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Updated over 4 years ago,

User Stats

568
Posts
331
Votes
Michinori Kaneko
  • Rental Property Investor
  • New York
331
Votes |
568
Posts

ending lease term to put another tenant that pays more

Michinori Kaneko
  • Rental Property Investor
  • New York
Posted

Hi,

i have tenants in a 3br apartment (three guys that shares). their lease doesn't end until 12/31, but one of them is getting engaged and wants to move out, along with the other two. The lease states if the lease is terminated voluntary early, then they forfeit the deposit (they have 2x month deposit) + 2 months of rent. They don't want to use this early termination clause, but I also have incentive that there is a strong candidate that wants to sign a lease on that apartment for $50 more per month. Is it a dangerous bridge to allow early termination of current tenant with more favorable clause (e.g. only forfeit deposits, they pay all legal fee to prep docs to break lease legally, etc.)? My concern is that if I do this with one tenant, if another tenant wants to leave before lease term end and I don't allow it, will it be deemed as favoritism, or as long as I have a formal documentation of mutual agreement there are no issues? Thank you for your help in advance.

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