Should I let my tenant break the lease?

Question

is it sometimes best to cut loses and let a tenant walk from an annual lease?

I had a nice couple sign a year lease. Subsequently their relationship fell apart and are changing careers. I now have a single mom desperately trying to keep her head above water. She has not yet missed a rent payment (have fingers crossed) and is indcating she needs to find cheaper housing.

Should I let her walk? I'm thinking it may be better to do so now in summer as opposed to waiting for things to fall apart.

Kelly N. · Answer

Hello John,I think it is better to work with them to find a solution that is best for both of you than to wait until they are in trouble and you have to evict. It's better for her- saves her money in the long run and she won't end up with an eviction on her record. It's better for you since you won't have to worry month to month whether she'll be able to make rent and you won't have to go through evicting her. If it were me, I would talk to her about finding a new place and start showing the apartment. You can either just simply let her out of the lease or let her out once you have found a suitable replacement.

Account Closed · Answer

You'd have to get them both to sign an agreement that they both agree to terminate the lease.But, yes, I'd let them end the lease. I only ever used month to month agreements. I could get rid of a tenant, and they could leave if they wanted to. I did my best to find tenants who were more likely to stay at least a year, but I found less drama was involved when a tenant can just give notice if they want to move out. Otherwise, they'll start looking for ways to get out of it, which could involve complaining about pests or code violations, or mold, on and on. Might as well just let people move. It's less drama.

JD Martin · Answer

I have two different break-lease options for people - they can break early with 2 months rent (one month plus the deposit, assuming there's no damage), and I will let them walk unconditionally - I reclaim utilities, yard care, etc. Essentially, that just costs them one month rent out of pocket since they've already paid the deposit. The other option is they can move as soon as possible and I will get on it right away to rent it back out, but they are responsible for everything until it is rented. Every person I've had break a lease has chosen Option #1, and so far I've never gone past the 2nd month of vacancy on a broken lease, even in winter, so I've never lost any money. Your question was should you let her? I would, within those options. If she is current, might as well explore enacting one of those options before she is out of cash.

Lynn McGeein · Answer

If a tenant actually comes to me saying they can no longer afford the rent, it is always in my best interest to work with them to get them out, hope they have somewhere else to go and won't try to stay until the last day they would be allowed through eviction process. However, it may just be a matter of waiting until spousal or child support kicks in, which can go through the courts surprisingly fast in some cases.

Thomas S. · Answer

I would let them out but it must be contingent on finding a replacement tenant and they must be responsible for your costs associated with finding a new tenant- advertising, screening etc.They pay till the unit is rented, hopefully you will find a tenant before they leave.Leases are terminated regularly, a lease will not insure a tenant will stay to the end, which is why I always prefer M2M.

John Vietmeyer · Answer

great advice. I agree open communications and solving the problem sooner rather than later is the best approach. Will let it ride for the weekend but will sit down next week. Appreciate it....

Stan Sugarman · Answer

I would allow a tenant to move with notice. If the wife cannot afford the place and husband is missing you are allowing a bad situation to fester. Right now is a good time to find tenants so why not improve your situation.

Corby Goade · Answer

I'd sit down with both of them and discuss all of the options above that interest you. I've been in the situation many times. If you have a good relationship and they've been good tenants otherwise, you'll be able to come to an agreement. You can be friendly but firm, after all, you hold all of the cards in this situation, but that doesn't mean you have to be unreasonable. If you can agree to a solution that doesn't cost you money or much time, why not?

Michele Fischer · Answer

We try to strike a balance of firmness and compassion.You could offer to let her move out early, but decide on a date, get a firm commitment to work with you to show the unit before move out, and/or have her pay until it is re-rented. I assume there is not a clause about breaking the lease in the agreement. If you can let her out without it financially impacting you very much, it is a win-win. Agree that the sooner the better for summer tenant turnover, so the conversation may be how soon she can move out.You may also want to talk to her about getting a roommate. Explain to her how it would work on your end, give her some resources to find a roommate. But, honestly, roommates often bring along their own increased drama.The husband should be turned into collections if they end up owing you money, but I wouldn't expect much help in keeping her in place.

Nancy Curran · Answer

Why isn't the husband part of the scenario? If he signed the lease, why isn't he paying? My position is I just can't get involved in my tenants dramas. They signed a lease. There are a lot of options that don't include me getting involved. They can borrow money from family, friends. She can get a roommate. She can sublet the place. I'm not unsympathetic but I have my own financial commitments to worry about that don't subside because someone else's marriage broke up.