Tenant only gave 1 week notice to break lease?

Question

Hi everyone, I would love some help with this. I have a tenant who still has 8 months left on his lease. He recently informed me that his mother has fallen ill and he needs to move to Texas to take care of her and he would appreciate if I could let him out of his lease early. I told him I understood and was willing to work with him, and told him to give me a written notice of his intention to move out. He emailed me one a few minutes ago that said he will be out by February 9, 2023. That's only a week away. In the state of Florida, I read that a tenant on a yearly lease must give no less than 60 day notice to move out, and is responsible for 60 days of rent. But I also read that the tenant is responsible for rent until a new tenant is found? Which is it?

How do I handle this? He has a $1200 security deposit...do I use that to cover the rent until a new tenant is found? The market has been very slow here for the past couple months, so I don't have much hope in finding a new tenant quickly.

Also, if somehow I rent this house before the 60 days are over, do I refund him the rent? Or prorate it? Hard to find info regarding that situation.

Any advice would be greatly appreciated!

How do I handle this? He has a $1200 security deposit...do I use that to cover the rent until a new tenant is found? The market has been very slow here for the past couple months, so I don't have much hope in finding a new tenant quickly.

Also, if somehow I rent this house before the 60 days are over, do I refund him the rent? Or prorate it? Hard to find info regarding that situation.

Any advice would be greatly appreciated!

Sam C. · Answer

You may not like this but leases are worthless when someone has no money and/or leaves and especially leaves the state. He is moving and there is a 95% probability that he is not giving you any more money. Now you have to ask yourself, how much good money do you want to throw at this?  How important is it for you to get the place back as quickly as possible and as ready as possible to re-rent? So IMHO, get him to put a disconnect request in for the electric (I assume it's in his name) and keep the deposit. Send him a itemized move-out report that includes ALL expenses to re-rent, loss income and credit foe the deposit. Certified is best. And put all your effort into re-renting within a couple of months.

Stephen Dispensa · Answer

So your options here really come down to what was agreed to in the initial lease. In Florida, the standard lease form created by the Florida Association of Realtors along with the Florida BAR (FARBAR Lease) contains a "Liquidated Damages" addendum. If you used a FARBAR Lease, or a custom lease that includes this addendum, it gives the tenant the option to pay liquidated damages up to the amount of 2 months rent (amount is set by the landlord) as a price for breaking the lease early. This is the "60 day notice" you are referring to which isn't actually Florida law or local law.

Without electing to take this addendum, the tenant is actually responsible for the ENTIRE lease if he breaks it early. If his rent is 1200 per month, and he has 8 months left, he is liable for the entire $9,600 he owes you. You could absolutely take him to court and would likely win. Florida courts are far more friendly toward landlords than some states.

However, as a property manager, my recommendation in this case would be as follows. If he has the liquidated damages option, tell him to pay February and you're keeping his security deposit, and let him out of the rest of the lease. It's literally what he agreed to.  If there is no liquidated damages option, tell him to pay for the dates in February that he's actually using and you're keeping his security deposit, and let him out of the lease. You're doing him a huge favor in this case and letting him off the hook for $8,400. You could go the route of court and garnishing wages to get the full 9,600, but honestly with a $1,200 a month apartment it's so easy to find a new tenant in Florida that why go through the hassle?

Whatever you do, make sure you put it in writing. If you're able to come to a deal with the tenant make sure they sign it.

Theresa Harris · Answer

His mother got sick.  Let him out of the lease.  I'm guessing he's not paid full rent for Feb (hopefully he paid for the 9 days he's there).  Tell him you will find a new tenant ASAP, but it will likely take a few weeks, so he's responsible for the Feb rent.  Keep the deposit until he's moved out and use it for any unpaid rent in Feb and damages/cleaning, then return the balance.

Nathan Grabau · Answer

When you said you would work with him, what do you think you were agreeing to? Because you have agreed to work with him, you create a gray zone that is probably not worth a fight for 1-2k. I would begin marketing the property immediately and let him know while you are willing to work with him, you consider that letting him out of his lease early, when you are able to find a replacement. I would see what he says and return the deposit, minus fixes and vacancy cost between 2-10 and when you find a replacement.

If the unit is in great shape, and your market is still hot, I would be generous with him.

I would hold the deposit until a replacement is found and he has moved out, assuming you can in FL. Different states have different rules surrounding how fast you must return a deposit, it is most likely 60 days.

Adam Bartomeo · Answer

@Thomas Harris One of the posts was exactly right... tenants do not have a lot of money saved up so trying to collect on a lawsuit is just a waste of time and effort. The best way to handle it AND the way we handle it is to get him to agree to sign over the full deposit and charge him 1 - 2 months' worth of rent to break the lease. We have built this into our lease so all of our tenants are aware of the expenses involved with breaking the lease. When it comes down to it we try to do our best to negotiate a win-win scenario.

Adam Bartomeo · Answer

@Theresa Harris I don't know if you have much management experience but I have heard EVERY excuse under the sun and have been lied to just as many times. The average turnover costs the owner about $3k and they should not be responsible because a tenant signed a legal contract which they cannot pay. If you did that with a car then they would repo the car and if you did that with a house then they would foreclose. In our business we must treat everyone honestly, fairly, and to the same standard. If you don't you may find yourself in legal trouble because you let one "type" of person out of the lease but not another.

John Morgan · Answer

@Thomas Harris

I would keep the deposit and call it good.

Adam Bartomeo · Answer

@Joshua Ocean Your statement is spoken out ignorance, meaning that you really don't understand or know what a "good" PM does. Its like saying, why would I go to the doctor? I can look after my body better than they can... but yet you go to the doctor when you are sick or have a broken bone.

You are paying for that doctors experience and knowledge. They know more about the human body than you will ever know. Its the same with a good PM. They know renting better then you will ever know... I suggest doing some research. Good luck to you.

Joshua Ocean · Answer

Okay. But whats a pm gonna do? They cant get money from the tenant either. All they can do is update you on the sitiation. And ill look after my prop better than some pm.

Adam Bartomeo · Answer

@Joshua Ocean Its not that you don't have "power"... You can take them to court and probably win but that's not the issue. Its a case of ROI... Do you spend $1,000 to try and recoup $1,000? That is 0% ROI. Or do you negotiate, spend $0 and maybe get $500.

As far as garnishing wages... Can credit card companies, auto lenders, or lenders for real estate garnish wages? No, they send you to collections and repo the item if they can. It is up to YOU to decide who to rent to AND what measures YOU put in place to protect your asset.

If you hate win/win you probably want to have a PM in place so they can negotiate on your behalf. Life happens and people get sick, lose jobs, and have unfortunate circumstances trust upon them.

Tenant only gave 1 week notice to break lease?

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