My Tenant is terminating lease early - what are my options?

[Roderick McCleary]

Hi All - newer Landlord here. This is the first time I've come across this situation and was looking for any guidance/advice. 

My tenant (we have a great relationship, really enjoy them) informed me he bought a house and closes April 1. His lease ends Aug 1. I have his security deposit of $1,600 and in our signed lease it is stated "If the Tenant moves out prior to the natural expiration of this Lease, a re-rent levy of $1,800 will be charged to the Tenant"

What are my options here with this Tenant? Anyone dealt with this scenario in the past and what's my best path?

Thanks!

-Rod

[Jeff Willis]

I deal with this all the time.

The re-rent clause is most likely illegal in most sates.  Technically the tenant is liable for the rent from the time they leave until the house is rented again or until the lease expired, whichever is shorter. You have a duty to mitigate your damages, which means you MUST make all reasonable efforts to re-rent the house as soon as possible.

I usually don't worry about the early termination and just try to re-rent. My logic is simple, I will have to re-rent it when the lease expires or re-rent it now and it will usually take the same effort to do it either way.

To recover losses for the early termination will usual require a lawsuit (maybe small claims depending on the amount) and it is not worth the time and effort. Even if you get a judgement, you still have to collect.