Premature lease termination: What are reasonable charges

[Satya Patil]

Hi All,

I have a question about my SFH rental property in California. Its new such situation for me so let me know what you think.

Tenant moved out in 8 months due to a new job. They agreed to pay 2 months rent for allowing the early termination. But on the move out day backtracked and said they will only pay until the new tenant moves-in. And if this doesn't happen in two months then they are not responsible for rest of the term.

The lease has language around penalty for early lease termination, payment for rest of the term becoming due, all the costs for re-renting the place, etc. I was happy for the possibility of getting to keep at least a portion of the two month rent and worried about house becoming vacant at non-peak time.

Now my questions are following-

1. What should I charge them as the final bill. Shall I charge them like a property manager for re-renting the place? Or shall I bill them for the rest of the 4 months? I still have their security deposit (1 month rent) with me.

2. And if I was to charge them like a property manager how should I bill them for house showings, lease preparation and signing, inspection, etc? When I had a property manager he used to charge for all the above plus  $400 from first month's rent.

Thanks in Advance.

Satya

[Jim Shepard]

Satya Patil As others have said check your state's landlord / tenant laws. I would vote to charge them $400 for a break the lease fee (I charge $500). For me this is to pay for my time. I now have to patch the walls, clean the unit, show prospective tenants the house, etc. I would tell them in writing that they are responsible for paying the rent until you re-rent the unit or the end of the lease, which ever occurs first. Once again if your state's laws allow.
You need to take charge of the situation and not let you tenant tell you what they are going to do. Remember THEY are the ones wanting to break the lease and not you.