California Early Lease Termination

[Christine Smith]

Hey BP Peeps,

I'm looking for feedback on what you would do in this situation. 

We have a tenant who gave us 60-days notice they are not planning to renew their lease (expires Jan. 31; 60 days notice required in lease).  They're buying a house. There is an early termination fee, but I'm realizing it's a bit poorly worded: it says the tenant can either pay the balance on the lease, or pay a termination fee of $X-amount (about 2 months rent).

Tenant is asking to be let out of the lease at the end of next month, and to not be charged for January rent. 

What would you do?

[Nathan Gesner]

They gave you 60 days notice that they will vacate a month early? I would not charge a termination fee for that. I would let them know they are responsible for rent until the end of their lease or until a new renter takes over. Ask if they are willing to let you market / show the home with 24 hours notice. If they are, you can probably have a new renter lined up right after the current ones vacate. Charge the departing tenant up until the new renter moves in. This ensures no vacancy on your part and it reduces the financial impact on the departing tenant. Win-win.