Early Lease Termination - Free Replacement Tenants?

[Caleb Liu]

Hi BP Landlords,

My tenants just notified me they will be closing escrow on their new home at the end of this month.  They intend to break their lease just 4 months into a year-long term.

They've coordinated with the agents they're using on the purchase to offer to relist my property for rent at no cost.  They will handle all of the potential applicants along with the showing of the house.

Have any of you gone through a similar situation?

I've used my own trusted agent for over 10 years.  I'm a bit cautious about relying on agents I'm not paying, and thus aren't incentivized to perform.  They don't answer to me.

The property is in California and the relevant clause in the lease agreement states: "in the event of termination by Tenant prior to completion of the original term of the Agreement, Tenant shall also be responsible for lost Rent, rental commissions, advertising expenses and painting costs necessary to ready Premises for re-rental. Landlord may withhold any such amounts from Tenant's security deposit."

Thanks in advance.

[Gail K.]

I've had tenants break their lease for a variety of reasons, including purchasing their own homes.  They can use the lease breaking clause in the lease or they can work at getting replacement tenants themselves.

Doing the latter does NOT mean they get to choose any yahoo that walks off the street and wants to rent the place.   Applicants still need to go through my screening process and still meet the criteria I have set for everyone.

Your tenants can handle showing the house to as many "potential" applicants as they wish.  It's still up to you (or your agent if you rely on them to make the final decision) to choose a replacement tenant.  Until YOU (or your agent) agree to this applicant your current tenants continue to owe rent on your unit.  Purchasing a home is NOT a legal justification for breaking a lease.

Gail