Tenant Signed Lease, Wants to Annul lease

[Katy Logue]

Have a B property in an A area, had 3 serious inquiries within days of listing. We ended up with the property under 12 month contract on the first showing. This was 6 weeks ago for a lease that starts a few weeks from now. Tenant now wants to annul the lease and get the security deposit back.  I want to work with this tenant to find a solution as this doesn't seem like a great situation. 

My plan is to remind the tenant we have a 12 month contract and I plan to proceed with the lease (ie no promises given). Then I will work in good faith to get the place re-leased ASAP. If the new lease does not begin before or on the same date as the prior date, I will prorate the initial security deposit on a daily basis until the place is leased. I doubt it goes more than a month, but if so then I will expect another month's rent.  As soon as the place has a new tenant sign, I will then work with the other tenant that wants out and addend their lease. 

Is there anything I am missing, doing wrong / illegal, tips? 

[Richard F.]

Aloha,

Hopefully in addition to the SD, you collected the first month rent. Why such a long time period from apparently signing them until actual possession which is still weeks away? We require SD within two business days of approval, and rent must start the earlier of possession, or 15 days from approval, with first month rent paid prior to handing over keys.

Whenever prospective Tenants can "tie up" the rental, but have a long period of time before actually signing or paying, they usually are just continuing to look for something they like better. If they do, you get the sob story...if they don't, they probably will be a PITA for the duration.