Tenant wants to break contract and has found a replacement

[Kelly Chang]

Hi! Thanks in advance for your responses!

I have a tenant who is about 6 months into the contract and they are purchasing a home and would like to break the contract. They have found a replacement and I'm in the process of vetting them. If that all goes well, what is the best way to handle the existing contract? 

1. Should I terminate the existing contract and start a new one with the new tenant? Does this obligate me to have the rental move-in ready?

2. Is there a sub-lease agreement that I can add on as an amendment to the existing contract? 

Or is there a better way to do this that I'm not thinking of.

Thanks!

Kelly