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Updated almost 5 years ago on . Most recent reply

User Stats

26
Posts
10
Votes
Ragnar Lothbrok
  • Utica, MI
10
Votes |
26
Posts

Breaking Lease during COVID-19

Ragnar Lothbrok
  • Utica, MI
Posted

Hello BP,

I am looking for your thoughts on a bit of an issue I am dealing with right now.

A tenant who we've signed 4 months ago is break her fixed-term lease with a 30-day notice, with 13 months remaining. There is nothing in our lease that lists any fines for doing so, nor is there anything allowing permission to freely break their obligation. Email communications have shown that the tenant believes she can simply leave without any consequence. She would also like to pro-rate her rent for the last month, leaving on the 7th, and a full refund of her security deposit.

We intend to hold her fully accountable regarding damages, utilities, and lost rent-up until the the end of the contract, if necessary. However, my wife and I have already been putting several hours of work into finding a new, actually decent, tenant. In Michigan, I believe we cannot take advertising/screening costs out of the security deposit, but boy we'd love to..

Is there anything you would recommend we do, to be compensated for this? If we have a property manager find a tenant, costing the first month's rent, could we sue/deduct from the security deposit for that expense?

I suppose I'd just like to leave it open for anything else you'd like to add?

Most Popular Reply

User Stats

464
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563
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Ujwal Velagapudi
  • Investor/Agent/Entrepreneur
  • Dallas, TX
563
Votes |
464
Posts
Ujwal Velagapudi
  • Investor/Agent/Entrepreneur
  • Dallas, TX
Replied

Did the tenant provide any reasoning for wanting to break the lease early, particularly any job loss/financial hardship due to covid lockdowns? The fine for breaking the lease is simply paying the remainder of the lease, that in itself is a breach of contract. If you do find a tenant, you can sue for the potential decrease in rent you're taking with the new tenant, weeks/months of no rent, etc. 

Lol at her request of wanting to prorate last month and get her SD back...

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