Tenant wants to break lease and has a friend to inherit lease...

[Sam Leon]

So I got a phone call from a tenant who is six months into a one year lease, she is moving in with a boy friend.

Lease has an early termination fee of two month's rent.  I am holding a security deposit and last month's rent totally two month's worth of rent.

Now, she said she has a buddy who would love to move into her place, and is ready to move whenever she moves out, even same day.  Her "buddy" is willing to sign a lease for the balance of the lease term, or a new one year lease.  She wants me to waive the early termination fee because she found a replacement tenant.

Now, I said I am glad you found a candidate, but there is no way I can turn around and rent to her the same day.  I need to go through the entire apartment and evaluate what needs to be cleaned and repaired after she moves out.  I need to screen the new tenant.  I may raise rent.  I may have to repaint and/or change out the blinds.  If all that takes two weeks then she is responsible for the two weeks of lost rent.

What is your experience with a replacement tenant recommended by a tenant breaking a lease?  Good idea?  Bad idea?  Anything I should watch out for?

[Trent Honea]

Screen the friend as though they walked in off the street.  Treat the new tenant as new and separate.

Don't try to make that extra fee just for the sake of the fee, though. If the friend meets your criteria, the tenant just saved you the marketing time and money. The new one might even move in as-is, which would save the cleaning and repair costs.  BUT ONLY IF they meet your screening criteria.  That's my 2-cents worth.

Depending on the state and in some cases even the city, you may have different requirements.  If the two months rent is standard for your area that's great.  If not, beware and as Jason said, check with your lawyer.

I typically have a 1 month in lieu of notice clause, or sometimes even the tenant is responsible for all rent until the unit is re-rented.

@Jason - It's nice to invest in a landlord-friendly state!  Here in Texas, it can vary by town.  Dallas is pretty renter-friendly.  Fort Worth is more landlord-friendly. I've heard Austin can be rough, but most of the state is neutral.  A common eviction hearing has the judge ask the tenant "did you pay or not" and ruling against them unless there are some very exceptional conditions.  That is, unless the landlord did something they should not have, like changing the locks or cutting the utilities, or not giving proper notice.