Early Termination Options

[Justin Wallman]

Hello! How is everyone treating early lease termination options?

1. We currently have a “buy-out” option which is equivalent to 2 months rent. Once the tenant relinquishes the keys (all the move-out requirements are completed and turns over the property) they must pay the amount at that time. This works well and I wish more people selected this option.

2. We have a “Re-Let” option where the tenant continues paying the rent, utilities, etc. while we try to relet their term. Sometimes they still are occupying the home (most times they purchased a house and vacated the property). We charge $400 for this service but do not collect it up front but simply itemize it on the security deposit itemization form.

We are finding that we are getting bombarded with relet requests. This adds to more houses to rent than initially anticipating, more tracking, etc.

At the very most, I can require the relet charge up front before placing the home back on the market? I even thought about not having it in my tenant handbook at all