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  1. #1
    Join Date
    May 2012
    Posts
    4

    Default How Does Proration of Rent Work

    My question involves landlord-tenant law in the State of: Connecticut

    I bought a home from a bank with the tenant in place. Tenant was on a month to month lease. Payments were being sent to a management company hired by the bank.

    I was informed verbally by the payer that the check for the months rent would be held and payed to me (I closed on the 3rd of the month). The payer then forwarded the entire payment for the month to the previous owner (management company for bank). Both the management company and bank are unwilling to prorate any portion of this check, add to that the payer is also unwilling to cooperate any further regarding putting the money in my hands.

    Do I have any path to recoup this money? Can not find anything in statutes regarding proration paid to new owner.

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,084

    Default Re: How Does Proration of Rent Work

    Give us the relevant dates, and the explanation the management company gave for not wanting to prorate the rent. I presume you mean that the tenant paid the rent for the month you took ownership and you want rent from the third through the end of that month.

  3. #3
    Join Date
    May 2012
    Posts
    4

    Default Re: How Does Proration of Rent Work

    Quote Quoting Mr. Knowitall
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    Give us the relevant dates, and the explanation the management company gave for not wanting to prorate the rent. I presume you mean that the tenant paid the rent for the month you took ownership and you want rent from the third through the end of that month.
    I closed on 4/3/2012. The payer is a third party, does not reside in the home, but is responsible for payment. Payer was informed weeks prior I would be closing on the home and agreed to hold payment in order for proration. Met with payer on the 8th of the month to go over the new lease with the tenant. Payer again informed me they would be mailing payment to me for the month of April.

    Payer calls the next day and states he had to mail payment in full to previous owners (bank) management company.

    I get in touch with the management company who first informs me they will return payment. I ask if they want the payer to put a stop payment on the check in the hopes of not having to chase a paper trail. They declined and said they would find it.

    Few days later (maybe the 15th?) I call the check status and am told by the person directly responsible for the the management of the property that because the house was still owned by the bank on the 1st of the month, that they are entitled to the entire months rent and would not be returning anything.

    I forwarded any and all info to my lawyer, but the outlook on him acting on it is grim. This seems to be something I need to try and handle myself.

  4. #4
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,084

    Default Re: How Does Proration of Rent Work

    Residential or commercial?

  5. #5
    Join Date
    May 2012
    Posts
    4

    Default Re: How Does Proration of Rent Work

    Quote Quoting Mr. Knowitall
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    Residential or commercial?
    Its a duplex 2 family

  6. #6
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,084

    Default Re: How Does Proration of Rent Work

    So we're talking about one of two residential tenants in a duplex, or the only tenant who is renting one half of the duplex (the other half being unoccupied)?

    The management company's duties are defined by its contract with whomever employed it, not to you - it's not your agent. Whether or not their interpretation of their contract is correct, it does sound like the management company is interpreting its contract with the bank as requiring it to forward the money to the bank. That puts you back in the position of contacting the bank and asking them to forward your share of the rent for the month at issue. You will need to, in turn, review your own contract with the bank to determine if you waived the right to recover that rent from them as part of your purchase agreement.

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