Tenants want out of Lease

[Faraz Rashid]

Hey BP,

I have a tenant who wants to break a Texas lease. They signed in June 2020 and they want out by February 2021. They want to forfeit the security deposit for the February rent and leave the property not having to pay for the remainder of the months. I have read other posts on a lease buy out or taking legal action. I do have an Early termination section in the lease and it clearly states that they must find a new tenant and if they do it must meet landlords qualifying approval. If they do not find other qualifying tenants, is it possible for them to stop paying and abandon the property? They have vacated and cleaned the property and moved to their new location but have been coming back and forth to maintain the property until new tenants are found. Are there alternative solutions to this situation?

Thank you,

Faraz Rashid

[Greg Weik]

I think you need a better lease or a property manager.

You should never put the onus on tenants breaking their lease to market for new tenants. 

Just add an ITF (Improper Termination Fee), usually the amount of the security deposit plus the amount of one month's rent.  Check TX state law to see if there's a cap on what the ITF can be.  Most states will deem clauses such as "rent must be paid through the end of the lease term" to be unenforceable because they create an incentive for landlords to not attempt to find new tenants.  

As to your tenants breaking their lease, once they vacate, make the security deposit claim and threaten to send them to collections for any balance owed (if you so choose, depends on the condition and how quickly you can get it re-rented.)

In our world, landlords normally end up in a better financial situation when tenants break their lease, due to our lease ITF and quick turnaround.  Time is money, don't spend more than you have to on situations like this.