Renter wants to leave because of neighbor

[Michael S.]

Hi all,

I plan on talking to my attorney eventually, but wanted to ask this question on the forums to help brainstorm before I go on the clock with the lawyer.

My tenants (unmarried man and woman) recently moved into one of my rentals 2 months ago. They came during a slow time in the year, so I lowered the rent slightly below market value ($1200 vice $1250).

After moving in, they realized that the neighbor across the street is the boss of her husband whom she is separated from. They now want to relocate because they feel uncomfortable. My first response was to tell them that this is not a valid condition to violate the lease that they signed.

That being said, I am considering what my criteria would be for them to end the lease. I live 5 hours away and manage the place myself, so moving in a new tenant is a large hassle for me. However, this time of year is much busier for rentals and I might be able to get a better tenant at a higher rental rate.

What is the right way to start the negotiation regarding a "buy-out" of the lease? The way I see it, they have no legal reason for breaking the lease. However, if they just move out I will still have to find a new tenant without any extra cash in my pocket. However, if I start saying things like "you can buy out the lease by paying an extra $1200" that may give them the wrong impression and make them more likely to leave.

Thanks for your input.

[Andrew Syrios]

It would be a good idea moving forward to have a lease breaking fee written into your lease. There are often legal requirements, for example, in Missouri, you can't charge more than 3 months rent and you can't double rent the property (in other words, if you charge 3 months rent and then re-lease the property in 1 month, you have to rebate the remaining 2 months). Check on the law in your state and then add it to your lease and offer that to the tenants if they insist on moving.