Tenant wants to terminate lease mid-way with probable cause in Philly

[Jessica F.]

I am looking for advice for how to proceed if a tenant wants to terminate a lease midway into the leasing agreement without probable cause to leave. This is for an owner occupied duplex. Tenant in question occupies 1st floor. 

The tenant sends a 48hr notice to landlord saying that they would like to leave the premise and can be out of the house by the 1st of the month (rent is due on the 1st of the month). The tenant wishes to move out because they are having problems with their heating system. The homeowner adopted the lease and tenant at closing in September. Tenant has been occupying unit since May and has a one year lease in place. Upon signing her lease agreement, her then landlord told her not to worry about gas utility and to only pay electric. Since tenant moved in during spring, she never had a reason to utilize gas (stove is electric) until a few weeks ago when cold weather started to set in. The house is heated through gas so there is obviously some sort of source for gas for that unit. Tenant notifies landlord that heating is not working in the bedroom only. Handyman comes in and does some work and says it’s fixed. A few days later, tenant comes back and says that gas still does not work in the unit. Landlord attempts to purchase parts and labor insurance for water and heating tanks for the entire house (two units). While attempting to secure an insurance plan, landlord discovers through gas company rep that no account exists whatsoever for the specified unit therefore was unable to purchase the plan. The gas company further notifies landlord that if the gas company finds out about this, they will come out to the unit and cut off gas immediately because the tenant is utilizing their service without a service agreement or contract in place.

Landlord/homeowner was under the impression that the tenant was paying all utilities with the exception of water. Apparently, this was not the case. Landlord has no idea where the heat source is coming from. Tenant wants to assign blame to landlord because she “did not know” anything about this. Bottom line: landlord tells tenant that if she wants her heating unit fixed, she has to sign up for an actual gas account because if not, the gas company has every right to cut her off for having used it without permission. Landlord believes that previous homeowner lied or misled tenant to believe that she would never have a gas bill when it actually seems like he did something (perhaps illegally, not sure) and gave tenant some sort of hook-up to make it appear that tenant does not have a real gas bill. This was only called into question because tenant is now seeking repairs for one of heaters not working. If she cannot provide proof of an account, gas company will not come fix the issue.

Tenant thinks that landlord is being unfair and thinks landlord wants her to pay more money when in actuality; the landlord is just going by what’s written in the lease and gas company protocol. Tenant does not want to pay “another bill” so is choosing to leave under her own reasons. The landlord cannot be held responsible if tenant did not read carefully before signing previous lease with original landlord or asking the necessary questions.

Now that the tenant wants to leave by Monday, what is the penalty for giving only 48hrs notice? Landlord told tenant that she has to give a 30 day notice in writing if she plans to leave. Tenant still has about 5-6 mos remaining in lease. Landlord is still expecting a rent check from tenant on Dec 1st. I spoke to another homeowner in Philadelphia who mentioned that if a tenant wants to leave without probable cause that puts the landlord at fault that they would have to pay all of the money remaining in the lease (5-6 months worth of rent) because the landlord left the unit in good living condition. Is this proper protocol in the state of Pennsylvania? Has anyone had a similar issue? If this is proper protocol, how does one go about requesting such funds? Landlord has done everything within their power to fix heating issue for tenant but tenant refuses to call gas company. In other words, tenant would rather pay a much higher rent elsewhere than take on one additional bill from gas company. 

[Elesha S.]

Keep in mind that landlord tenant law in PA may spin out a little different in Philly county. The law is the same, the judges and parties are not.  Philly landlord tenant court is certainly a unique version of small claims court. :-)  I was a mediator there during and after law school.

First this is not legal advice - just my required disclaimer.  But my suggestion to you is that although the law allows certain remedies for you, the practical solution might be different.  In a normal situation where the unit is fully habitable and everything is working, it is true that the landlord could put the tenant on the hook for the remainder of the lease -- subject, of course, to the landlords diligent efforts to mitigate damages (i.e. lease the unit to someone else).

However, there is obviously some question here about a) whether the heat works and b) who has the responsibility to pay for it.  In cases of loss of heat, my opinion (from watching lots of cases) is that judges in housing court here are not forgiving of landlords who do not provide working heat for tenants regardless of the cause.  Her not signing up for an account (if that was required in the lease) is another issue since there is a question of whether even if she had the account her radiator/whatever equipment may not be working. 

In either case it doesn't much matter.  Practically speaking, because of the other possible breaches going on with this tenant, it would be better to take her up on her offer to move, keep last month's rent if you have it, check for damages and return the remainder of the security deposit if any, and just move on.  The reality is that even if you spend your time and money to get a judgment (supposing you win, of course) you will likely never see any money.

In addition to having a buy out/early termination clause (which was your initial question) in your new lease, we also have a clause in our lease that states if the tenant is unable to get service from PECO/PGW/etc. at the outset of the lease, then the entire lease is cancelled and tenant has to find a new place.  Then after you lease, follow up with appropriate utility to be sure that the tenant has moved service into his/her own name.  I say this because my suspicion is that even if she wanted to get a PGW account, she may not be eligible if she has back bills etc.

See this as a blessing in disguise.  If she does have that many folks and pets living on the property, letting her and her accompanying drama go at her request is basically the definition of the perfect situation.  It allows you to really get in the unit, clean it up, get a better lease, and your own tenant that you screened yourself.