Managing Conflict with Pre-Leasing, Lease Renewal, and Co-Signers
As a college town, Bellingham’s rental landscape is often intertwined with the flow of students in and out of the city, and centered around the annual school schedule. Whether you are a student, a housing provider, or a non-student renter, you’ve likely experienced the rush in pre-leasing and lease renewals leading up to the beginning of the school year. The college-town rental experience is nuanced, and can leave plenty of room for conflict to arise between renters and housing providers, or between roommates and housemates. With 55% of homes/units occupied by renters (far above the national and state averages), these factors impact a majority of households in Bellingham.
Statistics pulled from Bellingham Housing Statistics, Planning and Community Development Department
Statistics pulled from Bellingham Housing Statistics, Planning and Community Development Department
In this iteration of the Housing Stability Digest, we seek to bring light to some of the common questions and conflicts that arise during the pre-leasing and lease-renewal processes, and offer suggestions for navigating these situations in mutually beneficial ways. We will also delve into the intricacies of working with co-signers, and the unique challenges or worries that can arise when bringing a third party into a lease.
Remember that the WDRC has free Housing Stability conflict resolution services available to tenants, landlords, roommates and neighbors, and we are always happy to help you chart your next steps in a housing-related dispute. For conflict resolution support including mediation, conciliation, or conflict coaching, contact a Housing Stability Case Manager at (360) 676-0122 ext. 115 or housing@whatcomdrc.org
Included in this article:
Tenants: Common lease questions and concerns
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When clients come to the WDRC for mediation and conflict resolution services, mis-communications or a lack of communication are often at the heart of the issue. In this scenario, the lines of communication seem to have left a significant gap.
For the tenant – they have a desire to stay in their current unit, and have either missed or not received communication on how to make that possible. This can leave the tenant vulnerable to housing instability, cause stress as they attempt to find a new residence on a tight timeline, or impact a family’s ability to stay in their home or current school district.
For the housing provider – they now must go through the process of listing the unit and screening potential renters, cleaning and turning over that unit, and onboarding a new tenant. This process can be much more expensive and time consuming than extending an existing lease.
A good way to prevent this unfortunate situation is for landlords and tenants to communicate in real time (not just through email) at the time of lease signing about the pre-leasing/renewal process. Each company has slightly different practices, so it's worth covering this question with every new lease signed.
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As previously mentioned, the unique rental landscape of a college town can mean that property management companies are looking to renew tenant leases many months in advance of lease end dates. This process can provide stability for those who are able to renew, but for tenants who are facing job changes, family changes, or other unknown factors, it can be difficult to have the necessary information to make this early decision.
When clients come to the WDRC with this issue, we often see them explore solutions such as making or updating their personal budget, considering finding roommates, discussing future plans with their co-signer if applicable, or shopping around on the rental market for comparable units. Talking to your landlord about any uncertainty can be helpful, as well as asking for clarification on timelines, procedures, policies, etc.
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Many housing providers raise rent annually, while others may raise rent incrementally after several years. In either case a tenant who is currently rent-burdened might find that a rent increase at lease renewal pushes them outside of their budget.
If you are a low-income renter currently receiving housing subsidies, there is likely a formal process for submitting grievances and adjusting rental amounts. Try contacting the Bellingham/ Whatcom County Housing Authority or any other relevant agencies to explore your options.
If you are not receiving housing subsidies, then the path forward can be less clear, but there are still many options available. A great first step is to reach out to your landlord to see if they are open to negotiating. Even if you are renting from a large company, the people behind the policies might be open to hearing your story, and working with you on a solution. Perhaps keeping you in the unit, rather than spending money on turning the unit over, will make more financial sense than raising the rent.
If you live with roommates, negotiating to redistribute rental amounts, even for a limited time, could help to make your portion affordable. You might agree to take on additional household responsibilities in return for a lower monthly share of rent, for example.
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In most lease agreements there are stipulations about when a lease can be ended, and what happens if a tenant ends their lease early. At the WDRC we sometimes encounter cases where tenants were not aware of or have misunderstood their responsibilities around move out and lease termination, or did not know that there is a clause in their lease stating that they would be liable for rental payments until the unit was filled.
This can come as a shock to tenants, who may not have the resources to uphold this financial agreement once they have moved into another unit. Without clarity around timelines, it can also be stressful not knowing how long the unit will remain empty until the property owner is able to find a new tenant.
Clarity around early termination clauses at the beginning of a tenancy is important for property managers and tenants alike. Setting aside time to go over these lease details and create clarity at the beginning of a housing relationship can help both parties to avoid a situation that becomes a financial strain, or creates misunderstanding and conflict.
Using social media and other online groups for local housing ads can be a great way for tenants to have agency if they find themselves in the midst of this situation. Make sure to understand the landlord’s policy around lease takeovers/sublets, then post an ad for housing available. Posting the ad as soon as possible will help reduce the amount of time you could be financially responsible for rent after moving out.
Finally, communicating with the housing provider about your plans and working together to fill the unit can be a great collaborative solution.
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How do you talk to a potential new landlord about options? Creation of a payment plan is a common resolution that our mediators facilitate during a Housing Stability mediation. While a tenant may not be able to afford a large lump sum payment, payment plans can make those fees more feasible. We encourage housing providers and tenants to discuss their own financial needs, and find a payment schedule that meets the needs of both parties.
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In this scenario it's helpful to get clarity from your current landlord about the expectations for move-out cleaning, the common charges that might be applied to deposit (hourly rates for cleaning, replacement light bulbs, junk removal, etc), and the expected timeline to have cleaning services completed and final charges calculated. Negotiating to make a move-out plan can be very helpful to make sure both parties know what to expect and can take the next steps smoothly.
Landlords: Common lease questions and concerns
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This is a difficult situation, and one that requires a thoughtful approach. This is likely to be a major upheaval for the tenant and hard news to hear. As such, it's understandable if the tenant has a very strong emotional reaction to this news. It is uncomfortable to be the messenger of bad news; try to remember that it's most likely not about you personally. After they've had time to absorb the news, try offering to have a voice-to-voice conversation with them at a time/place convenient to both of you. Practice listening with empathy and curiosity, reflecting back what they've shared to demonstrate that you've heard their concerns. The tenant may be able to think and make plans more clearly after they feel heard by you. You might also hear something from them that sparks an idea for how you could help them. You need their help to get the unit ready on time for the new tenant, so consider what help they might need from you in return.
There are a myriad of scenarios that may have led to this outcome, with some common situations outlined below:
There may have been a misunderstanding about the lease renewal process which caused the tenant to miss your renewal deadline. If you do not have another vacancy where they can be placed and their unit has been rented out to another tenant, there are still ways to support them in transitioning to a new housing situation. Consider providing them with a list of housing resources, offering a positive rental reference, or offering to help with moving costs. By initiating open discussion or negotiation with the tenant you can find out what resources would be helpful for them as they move, and assess whether you or your company can help provide or guide them to any of those resources
If you do have another vacancy and want to continue renting to a good tenant, what can you offer to make this process seamless and keep them? Are there steps you can take to simplify the transition for them? Can you help them avoid the process of reapplying to a comparable unit and/or paying fees?
Perhaps this situation has arisen because you/ your company is looking to discontinue all relationship with that tenant. If the housing relationship is just not working, our mediators often work with parties to create a move-out plan that helps the tenant to securely find new housing within a timeline that works for the housing provider.
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Given the potential legal implications of this scenario, it may be best to consult a lawyer or a legal aid organization to understand your legal rights and obligations, and where there may be room to negotiate with the incoming and outgoing tenants.
Creating a move-out/ move-in plan with each of the parties can help to create some firm timelines and agreements, which parties are likely to honor if agreed upon in a neutral setting such as mediation.
The solution may be simple once parties are ready to communicate. Perhaps the current tenant doesn’t have access to a moving vehicle, and is unable to transport their belongings. By offering to hire a moving van the landlord/ property manager could help to move the process along. It could also be more complicated, such as the tenants' next housing situation falling through, and they now fear homelessness.
Regardless of the scenario, being willing to listen to all parties and remaining curious can help to lead parties to a mutually agreeable solution. The WDRC is happy to help navigate issues such as these.
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Having some open discussion with the tenants is a good way to clear this situation up. However it's understandable if the tenants are afraid that something they tell you could be used against them later. The confidentiality rule in mediation can be helpful to reassure all participants that their honesty and vulnerability will not be punished. If you do hear something from the tenants that raises a concern, start by asking them how that situation came about and how it is meeting their needs. Is there another way to meet those needs that also complies with the property management rules?
In your communication with the tenants, help them understand why it's important for you to know who is living in the residence. Maybe it's about wanting the household to be safe? Maybe you don't want the tenants to be held responsible if something goes wrong because of another person who is not on the lease. Perhaps it is in both the landlord and tenants’ best interest to have clarity on who is residing in the space.
A mediator can be very helpful in this situation, guiding all parties to come up with alternatives that are satisfying to all.
Working with Co-Signers
Conflict resolution strategies can be key in navigating some of the intricacies of working with co-signers on your lease. When financial options seem limited – mutually agreed upon, creative solutions can help co-signers to move forward from difficult situations.
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If your rental is enrolled in a credit reporting program, the primary signer’s rent payments can affect the co-signer’s credit score. Thus it is very important to keep an open line of communication around rent payment, and to discuss with your co-signer at the time of lease signing what backup plans you’ll create in case one or more party is not able to pay on time.
If a payment is already late or has been missed, discuss with the co-signer how you can repair your relationship with them (be it financial, friendship, family, etc.) after resolving the issue with your housing provider. Consider prioritizing which issues are most time sensitive or the highest priority (including housing stability, or the possibility of eviction) and consider creative options among the household. Maybe the tenant that owes rent could make payments in installations to the co-signer who unexpectedly covered rent.
It is important to remember that all parties on the lease collectively share the rent responsibility, and collaborating as a “team” to resolve issues of non-payment will be more effective and productive than singling one party out. Often, leases don’t explicitly state who is responsible for what percentage of rent. Unpaid rent is always stressful for everyone (nobody wants to be unable to pay), and a little grace can go a long way. Consider what kinds of communication will be most helpful with the person who’s behind on payments, and stay curious rather than blaming or shaming someone who was unable to meet their rent commitment this month.
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Start by asking the landlord what alternatives there may be to co-signers. This might include making a larger security deposit, finding a roommate with good credit who can sign the lease, or providing positive rental recommendations from previous landlords.
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This is another scenario where payment plans can be an elegant solution. Talk to your housing provider about paying the co-signer application fee incrementally over several months. Alternatively, if your co-signer had the resources to pay the fee, you could agree to pay them back over time for that expense.
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With many parties involved in a housing situation, having open lines of communication with the full group is important. Creating a roommate agreement, or agreeing on ground rules early on can help to avoid conflict in the future. How will all tenants and co-signers communicate with each other about their goals?
Check in with the landlord about their communication preferences at the time of signing to avoid crossed lines between multiple signers/ co-signers. Some landlords or property managers prefer to have a single point of contact, while others are fine to receive communications from all signers. If the landlord prefers a single point of contact, consider who on the lease is best equipped to have those conversations, including their familiarity with the situation, decision-making abilities, available time to connect with all parties and relay information, etc.
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Consider the relationship history
How do they know you?
How familiar are they with your values and habits around finances?
Have they known you in a difficult time, and if so how did they support you?
Have they seen you make a promise and follow through?
Make sure this is someone who you have built trust with, and who has maintained a relationship with you through good times and bad times!
Consider their needs
Do you know what their financial situation is like?
What challenges might they be facing, and how could you provide support (including non-monetary things like helping with odd jobs, fixing or cleaning up something, cooking meals, caring for children/elders/pets, etc.)?
Before asking them to co-sign, try to connect with them just to listen to what's going on in their life.
*Check out our youtube channel for some active listening tips to help them feel heard!
Make a back-up plan
What will you, your housemates (if any), and your co-signer do if someone isn’t able to pay the rent on time?
Think of what actions you could take, share those ideas with your co-signer, and invite them to give input on the plan.
Of course no one wants to be in this situation, least of all your co-signer. Their trust might increase if you have proactively agreed on a plan, just in case.
What if the answer is no?
Thank the person for considering your request and politely move on.
It’s natural to feel upset or have strong emotions when someone declines to co-sign for you. Their reaction might not match yours, especially if their housing needs are different from yours in that moment. Depending on the relationship, they might be able to hold space for your feelings, or a different friend or loved one might be the best person to listen to you and provide support.
Avoid using threats, fear, anger, or pity to try to change their mind. A financial relationship, just like any other relationship, should start with mutual respect and consent. If they feel pressured into the decision now, they may feel reluctant or even refuse the next time you need help.
Need support from a neutral third party to solve your housing-related conflict?
Remember that the WDRC has free Housing Stability conflict resolution services available to tenants, landlords, roommates and neighbors, and we are always happy to help you chart your next steps in a housing-related dispute. For conflict resolution support including mediation, conciliation, or conflict coaching, contact a Housing Stability Case Manager at (360) 676-0122 ext. 115 or housing@whatcomdrc.org