Breaking the lease, could we deduct for a new tenant placement?

[Jane A.]

Could we deduct 50% of the security deposit as a new tenant placement expense when the previous tenant breaks the lease?  or only cleaning and damage expenses?  Thx

[Lynn McGeein]

Be careful even if you have a clause in the lease regarding forfeiting a deposit as many states don't honor that clause, and some allow the tenant to sue for x times the amount contested (in MD, for instance, it's 3x the disputed amount).   In most states where I've done business, if there is no early termination clause, usually you can charge for the costs to advertise and the time it is vacant including utilities if tenant was responsible for them up until lease end, itemized with the rest of the damage above normal wear and tear.  You can't just pick an arbitrary number and keep it.  I have a break-lease fee equal to 2 months' rent in the ones I self-manage, which actually deterred at least one tenant from leaving months early, but I will also work with them if they have been great tenants and allow me to advertise and find qualified replacements to take over when they leave.