Terminating lease in Tennessee but tenant paid upfront

Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes

4y

You have to make reasonable efforts to re-rent. As soon as you do, the existing tenant is no longer responsible for the rent, utilities and/or other things under the lease. You may be able to charge for reasonable marketing expenses, leasing fees, if any, etc.

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Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

4y

Let him move and tell him you will find a new tenant ASAP, but until you do, he's responsible for the lease. I'd also charge him the full price-no 10% discount as he didn't stay the full 30 months. Hopefully you worded the lease such that the 10% came off the back end (eg last week was rent free).

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

4y

Quote from @Joshua Steven Ferrell:

One more reason why you shouldn't offer discounts. Too many renters use that as a tool to pay less or get in ahead of other renters, then they pull the rug out from under you.

The basic rule of law is that the Tenant is responsible for the terms of the lease, period. However, you have a responsibility to find another renter as quickly as possible to reduce the impact on the departing tenant. Tell him he's on the hook until someone else takes over his lease.

I also recommend you tell him he forfeits the discount because it was contingent on him staying for three months. That means he owes you 10% more for August and for every other day until the new Tenant takes over.

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

4y

Quote from @Joshua Steven Ferrell:

Hello all,

I have a situation where I rented out a a furnished rental unit to a new tenant for 3 months. We signed a lease and the term length is from August 1, 2022 to October 31, 2022.

I collected a security deposit and the tenant paid me 100% of the rent upfront in exchange for a 10% discount for his stay. Now he is wanting to leave at the end of this month and be refunded for months 2 and 3. He signed a lease with us while he was looking for a house to buy and he found one quicker then he originally thought he would. Therefore, he want to get out of the lease.

In my lease, the language I have written for termination is "Any notice to terminate this tenancy must comply with the applicable legislation of the State of Tennessee (the "Act")." I have been using a generic template from www.lawdepot.com and i'm sure this is not the best language for my lease, but I am still learning.

I want to be fair, but sometimes our house doesn't rent very quickly because it is a monthly furnished rental. I have listed the property back online and I am trying to find a renter but haven't had any luck yet.

Can anyone point me to the actual laws that describe what I'm legally obligated to do as the landlord? Does anyone have any advice on how to handle this situation?

I would do what others mentioned. I would also get an attorney to write an agreement and on these types of leases there is NO refund if terminated early.

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Blake Johnson

Real Estate Consultant · Franklin, TN · Member since 2022 · 13 posts · 7 votes

3y

Quote from @Joshua Steven Ferrell:

Hello all,

I have a situation where I rented out a a furnished rental unit to a new tenant for 3 months. We signed a lease and the term length is from August 1, 2022 to October 31, 2022.

I collected a security deposit and the tenant paid me 100% of the rent upfront in exchange for a 10% discount for his stay. Now he is wanting to leave at the end of this month and be refunded for months 2 and 3. He signed a lease with us while he was looking for a house to buy and he found one quicker then he originally thought he would. Therefore, he want to get out of the lease.

In my lease, the language I have written for termination is "Any notice to terminate this tenancy must comply with the applicable legislation of the State of Tennessee (the "Act")." I have been using a generic template from www.lawdepot.com and i'm sure this is not the best language for my lease, but I am still learning.

I want to be fair, but sometimes our house doesn't rent very quickly because it is a monthly furnished rental. I have listed the property back online and I am trying to find a renter but haven't had any luck yet.

Can anyone point me to the actual laws that describe what I'm legally obligated to do as the landlord? Does anyone have any advice on how to handle this situation?

Recommendation #1: Have a lease written specifically for you and your business needs. Not all lease agreements are created equal; the free/cheap(er) leases found on the internet are generic and sometimes backs you into a corner when you have to enforce them.

Recommendation #2: Speak to an attorney that understands tenant/landlord law. I've added clauses to my lease (for this very reason) whereas the lessee is responsible for two things should they wish to terminate; 1) a 60-day notice to move-out and 2) a termination fee equal to 1.5 months due at move-out

Recommendation #3: In the future, avoid payment in full in exchange for a discount. You could get into Fair Housing issues if you don't offer the same discount/terms to everybody who inquires. Give them the OPTION to pay in full, but don't reward this with a discount.

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Terminating lease in Tennessee but tenant paid upfront

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