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Updated about 1 month ago, 11/04/2024

User Stats

2
Posts
1
Votes
Kayla Shock
  • Property Manager
  • Sonoma County, CA
1
Votes |
2
Posts

Landlord wants to terminate lease early

Kayla Shock
  • Property Manager
  • Sonoma County, CA
Posted

Hello Fellow Property Managers,

I started my property management company earlier this year and currently manage several properties in Sonoma County, California. I have a landlord who wants to terminate a 12-month lease early so they can move back into the property. Is this possible? What is the process? I have been researching this all day and keep getting different answers. I appreciate any help you can provide.

Thank you,

Kayla

User Stats

14,320
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11,003
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Theresa Harris
Pro Member
#3 Real Estate Horror Stories Contributor
11,003
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14,320
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Theresa Harris
Pro Member
#3 Real Estate Horror Stories Contributor
Replied

Why not reach out to another PM in the area and ask them for advice?  It will be specific for your area.

  • Theresa Harris
  • User Stats

    41
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    24
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    Diran Deukmajian
    • Contractor
    • San Diego, CA
    24
    Votes |
    41
    Posts
    Diran Deukmajian
    • Contractor
    • San Diego, CA
    Replied

    From what I have read, as long as both parties agree to terminate the lease, without any penalties, it should be ok. All that's due is the security deposit, for you to return as long as no damages to the property. 

    I also understand you can charge them a certain amount as a penalty....1 month rent to cover the downtime for finding a new tenant. 

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    User Stats

    1,649
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    960
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    Adam Bartomeo
    Property Manager
    Pro Member
    #2 Managing Your Property Contributor
    • Real Estate Broker
    • Cape Coral, FL
    960
    Votes |
    1,649
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    Adam Bartomeo
    Property Manager
    Pro Member
    #2 Managing Your Property Contributor
    • Real Estate Broker
    • Cape Coral, FL
    Replied

    Of course it is possible. First, both parties have to agree to terminating the contract and then they need to sign a termination agreement. The problem is that both parties need to agree. When a tenant wants to break the lease, we charge them a lease break fee. More than likely the owner will have to entice the tenant to move by offering them some compensation.

    business profile image
    Bartomeo Property Management
    4.7 stars
    92 Reviews

    User Stats

    8,265
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    4,858
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    Drew Sygit
    Property Manager
    Agent
    #2 Managing Your Property Contributor
    • Property Manager
    • Royal Oak, MI
    4,858
    Votes |
    8,265
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    Drew Sygit
    Property Manager
    Agent
    #2 Managing Your Property Contributor
    • Property Manager
    • Royal Oak, MI
    Replied

    @Kayla Shock doubt it can be done unilaterally.

    So, what is the owner willing to entice the tenant with to agree?

    business profile image
    Logical Property Management.
    5.0 stars
    1 Review

    User Stats

    60
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    15
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    Arvand Sabetian
    Property Manager
    15
    Votes |
    60
    Posts
    Arvand Sabetian
    Property Manager
    Replied

    As others have already stated, you would need to get the tenants to agree. A termination agreement with a defined move out date. The landlord needs to provide just cause for wanting to terminate an existing lease. This would be considered a no fault just cause eviction since it's based on the landlord's actions--wanting to move back into the property. The reason should be communicated to the tenants.

    Since this is a case where the landlord wishes to terminate the lease early, the landlord may want to consider offering a cash incentive to the tenants.

    If the tenant doesn't agree, they're legally allowed to remain tenants until the remainder of the lease. Make sure to the landlord is aware they will need to issue a 30/60 day notice prior to the lease expiring.

    • Arvand Sabetian
    • (415) 688-6660
    business profile image
    Ziprent
    4.8 stars
    378 Reviews

    User Stats

    2
    Posts
    1
    Votes
    Kayla Shock
    • Property Manager
    • Sonoma County, CA
    1
    Votes |
    2
    Posts
    Kayla Shock
    • Property Manager
    • Sonoma County, CA
    Replied

    Thank you everyone for the advice/recommendations! I also spoke with a landlord/tenant attorney over the weekend, who confirmed the same. I informed the landlord of their options. Hopefully, the landlord and tenants can mutually agree on an early move-out and fair compensation.