Tenant wants to get out of lease early

Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes

Happy Halloween! My tentant called today asking if they can end their lease early. They've always paid on time or early. Their lease isn't over until May 2018.

How do you all handle this situation? I self-manage and really don't want to mess with a vacant property right around the holidays.

My lease doesn't otherwise specify so I was thinking of offering to let them out of the lease for 2 months rent and no refund of their deposit. Does that sound reasonable? Too easy? Too harsh?

Thanks!

-- Jason

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Brie SchmidtBusiness Member

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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

Originally posted by @Jason Krawitz:

Happy Halloween! My tentant called today asking if they can end their lease early. They've always paid on time or early. Their lease isn't over until May 2018.

How do you all handle this situation? I self-manage and really don't want to mess with a vacant property right around the holidays.

My lease doesn't otherwise specify so I was thinking of offering to let them out of the lease for 2 months rent and no refund of their deposit. Does that sound reasonable? Too easy? Too harsh?

Thanks!

-- Jason

Check your local laws. In my area we have to allow for a sublet. So if they can find a qualified applicant to take over the lease, we have to allow it. I usually just sign a new lease with the person to make it easy, but the landlord gets to set the income/credit requirements.

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
9y
Originally posted by @Jason Krawitz:

Happy Halloween! My tentant called today asking if they can end their lease early. They've always paid on time or early. Their lease isn't over until May 2018.
How do you all handle this situation? I self-manage and really don't want to mess with a vacant property right around the holidays.
My lease doesn't otherwise specify so I was thinking of offering to let them out of the lease for 2 months rent and no refund of their deposit. Does that sound reasonable? Too easy? Too harsh?
Thanks!
-- Jason
Check your local laws. In my area we have to allow for a sublet. So if they can find a qualified applicant to take over the lease, we have to allow it. I usually just sign a new lease with the person to make it easy, but the landlord gets to set the income/credit requirements.
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Deanna McCormick
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Download your state landlord tenant laws, you could arrange a mutual lease termination buy out and charge a fee equal to several months rent to let him out, depends on state statues if there is a limitation to what that fee can be.
Happens all the time so that's the nature of the business. The only thing a long term lease protects is geared toward the tenant. Month to month is the only way I rented. Even when you think your going to have a long term tenant things change.
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Paul Steward
Real Estate Broker · Chesterfield, MI · Member since 2016 · 19 posts · 14 votes
9y
For early lease termination, I call it a lease contract buy-out, I need a 30 day notice plus two months rent value and I let them go. You should remember life happens and you wouldn't want to be stuck in a full lease if something major happens that requires you to be elsewhere. I explicitly state my "lease contract buy-out" in all my lease agreements so that they are aware a 30 day notice to vacate is necessary. The 30 day gives you time to market the property with hopes of renting it before your current tenant leaves.
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