First Time Landlord - Tenant Wanting To Terminate Lease

[Dan Gustavson]

Hello to all in the Bigger Pockets world! This will serve as my first post in the forums. I have been a member since 2014 but have only been active as of the last couple of years as I obtained my first rental property in 2017. My first tenants are about to end their second lease, it terminates the last day of March. However, she text me yesterday saying they found a house and will not be signing a third year and asked if they could terminate a month early, last day of Feb instead of March. I have read other threads regarding this topic, but found myself in a more unique situation compared to the ones I found as it's only one month vs several. They have been good tenants so I want to keep the peace and work with them. According to the lease signed, it states that the security deposit will be refunded as long as they fulfill all obligations as per the contract, including the full term of the contract had expired. My thinking.. if i say no and that they need to keep to the contract and pay march, they will just bail anyway and i could risk damages. OR.. i was thinking of saying they will lose the deposit and I would terminate the lease the last day of Feb. I would also state that if they kept the place immaculate so we could show it, no damage during final inspection, and if i got it rented before March.. I would possibly consider refunding a portion of the deposit (kind of like an incentive). 

Sorry for the long explanation.. this is all new to me and I want to be fair and not stir up bad feelings as they were good tenants. I appreciate any and all feedback! And I plan on posting on here more often. Thanks everyone!

[Joe Splitrock]

@Dan Gustavson I would let them know they are responsible for March unless you are able to find another tenant and get them into the property. Tell them if they keep the property clean and cooperate on showings, it will make it easier to get it rented. If you can have someone in March 1, then they are not responsible for any of March. If March 1st passes, then they need to pay March rent and then if you can get someone in on March 15th, they will get pro-rated rent returned. I have done this with many tenants. Sometimes they get money back, other times they don't. I have had someone get mad. They signed a contract.  

If they are the type of people that will get mad and trash your property, then just take them to court if it happens. Obviously since they purchased a home, they must have some level of responsibility. I doubt they want to end up in court over a few bucks.