What lawsuit should I expect if I can't pay a months rent?
Full Question:
Answer:
Generally, a person who signs a lease for a year is obligated to pay the full term of the lease unless the lease provides for early termination. If the reason for not being able to carry out the term of the lease isn't due to any fault on the landlord's part, such as failure to make repairs or provide livable conditions, the tenant may be sued for the rents due for the full term of the lease, plus late charges and attorney fees. The landlord is allowed to use the security deposit to cover damages due to a breach of lease, such as late fees. etc. A security deposit typically cannot be credited toward the payment of the final month's rent.
However, the landlord must mitigate damages, which means to take steps to reduce the amount of loss. Therefore, the landlord must make a reasonable effort to relet the premises to another tenant for the remainder of the term. Reasonable efforts would include advertising the property and showing it to potential tenants.
If the landlord sues and wins a judgment in court, the judgment may be used to garnish wages or attach assets such as bank accounts if it remains unpaid. It may be possible to negotiate withthe landlord to agree to an early termination. The landlord will typically want some form of compensation for such an agreement. It may also be possible to find another tenant and have the lease assigned to the new tenant.
The following is a MD statute:
8-401.
(a) Whenever the tenant or tenants fail to pay the rent when due and
payable, it shall be lawful for the landlord to have again and repossess the
premises.
(b) (1) Whenever any landlord shall desire to repossess any premises to
which the landlord is entitled under the provisions of subsection (a) of
this section, the landlord or the landlord's duly qualified agent or
attorney shall file the landlord's written complaint under oath or
affirmation, in the District Court of the county wherein the property is
situated:
(i) Describing in general terms the property sought to be repossessed;
(ii) Setting forth the name of each tenant to whom the property is rented
or any assignee or subtenant;
(iii) Stating the amount of rent and any late fees due and unpaid;
(iv) Requesting to repossess the premises and, if requested by the
landlord, a judgment for the amount of rent due, costs, and any late fees;
and
(V) IF APPLICABLE, STATING THAT, TO THE BEST OF THE LANDLORD'S
KNOWLEDGE, THE TENANT IS DECEASED, INTESTATE, AND WITHOUT NEXT OF KIN; AND
(v)(VI) If the property to be repossessed is an affected property as
defined in Section 6-801 of the Environment Article, stating that the
landlord has registered the affected property as required under Section
6-811 of the Environment Article and renewed the registration as required
under Section 6-812 of the Environment Article and:
1. A. If the current tenant moved into the property on or after February
24, 1996, stating the inspection certificate number for the inspection
conducted for the current tenancy as required under Section 6-815(c) of the
Environment Article; or
B. On or after February 24, 2006, stating the inspection certificate
number for the inspection conducted for the current tenancy as required
under Section 6-815(c), Section 6-817(b), or Section 6-819(e) of the
Environment Article; or
2. Stating that the owner is unable to provide an inspection certificate
number because:
A. The owner has requested that the tenant allow the owner access to the
property to perform the work required under Title 6, Subtitle 8 of the
Environment Article;
B. The owner has offered to relocate the tenant in order to allow the
owner to perform work if the work will disturb the paint on the interior
surfaces of the property and to pay the reasonable expenses the tenant
would incur directly related to the relocation; and
C. The tenant has refused to allow access to the owner or refused to
vacate the property in order for the owner to perform the required work.
(2) For the purpose of the court's determination under subsection (c)
of this section the landlord shall also specify the amount of rent due
for each rental period under the lease, the day that the rent is due for
each rental period, and any late fees for overdue rent payments.
(3) The District Court shall issue its summons, directed to any
constable or sheriff of the county entitled to serve process, and
ordering the constable or sheriff to notify the tenant, assignee, or
subtenant by first-class mail:
(i) To appear before the District Court at the trial to be held on the
fifth day after the filing of the complaint; and
(ii) To answer the landlord's complaint to show cause why the demand of
the landlord should not be granted.
(4) (i) The constable or sheriff shall proceed to serve the summons upon
the tenant, assignee, or subtenant or their known or authorized agent as
follows:
1. If personal service is requested and any of the persons whom the
sheriff shall serve is found on the property, the sheriff shall serve any
such persons; or
2. If personal service is requested and none of the persons whom the
sheriff is directed to serve shall be found on the property and, in all
cases where personal service is not requested, the constable or sheriff
shall affix an attested copy of the summons conspicuously upon the
property.
(ii) The affixing of the summons upon the property after due
notification to the tenant, assignee, or subtenant by first-class mail
shall conclusively be presumed to be a sufficient service to all persons
to support the entry of a default judgment for possession of the
premises, together with court costs, in favor of the landlord, but it
shall not be sufficient service to support a default judgment in favor of
the landlord for the amount of rent due.
(5) Notwithstanding the provisions of paragraphs (1) through (4) of
this subsection, in Wicomico County, in an action to repossess any
premises under this section, service of process on a tenant may be
directed to any person authorized under the Maryland Rules to serve
process.
(6) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (3) THROUGH (5) OF
THIS SUBSECTION, IF THE LANDLORD CERTIFIES TO THE COURT IN THE WRITTEN
COMPLAINT REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION THAT, TO THE
BEST OF THE LANDLORD'S KNOWLEDGE, THE TENANT IS DECEASED, INTESTATE, AND
WITHOUT NEXT OF KIN, THE DISTRICT COURT SHALL ISSUE ITS SUMMONS, DIRECTED
TO ANY CONSTABLE OR SHERIFF OF THE COUNTY ENTITLED TO SERVE PROCESS, AND
ORDERING THE CONSTABLE OR SHERIFF TO NOTIFY THE OCCUPANT OF THE PREMISES
OR THE NEXT OF KIN OF THE DECEASED TENANT, IF KNOWN, BY PERSONAL
SERVICE:
1. TO APPEAR BEFORE THE DISTRICT COURT AT THE TRIAL TO BE HELD ON THE
FIFTH DAY AFTER THE FILING OF THE COMPLAINT; AND
2. TO ANSWER THE LANDLORD'S COMPLAINT TO SHOW CAUSE WHY THE DEMAND OF
THE LANDLORD SHOULD NOT BE GRANTED.
(II) 1. THE CONSTABLE OR SHERIFF SHALL PROCEED TO SERVE THE SUMMONS
UPON THE OCCUPANT OF THE PREMISES OR THE NEXT OF KIN OF THE DECEASED
TENANT, IF KNOWN, AS FOLLOWS:
A. IF ANY OF THE PERSONS WHOM THE SHERIFF IS DIRECTED TO SERVE ARE
FOUND ON THE PROPERTY OR AT ANOTHER KNOWN ADDRESS, THE SHERIFF SHALL
SERVE ANY SUCH PERSONS; OR
B. IF NONE OF THE PERSONS WHOM THE SHERIFF IS DIRECTED TO SERVE ARE
FOUND ON THE PROPERTY OR AT ANOTHER KNOWN ADDRESS, THE CONSTABLE OR
SHERIFF SHALL AFFIX AN ATTESTED COPY OF THE SUMMONS CONSPICUOUSLY UPON
THE PROPERTY.
2. THE AFFIXING OF THE SUMMONS UPON THE PROPERTY SHALL CONCLUSIVELY BE
PRESUMED TO BE A SUFFICIENT SERVICE TO ALL PERSONS TO SUPPORT THE ENTRY
OF A DEFAULT JUDGMENT FOR POSSESSION OF THE PREMISES, TOGETHER WITH COURT
COSTS, IN FAVOR OF THE LANDLORD, BUT IT SHALL NOT BE SUFFICIENT SERVICE
TO SUPPORT A DEFAULT JUDGMENT IN FAVOR OF THE LANDLORD FOR THE AMOUNT OF
RENT DUE.
(c) (1) If, at the trial on the fifth day indicated in subsection (b) of
this section, the court is satisfied that the interests of justice will be
better served by an adjournment to enable either party to procure their
necessary witnesses, the court may adjourn the trial for a period not
exceeding 1 day, except with the consent of all parties, the trial may be
adjourned for a longer period of time.
(2) (i) The information required under subsection (b)(1)(v) (B)(1)(VI)
of this section may not be an issue of fact in a trial under this
section.
(ii) If, when the trial occurs, it appears to the satisfaction of the
court, that the rent, or any part of the rent and late fees are actually
due and unpaid, the court shall determine the amount of rent and late
fees due as of the date the complaint was filed, if the trial occurs
within the time specified by subsection (b)(3) of this section.
(iii) 1. If the trial does not occur within the time specified in
subsection (b)(3)(i) of this section and the tenant has not become
current since the filing of the complaint, the court, if the complaint so
requests, shall enter a judgment in favor of the landlord for possession
of the premises and determine the rent and late fees due as of the trial
date.
2. The determination of rent and late fees shall include the following:
A. Rent claimed in the complaint;
B. Rent accruing after the date of the filing of the complaint;
C. Late fees accruing in or prior to the month in which the complaint was
filed; and
D. Credit for payments of rent and late fees made by the tenant after the
complaint was filed.
(iv) In the case of a residential tenancy, the court may also give
judgment in favor of the landlord for the amount of rent and late fees
determined to be due together with costs of the suit if the court finds
that the residential tenant was personally served with a summons.
(v) In the case of a nonresidential tenancy, if the court finds that
there was such service of process or submission to the jurisdiction of
the court as would support a judgment in contract or tort, the court may
also give judgment in favor of the landlord for:
1. The amount of rent and late fees determined to be due;
2. Costs of the suit; and 3. Reasonable attorney's fees, if the lease
agreement authorizes the landlord to recover attorney's fees.
(vi) A nonresidential tenant who was not personally served with a
summons shall not be subject to personal jurisdiction of the court if
that tenant asserts that the appearance is for the purpose of defending
an in rem action prior to the time that evidence is taken by the court.
(3) The court, when entering the judgment, shall also order that
possession of the premises be given to the landlord, or the landlord's agent
or attorney, within 4 days after the trial.
(4) The court may, upon presentation of a certificate signed by a
physician certifying that surrender of the premises within this 4-day
period would endanger the health or life of the tenant or any other
occupant of the premises, extend the time for surrender of the premises
as justice may require but not more than 15 days after the trial.
(5) However, if the tenant, or someone for the tenant, at the trial, or
adjournment of the trial, tenders to the landlord the rent and late fees
determined by the court to be due and unpaid, together with the costs of
the suit, the complaint against the tenant shall be entered as being
satisfied.
(d) (1) (i) Subject to the provisions of paragraph (2) of this
subsection, if judgment is given in favor of the landlord, and the tenant
fails to comply with the requirements of the order within 4 days, the
court shall, at any time after the expiration of the 4 days, issue its
warrant, directed to any official of the county entitled to serve
process, ordering the official to cause the landlord to have again and
repossess the property by putting the landlord (or the landlord's duly
qualified agent or attorney for the landlord's benefit) in possession
thereof, and for that purpose to remove from the property, by force if
necessary, all the furniture, implements, tools, goods, effects or other
chattels of every description whatsoever belonging to the tenant, or to
any person claiming or holding by or under said tenant.
(ii) If the landlord does not order a warrant of restitution within sixty
days from the date of judgment or from the expiration date of any stay of
execution, whichever shall be the later:
1. The judgment for possession shall be stricken; and
2. The judgment shall be applied to the number of judgments necessary
to foreclose a tenant's right to redemption of the leased premises as
established in subsection (e)(2) of this section unless the court in its
discretion determines that the judgment may not apply for purposes of
subsection (e)(2) of this section.
(iii) If the landlord orders a warrant of restitution but takes no
action on the warrant within 60 days from the later of the date the court
issues the order for the warrant or the date as otherwise extended by the
court:
1. The warrant of restitution shall expire and the judgment for
possession shall be stricken; and
2. The judgment shall be applied to the number of judgments necessary
to foreclose a tenant's right to redemption of the leased premises as
established in subsection (e)(2) of this section unless the court in its
discretion determines that the judgment may not apply for purposes of
subsection (e)(2) of this section.
(2) (i) The administrative judge of any district may stay the execution
of a warrant of restitution of a residential property, from day to day,
in the event of extreme weather conditions.
(ii) When a stay has been granted under this paragraph, the execution
of the warrant of restitution for which the stay has been granted shall
be given priority and completed within 3 days after the extreme weather
conditions cease.
(e) (1) Subject to paragraph (2) of this subsection, in any action of
summary ejectment for failure to pay rent where the landlord is awarded a
judgment giving the landlord restitution of the leased premises, the
tenant shall have the right to redemption of the leased premises by
tendering in cash, certified check or money order to the landlord or the
landlord's agent all past due amounts, as determined by the court under
subsection (c) of this section, plus all court awarded costs and fees, at
any time before actual execution of the eviction order.
(2) This subsection does not apply to any tenant against whom 3
judgments of possession have been entered for rent due and unpaid in the
12 months prior to the initiation of the action to which this subsection
otherwise would apply.
(f) (1) The tenant or the landlord may appeal from the judgment of the
District Court to the circuit court for any county at any time within 4
days from the rendition of the judgment.
(2) The tenant, in order to stay any execution of the judgment, shall
give a bond to the landlord with one or more sureties, who are owners of
sufficient property in the State of Maryland, with condition to prosecute
the appeal with effect, and answer to the landlord in all costs and
damages mentioned in the judgment, and other damages as shall be incurred
and sustained by reason of the appeal.
(3) The bond shall not affect in any manner the right of the landlord to
proceed against the tenant, assignee or subtenant for any and all rents that
may become due and payable to the landlord after the rendition of the
judgment.
8-405.
(A) IF A TENANT UNDER A LEASE DIES INTESTATE AND WITHOUT NEXT OF KIN,
THE LANDLORD MAY BRING AN ACTION FOR SUMMARY EJECTMENT UNDER Section 8-401
OF THIS SUBTITLE AGAINST THE TENANT NAMED IN THE LEASEREGARDLESS OF
NOTWITHSTANDING THE TENANT'S DEATH.
(B) THE LANDLORD SHALL CERTIFY TO THE COURT IN THE WRITTEN COMPLAINT
REQUIRED UNDER Section 8-401(B)(1) OF THIS SUBTITLE THAT, TO THE BEST OF
THE LANDLORD'S KNOWLEDGE, THE TENANT IS DECEASED, INTESTATE, AND WITHOUT
NEXT OF KIN.
(C) PROPERTY OR INCOME FROM PROPERTY THAT A LANDLORD HOLDS FOR A
DECEASED, INTESTATE TENANT WITHOUT NEXT OF KIN SHALL BE PRESUMED
ABANDONED IN ACCORDANCE WITH TITLE 17 OF THE COMMERCIAL LAW ARTICLE.
Please see the information at the following links:
http://definitions.uslegal.com/l/landlord-tenant-termination/
http://definitions.uslegal.com/m/mitigation-of-damages/
http://lawdigest.uslegal.com/landlord-tenant/lease-termination/2394/
http://lawdigest.uslegal.com/real-estate-laws/landlord-tenant-rights/
http://lawdigest.uslegal.com/real-estate-laws/leases-and-rental-agreements/
http://definitions.uslegal.com/j/judgment-liens/
http://definitions.uslegal.com/j/judgment-debtor/
http://definitions.uslegal.com/g/garnishments/
http://definitions.uslegal.com/a/assignments/
