Breaking Lease Options

[Jason Stephens]

Hey all, I currently live in an apartment. My lease is up on 15 August, and I just made an offer (17 April) on a house in my area. Assuming the offer is accepted, we are planning on closing sometime between 1 June and 15 June. This house is for me to live in, though it will end up as a rental in a few years. 

The lease for my apartment clearly states that they want a 60 day notice that I'm leaving and the early termination fee is 2 months rent. If my offer on the house is accepted and I give the apartment manager my notice today, I will have to be out of the apartment around 17 June and pay 2 months rent as an early termination fee. I'm at the point where, by the letter of the contract, I'm going to be paying 2 months of rent no matter what I do. This was budgeted into my plan, but obviously I'd prefer not spending an extra $2k if I don't have to. 

I'm looking for suggestions on how to spin this for the apartment manager's so that I don't have to pay the full early termination fee. 

Thanks,
Jason

[Nathan Gesner]

Communicate and negotiate.

In most states, the Landlord has a duty to find a new renter. They can only hold you liable for rent up until the new tenant moves in. Some suggestions:

1. As if they'll reduce the termination fee to one month since you are giving them 60 days notice to prepare.

2. Offer to keep the rental show-ready so it's easy for them to market and find a replacement tenant. If you help them reduce losses, it's easier to let you go.

3. Walk away. They can apply your deposit to the unpaid rent and will likely find a new tenant to move in shortly after you vacate.

[Theresa Harris]

Nothing to add-what Nathan said is great advice.

[Steve Vaughan]

I may ask hypothetically for a friend and see what they say. Actually have a friend ask. Communicate and negotiate- I like that.

If this is a large complex with an on-site PM, I might try to place my own sub-tenant I trust for a couple months as a last resort.  If you don't completely trust they will leave the unit in perfect condition and on time, don't do it.  Shady advice, but an option if the 2 month fee is too much for you. On principle I would certainly have a hard time with it. 

[Account Closed]

Perhaps you could delay the closing. Two months over-lap is excessive, but one month is really nice if you can afford it.

[Jason Stephens]

Unfortunately, I can't delay the closing. The seller is very motivated, they have had 2 offers fall through due to people loosing their jobs from Corona related layoffs. They want to get this done before I loose mine, I guess. 

I talked (emailed really) to the apartment manager. According to them, they are unable to modify the early termination fee because it's an agreed to term in my lease and it would be violating NM fair housing laws... 

Either way, terminating the lease or letting it run out, I have to pay 2 months rent. I'm just going to let it go until it's original termination date, this way I can spread those 2 lease payments out over the 2 months instead of paying it all up front. 

Fortunately, my first mortgage payment isn't due until 1 August, so there won't be a lot of overlap. And this gives me time to do some painting and minor repairs before I move in. 

Thanks for the help.