printed material from the company stating that they will not assist you in finding a new tenant.
(3) Look for a tenant.
(4) Document, document, document.


The management company can only charge you unpaid rent if they make a diligent effort to look for a new tenant. The 1500 rent cannot be charged if they do not. be sure that you send them your new forwarding address and send it certified mail return receipt.
They must send you a letter stating what if any monies were used to offset costs of your security deposit. If they do not send you your security deposit, sue they for its return and use a lawyer. they will have to pay for the lawyer.
The early move out penalty may or may not be legal, just because you signed an agreement, do not make it so, look for Tennent rights of your state.

make payments thru the mail with money orders or checks and send them certified mail with return reciept. If you go to Court, the Judge will ask you if you have paid anything, if your answer is no, you loose. If you show a dilligant effort to pay, she or he may force the finance company to accept the payments. Budget the payments and send them reguardless of what they say. If they send them back to you , keep the reciets and letters of explination, including envelopes to prove dates.
If they do not accept payments, they may be ruled against in court, because they have not made a diligant effort to collect a debt.

You credit will be affected, but not as bad as you think.
More inportant than your credit is living by your means.
Credit history is given greatly on your spending history. If you spend alot, you have a great score. This is usually because you live beyond your means, and look where it got you.

ALWAYS SAVE FOR A RAINY DAY
ALWAYS TRY TO PAY YOU DEBT
ALWAYS ATTEMPT TO RESOLVE DISPUTES BEFORE YOU HAVE ACTION TAKEN AGAINST YOU.

ALWAYS, ALWAYS, ALWAYS LIVE WITHIN YOUR MEANS