Early Termination - Advice Needed

[Alexander Witt]

Hi all! I am a amateur landlord who is looking for opinions on what others would do and have done in this situation. For context, I purchased a duplex in 09/2020. Lower tenants have occupied since 11/2020 and upper tenantt has occupied since 04/2022, signing a one year lease agreement. 

The upper tenant told me today 09/20/2022 he has accepted a job out of state and will only need to occupy the upper through 10/2022. He was inquiring on whether he is able to end the lease, sub lease, and or pay a portion of the remaining lease.

Off the bat I would say ending the lease cut and dry is not an option. Neither is sublease. That leaves me with him buying himself out of the remaining lease, or paying monthly until end of term (04/2023). 

What would you recommend?

Thanks in advance,

Alex.

[Nathan Gesner]

Quote from @Alexander Witt:

My #1 recommendation: know your lease and the law before the problem exists, not after. 

The tenant is legally obligated to fulfill the terms of the lease. Your law says you have a responsibility to market the property and try to find a replacement tenant, then you can only charge the departing tenant up until the new tenant takes over.

However, you can negotiate something with the tenant, if the law allows. I offer my tenants an early termination process, wherein they give me 30 days notice, a termination fee equal to one month of rent, and they allow me to market/show the rental during their final 30 days. If they meet these requirements, I will let them out with no further penalties and a good Landlord reference. I still do a move-out inspection and handle their deposit like an ordinary termination.