How to add early termination fee's that stick in NYC?

How to add early termination fee's that stick in NYC?

Cory MeliousPro Member
Investor · Hunterdon County, NJ · Member since 2016 · 42 posts · 5 votes
I have a tenant leaving early because she needs to go deal with family in CA. It's stinks but I totally understand. However, it's annoying because that tenant just moved in on the previous tenants broken lease due to a job change.

This is particularly annoying because the HOA has a large fee and requirements for new tenants, and they notoriously take weeks to complete these requirements.

I know many people talk about adding early termination fee's into the lease. How does one go about doing that, where it actually sticks? This is NY state after all, the state where tenants have all the rights, and landlords have none of the rights. And for some effed up reason the HOA's have more rights than the landlords. smh.
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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Cory Melious you would just add a clause with specified damages that says they can terminate by paying x amount and giving written notice.   I am not sure if it would stick if the amount is considered excessive but I don't know what that would be in NY. 

  • Cory MeliousPro Member
    OP
    Investor · Hunterdon County, NJ · Member since 2016 · 42 posts · 5 votes
    4y

    Any ideas where to find such a clause?

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y

    Hard to judge what might stick and what not. I suspect if the amount were low it might not even be contested. We are LL's in a very tenant friendly state we just ask for 30 days notice and many times we don't even get that. But no problem as long as this gig keeps me from ever having to work at Walmart I am a winner!

  • Cory MeliousPro Member
    OP
    Investor · Hunterdon County, NJ · Member since 2016 · 42 posts · 5 votes
    4y

    Yeah I hear you. It's not so much the tenant wanting to leave, it's more dealing with the management company bs that comes with replacing them. 

  • Jason LeePro Member
    Real Estate Agent · New York, NY · Member since 2015 · 401 posts · 235 votes
    4y

    Is this unit in NYC? What lease did you use? Tenant typically has to pay the rent no matter what so they should be continuing to pay the rent until you find a new tenant. There should be no vacancy and in this market the tenants should be paying all the condo application fees.

  • Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
    4y

    Security deposit normally goes towards early termination or the tenant has to handle the rest of the payments until the end of the lease. Make sure you use the right lease agreement form. Feel free to contact me, and we'll share the lease agreement that we normally use. It also can be modified. 

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