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Updated 11 months ago on . Most recent reply

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Mohit Arora
  • Austin
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Tenant wants to break the lease before lease start date

Mohit Arora
  • Austin
Posted

I have rental property with signed lease (through Zillow) with starting lease date within a week. However the tenant is telling me they have personal issue and wants to move out of the lease or asking me options to break the contract. 

I checked the lease created through Zillow that does not show up any option for reletting but what I am aware (done it few times when one of my other property was managed by a property manager) is tenant could pay reletting fees (typically one month rental) that allows property to be re-listed. Tenant will continue to pay for utilities and any difference (or loss in rental) if home is leased for lower monthly rent than current lease term. 

I called Zillow and they told me they don't handle lease cancellation or changes but suggested to contact local attorney (I am in Texas/Austin). 

a) Take some penality and allow tenant to break the lease. 

b) take re-letting fees, list the house again and current tenant is bound to honor until it gets leased.

For both a) and b) I will still have to contact attorney as Zillow does not let me cancel the lease but only mark the lease cancelled once it is done. 

I would prefer b) for obvious reasons but let me know if there are other options. 

Appreciate any help/advice. 

Thanks,

Mohit

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Chris Seveney
  • Investor
  • Virginia
15,695
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied

@Mohit Arora

Let’s also look at reality

Tenant doesn’t move in and then you have to “evict” a tenant not there and lose rent and try and collect something that doesn’t exist

Let them out of the lease, potentially keep the deposit and move on

This is why I also recommend a property manager - they typically will save you in the long run

  • Chris Seveney
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7e investments
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