Understanding Lease breaking fee

[Tanim J B.]

Can you please help with General understanding for early lease termination.

If Lease says,

1. Tenant must pay early termination fee. equal to 1 month rent.

2.Tenant will continue to pay rent and utilities until a replacement tenant is located.

As per this Landlord will get extra 1month rent if someone breaks the lease, is this how it works?

[Richard F.]

Aloha,

Local law may vary, but in my opinion, you pay the equivalent of one month rent for early termination, period. This is the fee for doing so. You also are responsible to pay pro-rated rent and utilities until an equally qualified, new tenant takes possession. Most jurisdictions do not allow "double dipping" with regard to charging rent, so if the new tenant starts on the 16th, you would be responsible for the 1st through the 15th, on a pro-rated basis. Pro-rates are normally calculated by dividing the normal monthly rent by 30, regardless of how many days are actually in a particular month. 1/30th times 15 days for you, and, for this month of March, 16 days for the new tenant.

The LL is not getting an "extra" month of rent, he is collecting a penalty from you for not fulfilling the contract that you signed.