Investor · lehigh valley, PA · Member since 2014 · 242 posts · 23 votes
Hello
I have a tenant who signed a 1 year lease and it renews for another year at expiration without 30 days notice, not month to month. I clearly told them at the signing and also stated in the lease.
It renewed on 4/1/16 for another year. I get a call today and he said he is losing his job and cannot afford the place and wants out.
How would you handle this situation? I have last month rent and security. Last month rent is for the 11th month of the lease expiration and clearly stated in the lease.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
10y
If it were me I would let him move and just re-rent it. Life happens. Be glad he wants to leave. Some tenants in his position would try to stay for as long as they could without paying until they were evicted and forced to leave.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
Let them out, but have them sign an agreement that you will put the place up for rent and try to rent it, that the security deposit and last months rent will be held until the place is rented, if you can not find a tenant in the term of the original lease that they will be responsible for paying till the remainder of their original renewed contract. but make an effort to advertise it and show that you are advertising the place.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
10y
If it were me I would let him move and just re-rent it. Life happens. Be glad he wants to leave. Some tenants in his position would try to stay for as long as they could without paying until they were evicted and forced to leave.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
Let him go. I think you could leverage his need to get out to get the place rent ready and shown quickly. Someone who works with you because they need to get out can be an asset. If you find a new tenant just charge the vacant period to the old one and any early term fee.
I have a tenant who signed a 1 year lease and it renews for another year at expiration without 30 days notice, not month to month. I clearly told them at the signing and also stated in the lease.
It renewed on 4/1/16 for another year. I get a call today and he said he is losing his job and cannot afford the place and wants out.
How would you handle this situation? I have last month rent and security. Last month rent is for the 11th month of the lease expiration and clearly stated in the lease.
I looked up the PA laws to see if you have a duty to mitigate damages, and in PA you do not.
So, you don't have any duty to try to re-rent the unit and can hold the tenant liable for the entire lease.
I'd let them break the lease - but - I'd use the leverage that I didn't have to, to get them to move out without a fuss and leave the place clean and undamaged.
It doesn't sound like you have any proof he's losing his job, and it sounds like he hasn't lost his job yet. Which sounds a bit fishy to me, honestly. How many people know they are going to lose their job before they get notice they are losing their jobs? And how many employers nowadays tell you you're going to lose your job, yet keep letting you work? Nowadays, you might get some severance money, but they usually take your badge and keys and walk you out the door, even if you were a great employee.
But, I know that when a tenant really wants to break a lease, you should just let them. Otherwise, they'll start complaining about any of the things that can legally allow them to break a lease, and it will be a headache for you, sending out pest control people to see the ghost cockroaches, or test for mold, etc.
So, if it was me, and since renting in the summer probably isn't a problem in PA, I'd probably tell him the law - that I don't have to let him out of the lease. But, then tell him he has to pay rent until he moves, and on move-out day, if the place is left empty and immaculate, then I'll hand over his security deposit when he gives me the keys. Basically, a compromise.
Here's the article I found on PA law on tenants breaking leases:
Let them out, but have them sign an agreement that you will put the place up for rent and try to rent it, that the security deposit and last months rent will be held until the place is rented, if you can not find a tenant in the term of the original lease that they will be responsible for paying till the remainder of their original renewed contract. but make an effort to advertise it and show that you are advertising the place.
What do I call this a lease addendum or a lease termination agreement? thanks
Laurel, MD · Member since 2016 · 50 posts · 19 votes
10y
Air on the side of human kindness and let them out. I know it business, but we prosper by offering services above the norm.
You should use a lease termination. Be sure to indicate that it's a mutual decision requested by the tenant. Also get their request in writing, letter or email.
Air on the side of human kindness and let them out. I know it business, but we prosper by offering services above the norm.
You should use a lease termination. Be sure to indicate that it's a mutual decision requested by the tenant. Also get their request in writing, letter or email.
should they still be responsible for utilities and cutting the grass if we terminate the lease or just the time the unit sits empty?
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
Lease termination as @Ryan Van Fleet mentioned. I would just hold them responsible for the electric and such for the time that they were in there, you shouldn't be using much electric if no one is there. cutting the lawn once they leave would be your responsibility. i would just charge for the time it's empty if you can't rent it, that should cover your expenses any way.
Laurel, MD · Member since 2016 · 50 posts · 19 votes
10y
@Jimmy S. You are in the power seat letting them out of the contract. So you could request what you think is fair.
Personally I'd set the termination date to the end of the month and hold them responsible for the utility and lawn care up till then. If they are moving out before the end of the month and moving far away, take enough out of their security deposit to cover that month's lawn care. In Maryland you have 40 days before the SD is required to be returned.
Whatever you decide on be sure it is stated in the lease termination so expectations are clear.