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Updated over 8 years ago on . Most recent reply

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204
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Josh Dillingham
  • Rental Property Investor
  • Brattleboro, VT
174
Votes |
204
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6 month lease broken after 8 days.

Josh Dillingham
  • Rental Property Investor
  • Brattleboro, VT
Posted

I just had a tenant move in 8 days ago who signed a six month lease.  He texted me yesterday saying he wanted to break the lease because the apartment is too loud at night. (this is an owner occupied 3 unit, I leave right next door...it isn't loud.) My thought is that I'll allow him to break the lease as long as I find a suitable tenant to replace him with and there is no loss of income. apparently he has someone who might be interested in taking over the lease.  I told him I wouldn't meet with anyone until he gives me a firm move out date so I can market the apartment and choose from a pool of qualified tenants.

a couple questions:

1.) is it unreasonable for me to market the place just the same as I always would when renting it instead of first showing it to the person he knows that might want to take over the lease? (I would be willing to rent it to his person if they qualify and are the best candidate but I want to know everyone who is out there that might be qualified to rent it.)

2.) Would you keep any of his security deposit for the trouble of breaking the lease and placing a new tenant even if you had no loss of income?  could there be legal issues with this in your state?

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Account Closed
  • San Jose, CA
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Account Closed
  • San Jose, CA
Replied
Originally posted by @Josh Dillingham:

I just had a tenant move in 8 days ago who signed a six month lease.  He texted me yesterday saying he wanted to break the lease because the apartment is too loud at night. (this is an owner occupied 3 unit, I leave right next door...it isn't loud.) My thought is that I'll allow him to break the lease as long as I find a suitable tenant to replace him with and there is no loss of income. apparently he has someone who might be interested in taking over the lease.  I told him I wouldn't meet with anyone until he gives me a firm move out date so I can market the apartment and choose from a pool of qualified tenants.

a couple questions:

1.) is it unreasonable for me to market the place just the same as I always would when renting it instead of first showing it to the person he knows that might want to take over the lease? (I would be willing to rent it to his person if they qualify and are the best candidate but I want to know everyone who is out there that might be qualified to rent it.)

2.) Would you keep any of his security deposit for the trouble of breaking the lease and placing a new tenant even if you had no loss of income?  could there be legal issues with this in your state?

 Hi Josh, I'm assuming the property is in Vermont?  If so, you're in a good position to negotiate.  In VT, landlords do not have a duty to mitigate damages.  This means, you can hold him accountable for the rent for the full 6 months if you want to - even if he moves out.  

From this page:  http://www.nolo.com/legal-encyclopedia/tenants-rig...

Landlord’s Duty to Find a New Tenant in Vermont

"Landlords in most states (for example, Arizona) must make a reasonable effort to re-rent their units when a tenant breaks a lease, rather than charge the tenant for the total remaining rent due under the lease. Unfortunately, landlords in Vermont (9 Vt. Stat. Ann. § 4462) do not have the same responsibility to “mitigate damages” by trying to rent their property reasonably quickly and keeping their losses to a minimum if you move before a lease ends. If you break your lease and move out without a legal justification (described above), try to work something out with your landlord. Don’t just move out and hope your landlord gets a new tenant quickly and doesn’t charge you for the remaining time on your lease. Provide your landlord as much notice as possible and write a sincere letter explaining why you need to leave early. Ideally, you can offer your landlord a qualified replacement tenant with good credit and references, to sign a new lease.

But keep in mind, that if the landlord doesn’t agree to let you off the hook, you will be liable for paying rent for the remainder of your lease. This could be a substantial amount of money if you leave several months before your lease ends. Your landlord will probably first use your security deposit to cover the amount you owe. But if your deposit is not sufficient, your landlord may sue you, probably in small claims court where the limit is $5,000 in Vermont."

----------------------------

So, what I'd do in your shoes, is show this to the tenant.  Then, tell him you'll only keep his security deposit, if he wants to move now.  And, as you said, tell him you need a firm move-out date, and that he must pay rent until he moves.  Put that in writing, and mail it to him with delivery confirmation, and you could always email it, too.  I just used the USPS priority mail, because the mailman just scans it when he delivers it - they can't avoid signing for something or picking up a certified letter.  And you have instant proof it was delivered online.  Emails are legal written documents in most states now, too.

Anyway, just negotiate something that will work for both of you.  You're in the driver's seat on that.  But, I'd let him move.

OHHH - and I would NOT take any referrals from this guy.  Why would I want one of his flaky friends?  Especially one that knew they could break a lease with you?  You're under no obligation at all, to take anyone you don't want to take.  And a friend of his?  Heck no.  Plus, he'd be around all the time, probably, maybe even staying there.  Yikes.

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