Student Housing Q: Already signed next year lease, but concerned about the economy. Should we release them?

Student Housing Q
Lease expires in August. Student already signed the next year lease. Students parents are not confident in continuing the second lease considering the economy at this time.
Anyone experiencing anything like this?
Hold them accountable to the signed lease that begins in September or release them once current lease expires?

release them...they will respect you and come back

My heart says...release them but then again we have an obligation to our investors/owners. Maybe hold them liable for the 30/60 days notice as of the day they made contact w/ you.

Student/Parent is willing to stay (pay) through August when first contract expires. Just wanting to dissolve the lease they signed that begins 9/1. ????????‍♀️ seems fair to me.

To be honest, if new lease has not begun my companies have never not allowed it. I guess it will depend on your company and state.

We do hold them to the current lease.

Hold them to their current lease. The renewal has not gone into effect until the day it starts. Cancel the renewal and let them move out.

I'm surprised so many would say release them? I wonder if all are in student housing? We are in a hard spot, but if you let everyone out who asks for next year, you will likely be sitting on a lot of vacants. Still uncertain times, but we are holding folks to the leases they have signed and continuing with the same pre-Covid re-rental policies.

Mandy, I couldn’t agree with you more. Would they let an apartment sit vacant for an entire year? No. The answer is resoundingly no.

Mandy Hester agreed! I say the only option to give the residents is to Sublease

Release after the current lease. Doesn't seem right to hold them for the new lease that is that far out, especially under current circumstances. Plenty of notice is given and plenty of time to get someone else in there.

We are holding accountable for 2020-2021 school year but they do have the option to do a lease takeover/sublease

The contract is not effective, cannot hold them accountable.

Leah Love Orsbon truth. If they desire to change their mind they can. They will still have to submit the proper notice. Things can be different where u are but the contract is valid when the date is effective.

Mallory, Sorry, but you’re wrong. Are you in student housing?

Once the rental lease agreement has been signed, the landlord and the tenant have entered into a binding contract, whether the tenant actually occupies the unit.
If a tenant signed a lease but changed their mind about moving in, you must treat the notification as his intent to break the lease agreement.

Leah Love Orsbon definitely not in student housing, started there, never going back. How exactly would you go about closing out their account, curious mind...

Mallory, accelerate their rent and turn them over to collections.

Or in states that don’t allow acceleration, charge monthly until re-rented.

Leah Love Orsbon in the state of louisiana we can accelerarte rent however once keys are turned in a proper notice was give on their active lease we find it very hard to accelerate rent on a lease term that never took effect. If our collections company sees that they lease they are currently in is fulfilled and proper notice was given, they will overturn this collection.
Do you do the same for those who cancel prior to move in or just forfeit their deposit?

Mallory A Bailey you are incorrect

Mallory, everyone (in all states) are responsible for their rent until it is re-rented. If your collection agency won’t accept acceleration, just keep it charged monthly and keep it internal. It’s not as big of a deal in Multifamily because you can rent it next month. We can’t rent it again for another year.
Their deposit can be put towards their rent in some states (not Wisconsin).

Katrina Spisak Avila for ur company maybe so. Where I work and companies previously this is never a practice we uphold. Once again it could be a student community thing, I know you all prelease way in advance. Sadly I am not incorrect, if I work with your community will practice their policies.

Leah Love Orsbon our collections company will accept an acceleration, im speaking in the matter of it being disputed. Unfortunately, this is something we do not practice. We handle all current leases this way but not leases that have not begun.

Mallory, yeah, in student, if we allowed people to cancel before their leases started, we’d never be full. It would be a constant mess.

Leah Love Orsbon oh I bet. Its a catch 22 in her situation. If I'm held accountable I would wait it out and see closer to notice date. She may need that apt and will it with a swiftness out here. LSU stays over populated with the need for student housing even with all of our new developments.
Thanks for sharing.

Schools are talking about the potential for all-online classes in the fall. If this happens, why would someone relocate back to their college town? This presents a very difficult situation for sure.