Okay so back in August my best friend since 7th grade and I sign a joint-lease on a 2/2 apartment. It is under both our names, using our credit. Its $700/mo, so $350/ea. A few weeks ago his girlfriend decides to pack up and move back home since she can't get work, and of course he's whipped so he follows like a lost puppy. I can't afford the $700/mo so I'm forced to move back as well. The problem is, he thinks he can just move and forget about this. I know we signed legal paperwork for a 12-month lease on our apartment and if we can't find someone to sublease to, we're screwed. Does anyone know what kind of a hit my credit will take? I'm in the low-700s. What happens when the apartment refers us to a collection agency?


Thanks

 

You need to look closely at your lease. You may not even be allowed to sublet.

If you stay on the lease, you might be able to find another roomate to replace your friend. If you can't find someone else to pay the full $350, maybe your former roomate can supplement the difference.

Yes, this is very bad for your credit. But it's the landlord who is the real victim here if you and your friend fail to meet your obligations. If the landlord wants to play hardall, the law is on their side, and they can get a judgement against you and your friend for all unpaid rent, and potentially garnish your future wages. Basically, they would have rented the apartment to someone else, but you and your friend promised them you would pay. FWIW, the landlord can hold YOU responsible for the full amount, as well as hold your friend repsonsible for the full amount. They won't care that your fair share was only 1/2 the rent. If it's easier to get your friend's share from you, that is what they will try to do.

So yeah, it's going to be a lot harder to rent another apartment in the future when that starts coming up on your credit check. Prepare to pay higher interest on your future cars and homes, too. Maybe you can find a way to stick it out, scrape up the money, and in August move into a place you can afford.

 

Maybe you can talk to the landlord, explain the situation and they might let you out of the lease. Sucks to be in that situation, but dirt bike dave is right, yer screwed. Talk to them, find another roommate, something. Good luck!

 

Read the lease - what are the procedures for breaking it? I've never seen a lease that is unbreakable. It may require 60 days notice and forfeit of your security deposit or something like that, but it CAN be done with nothing adverse.

 

It all depends on the lease, how your landlord wants to handle it and the rental market.

If they know they can easily rent the unit, they may be more flexible and let you out of the lease for your deposit. Otherwise you could be responsible for the remaining rent on the lease plus eviction fees and collection costs.

As far as your credit, this could have no impact if the lessor doesn't turn it over to a collector/sue you. If they do go to a collection agency or sue you, your credit will take a beating.

Try to find another roommate or try to work with the landlord. Walking away is the last option for you

Good luck!

 

Very true. Look around your apartment complex. Is it fully leased? If so, they may have a waiting list and may let you off the hook. OTOH, if there is high vacancy and rents are declining, they will demand you honor your signed lease.

 

I talked to the manager, they have apartments available they are still trying to fill. All she said is to go on craigslist.

I do not have a security deposit either.

 

Consider selling the truck to make rent.

 

Food, utilities, and transportation first, then housing. You can sleep in the truck, but you can't drive an apartment to work.

 

alex thats why from now on you should know to sign a lease by the room. its alot safer for you if something like this happens ever again. basically you need to get on his *** and get his family involved because he cant just leave you to deal with all the rent since you both signed the lese. you can pursue legal action on him also because its both your credit at stake and your guarantors also

 

I'll play D.A. wouldn't someone easily contest "get a job you can walk to"

 

700 bucks a month is actually pretty low... I'm paying 1250 / month for an apartment... If you're buddy decided to move out, he's still responsible for half the rent, regardless.

If I were you, I would talk to the landlord and let them know whats up. Ask them what your options are. Maybe they'll split it out so that your buddy will be held responsible for half the rent, and if he doesn't pay up, he'll be the one getting dinged... but this is probably not likely.

There may also be a 'buy out' option. Also, is this an individual or a company you're leasing from? Most times, individual land lords don't report to a credit agency or anything, but will take you to small claims for the total amount of rent due via the lifetime of the lease.

Take this as a lesson not to go into legal agreements with people who will not responsibly be able to hold their agreement.

 

Yeah, and that would pay for about a month if anything.

I decided to move back to my parents house. I'm still worried about my credit, though.

 

You should be. You should also be worried that the landlord will sue you for the remaining eight months of rent (both your share and your roomate's share).

Sure, that's a worst case scenario, and maybe you will get to skip out on the lease with no consequences to your finances or credit.

Bottom line is you gave your word via a signed contract that you would rent the place for 1 year. Breaking your signed oath may be taking the easy way out in the short term. But you are putting yourself at risk for future consequences, besides just a ding on your credit score.

I guess I'm old fashioned and was raised in a day when a signature on a legal contract meant something. IMO, breaking the lease should be your LAST option, not your first.

When you weigh all the possible negatives, it seems to me finding an extra $350 for 8 more months is not so bad. Borrow it (while your credit is still good), earn it, sell some assets, all of the above, etc...

Then maybe you find a new, better roomate next month.

 

if you can't afford the lease, you can't afford it. What about people who lose their job? Is that a worthy reason to break the lease?

Most leases have a breaking clause. Again, speak to your landlord, find out what your options are, and if you can't break the lease, start calling around and trying to find a friend to room with you, or sue your friend for the amount of the next 8 months rent.