Upgrading my Lease

[Cassidy Burns]

Hi BP,

I have run into an issue and need some advice.  

My current tenants are breaking their lease and leaving early, December 18th, horrible time to try to rent condo out even in Washington DC.  I told them that they since they broke the lease they would be responsible for the whole month of December and I would be keeping their security deposit.  They responded 3 weeks later stating that my lease never stated they would be responsible for the security if lease is broken, I checked and unfortunately it doesn't.   They have offered to pay the prorated payment for staying through December  18th and forfeiting the security deposit.  

IS this a fair deal or should I respond and try to retrieve the full months rent for December?

ALSO, I now know that I need to upgrade my lease.  How do I go about developing a more detailed lease?  Should I have a different lease for my future units?

Thanks for any help.

[Shawn Davis]

Hi Cassidy - 

This is not legal advice, you would have to talk to your attorney for that but this is my advice as an experienced landlord:

If your tenants had a term lease that they are breaking early, basic contract law supports the notion that they are on the hook for the full terms of the lease but you must do your best to mitigate your damages by getting a qualified renter into the unit as soon as possible.  Some local rules will cap your damages at 1.5 months rent or some other formula so it is important to know what the laws are in the area that governs your rental.  When is their lease supposed to terminate?  Did you use a form lease?  Very often, even in bad form leases, there is an early termination provision that spells out the rights and duties of tenants breaking a lease early.  Also, your local rules regarding security deposits and leases governs your lease even if you didn't specifically spell it out.  You need to see what the rules say about early termination and which items you are allowed to keep deposits for.   In Washington D.C., though not ideal to be looking for renters in December, there are still opportunities to get qualified renters in there relatively quickly.  Post your ad and get going in finding new renters. Let your current tenants know that it is in their best interest to cooperate with you by keeping the place clean and available for showings because the sooner you get renters in there, the sooner they will be off the hook for rent going forward.

You cant just keep a security deposit without tying the amount you kept to some actual damage you suffered.  You should make it a point to know the security deposit rules in and out because this is the greatest area of disagreement between landlords and tenants and many rules allow for treble damages (meaning three times the amount of the security deposit) AGAINST THE LANDLORD if the deposit is not handled correctly and timely.  If your rules state that a security deposit must be returned or an acounting provided within 30 days of vacancy, and you dont do it or you do it on the 31st day, in many areas this is a per se violation and could easily get you a bill for 3 times the deposit.

I always encourage landlords to connect with their local rental owners association.  These associations are a wealth of knowledge and they often have locally approved form leases and other tenant documents that you can purchase at a reasonable price.