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Updated about 1 year ago on . Most recent reply

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Cory St. Esprit
  • Investor
  • Pittsburgh, PA
43
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88
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Tenant Wants to Break Lease Early

Cory St. Esprit
  • Investor
  • Pittsburgh, PA
Posted

We lease a small commercial space to a non-profit to use for their thrift shop. They serve veteran women who deal w/ substance abuse and homelessness. They were a tenant when I purchased the building and we all signed an Assumption of Lease under new ownership. Tenant just informed me they plan to vacate the property tomorrow (so, 24 hours notice) due to "the business growing and the space now being too small for their needs." They have a lease in place through 9/30/25 (so about 19 more months). My lawyer and I have already looked over the lease in the past and there is zero clause for breaking the lease early. By her assumption, they need to pay up. We knew the tenant was kind of thinking about moving and we let them see about finding another business to sublet (they couldn't find anyone). 

I'm thinking of suing for the $28,500 in rent we should receive in rent...but they're playing the "we're a non-profit serving veterans..." so either I am out $28,500 or I sue and become the guy who hates women veterans. My main gig is I own 28 Subway restaurant franchises, including in this town and if that's the rumor they want to spread, I'm fearful of the fall out to my restaurants. Thoughts, ideas?

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Theresa Harris
#3 Managing Your Property Contributor
11,201
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Theresa Harris
#3 Managing Your Property Contributor
Replied

It doesn't matter who they are, they can't expect to break a lease with 24 hours' notice and not pay something.  I'd tell them they need to give proper notice-if that isn't in the lease, then check state laws (30-90 days).  You can advertize and try to find a new tenant sooner in which case as soon as the new tenant moves in, the old one stops paying rent (if it is before the 30-90 days is up).

  • Theresa Harris
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