Suppose that Graham is the owner of a small rental home near the campus of a major state university.
Suppose that Graham is the owner of a small rental home near the campus of a major state university. For the past year, Graham has leased the home to a college student named Sparky under a written lease agreement that provides that the termination date of the lease is May 31. Graham has been frustrated all year at how Sparky has taken care of the home, pinning ugly sports posters to the walls and frequently eating pizza and other greasy foods on the living room carpet. However, Sparky has always paid his rent on time. When May 31 arrives, Graham receives a rent check from Sparky in an envelope that reads “June Rent Payment.” Considering you to be a legal expert, Graham contacts you and asks what to do. “I’m definitely not going to sign another one-year lease with Sparky,” Graham explains, “but I don’t have a new tenant lined up yet to lease the home so it would sure be nice to collect some rental income in the meantime. If I go ahead and cash Sparky’s rent check, are there any potential downsides? I think I can find a new tenant within a few days that would be willing to move in right away. If I do, can I just give two thirds of the June rent back to Sparky at that point and tell him that he must vacate the premises by June 10? After all, our lease agreement clearly states that the lease is over on May 31.”
How would you respond to Graham’s questions, and why?
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