Dave Ramsey says: Give a little grace when someone is struggling

Dear Dave,

I have a tenant whose old agreement is up soon, but he signed a new lease about a month ago. He also went ahead and gave me a deposit, plus the first month’s rent. A couple of days ago, he called and asked if we could cancel the agreement. He learned that his ex-wife has developed a serious health issue, and he’d like to move closer to her to help take care of their two kids. What should I do?

Randall

Sometimes it’s best to give grace to someone who is struggling

Dear Randall,

I think I probably understand your situation better than most. I own several rental properties, and I know for a fact that as a landlord you run into all kinds of unusual situations. Sometimes, these situations are more genuine than others. I’d first suggest gently asking for some proof as to what’s going on. But on the surface it sounds like he’s got a valid, kind-hearted and very responsible reason for wanting to cancel the agreement.

Essentially, this guy is asking for a little mercy and understanding. So, if it were me, and what he’s telling you turns out to be true, I’d try to lease the place to someone else as quickly as possible. I’d also refund his deposit, plus any money it doesn’t cost you in the process. In other words, if it took two weeks to find another tenant I’d give back the deposit and two weeks’ rent. But if his ex is in seriously bad shape, and you’re on solid enough financial ground to withstand the blow, you might want to consider just letting him out of the agreement completely, returning all his money and moving on to finding another tenant.

As a landlord and businessman, I understand you have to look out for yourself and your concerns. But at the same time, you don’t want to take advantage of someone who’s genuinely struggling, either.

— Dave

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