Tenant breaking lease

[William C.]

I have a tenant who wants to move out 5 months before end of lease due to job relocation.  Based on the lease there is a two months penalty for breaking lease.  The tenant asks whether the penalty can be waived if he find a new tenant.  Should I let him do so and waive the penalty?  Thanks for any comments!

[Jennifer L.]

You would still have to screen that tenant to your satisfaction. I would advertise my rental as usual, but encourage him to send people he recommends your way. If it were me, I would talk to the tenant about mitigating losses. Get him to cooperate with facilitating any repairs/painting/ etc that need to be done while he is still there. If it is ready to show, then show the place to prospective tenants while he is still there. I'd charge the penalty, but then return any money that is recovered after it is rented. So for instance, if there is a two week vacancy, he'd get back 1.5 months of the penalty. I'm sure there are people who would take a hard line approach, but I figure the penalty is there to protect your income stream and to dissuade lease breaking.