My tenant wants to break their lease | TigerDroppings.com

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Honkus
New Orleans Saints Fan
S County
Member since Aug 2005
34446 posts
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My tenant wants to break their lease



2 months into a 2 year lease.

What are my options as landlord? I'm willing to put it back on the market, but I fully expect the full rent until I find a suitable tenant.

Also, am I entitled to the security deposit since they are breaking the lease?

TIA money board.







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Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18480 posts
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re: My tenant wants to break their lease


quote:

2 months into a 2 year lease.

What are my options as landlord? I'm willing to put it back on the market, but I fully expect the full rent until I find a suitable tenant.

Also, am I entitled to the security deposit since they are breaking the lease?

TIA money board.


Would need to see the lease agreement you had them sign to determine what you can legally charge for an early termination.






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RunningBlake
LSU Fan
Member since Aug 2011
2068 posts

re: My tenant wants to break their lease


Keep the deposit and find A new tentant





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GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
120 posts

re: My tenant wants to break their lease


quote:

what you can legally charge for an early termination


In most leases, the tenant is responsible for the remaining balance of the lease term, in this case 22 months of rent. It would be foolish for a landlord to negotiate away what is a pretty standard lease provision from a boilerplate lease.

The only exception I could see would be where the lessee prepaid the entire lease term up front, but the tenant would not get any refund either (for the unoccupied portion of the lease).

The security deposit will stand first to pay for any damages to the unit, once you both to do a walkthrough, and then the landlord can take the remaining amount to offset the balance due for the remaining lease term.

The landlord has a duty to mitigate his damages by actively seeking new tenants, but the current tenant is still obligated to pay you in the interim.

Edit:

You can also (threaten to) report the debt to credit reporting bureaus for the amount outstanding if they don't make good in the interim.



This post was edited on 7/12 at 8:50 pm


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Honkus
New Orleans Saints Fan
S County
Member since Aug 2005
34446 posts
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re: My tenant wants to break their lease


quote:

the tenant is responsible for the remaining balance of the lease term, in this case 22 months of rent


this is the way I read it, too. so I guess I will just make them to pay full rent until I can find a suitable replacement. once I do, perform a walk-thru with them and take out of the deposit any damages they may have caused, and any costs I incur in finding a replacement.



This post was edited on 7/12 at 11:36 pm


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LSURussian
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Baton Rouge
Member since Feb 2005
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re: My tenant wants to break their lease


"ABANONMENT"???





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Honkus
New Orleans Saints Fan
S County
Member since Aug 2005
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re: My tenant wants to break their lease


(no message)


This post was edited on 7/12 at 11:36 pm


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6917 posts

re: My tenant wants to break their lease


Assuming this is residential, I'd keep the sec deposit and make him pay rent until 30 days after new tenant is found. Two year residential lease is too long IMO, if a year was signed he may have 2nd thoughts on breaking it.





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cwill
New Orleans Saints Fan
Member since Jan 2005
25825 posts

re: My tenant wants to break their lease


Your lease provides you the right to demand rent but you should negotiate a settlement and seek new tenants....the other route USA headache. Let them know you have them by the balls, appear unreasonable, then settle. GLTY





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chuckitdeep
LSU Fan
Member since Nov 2008
605 posts

re: My tenant wants to break their lease


My experience has been to let it go and just keep the deposit. My rentals are low end. 99% of mine have no credit and wouldn't care if I reported it.





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Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18480 posts
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re: My tenant wants to break their lease


quote:

Your lease provides you the right to demand rent but you should negotiate a settlement and seek new tenants....the other route USA headache. Let them know you have them by the balls, appear unreasonable, then settle. GLTY


Even though he's a dick with ears, cwill is correct.






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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
9348 posts

re: My tenant wants to break their lease


quote:

I'd keep the sec deposit and make him pay rent until 30 days after new tenant is found.


Is that legal? I always thought that in a standard lease, you can only collect rent from previous tenant until you find a new one. Also, if you're still collecting rent from him, why would you be entitled to the sec deposit?






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Wasp
LSU Fan
Off Highland rd.
Member since Sep 2012
468 posts

re: My tenant wants to break their lease


Important questions to give a fair answer are:
How long did it take to rent?
Were concessions made for the tenant?
What reason does he have for breaking lease?






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chuckitdeep
LSU Fan
Member since Nov 2008
605 posts

re: My tenant wants to break their lease


The lease says forfeit of deposit if they break the lease agreement.





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Honkus
New Orleans Saints Fan
S County
Member since Aug 2005
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re: My tenant wants to break their lease


quote:

cwill
quote:

Your lease provides you the right to demand rent but you should negotiate a settlement and seek new tenants



I'm just worried I'm going to let them out of the lease & it's gonna sit there another 5mo. , or more. I'm building a new house out of state so I was counting on them to honor the lease.



This post was edited on 7/12 at 11:37 pm


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Wasp
LSU Fan
Off Highland rd.
Member since Sep 2012
468 posts

re: My tenant wants to break their lease


Then I suggest talking to him, letting him know his legal obligation and that you were trying to help them. The only problem is that there is not much recourse. People rent houses because they generally cant afford to buy a house, which means you are not going to get anything from them.

If you are worried about the five months finding a new tenant. Figure out why they are moving out and make an agreement for the to stay for another 4 months at cheaper rent but you can also show the place trying to rent it.






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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22608 posts

re: My tenant wants to break their lease


I always recommend to my clients to put a buyout clause in their lease that they can stomach. Usually it is 2-3 months. In other words, its clear up front that if the tenant wants to break the lease that's fine. But he will be paying 2-3 months of rent after giving 30 days notice.

Of course, that's on what I assume is a year long lease.



This post was edited on 7/12 at 10:50 pm


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Joshjrn
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Baton Rouge
Member since Dec 2008
6319 posts
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re: My tenant wants to break their lease


I will vouch for have a stipulated damages clause as well. You can ask for the full rent for the remainder of the lease until you are blue in the face, but no city court judge/justice of the peace is actually going to give it to you. Ink in a three month buy out, and save yourself the aggravation of having to prove damages and/or listening to sob stories.


This post was edited on 7/12 at 11:03 pm


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tketaco
LSU Fan
NOLA: Lake View
Member since Jan 2010
8822 posts

re: My tenant wants to break their lease


You talk to Vigs?





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Overbrook
Tulane Fan
Member since May 2013
2156 posts

re: My tenant wants to break their lease


quote:

In most leases, the tenant is responsible for the remaining balance of the lease term, in this case 22 months of rent. It would be foolish for a landlord to negotiate away what is a pretty standard lease provision from a boilerplate lease.

Landlords have a duty to mitigate damages. That would never be upheld, no matter what the lease says.
Same is true in all contracts. IF it makes business sense to breach it, you breach it; by making the other party whole, some parties are better off, no party is worse off, and commerce expands.



This post was edited on 7/14 at 2:04 pm


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