Tenant signed lease then backed out 2 weeks before moving in

[Lori J Walsh]

Just 2 weeks before the tenant was supposed to move in as a roommate to another tenant, they advised that they had changed their mind.  I've offered the option of 3 months rent as opposed to the full 12 months as would otherwise be stipulated in the agreement given the following provision: 

EARLY TERMINATION: Should Tenant vacate the premises prior to the expiration of the term of the lease agreement, Tenant shall be required to pay the balance of the lease agreement as an early termination fee.

Finding another tenant as a 'roommate' to the first tenant has not been easy - is small claims court an option in this case?  Or a Court Mediator to settle the matter?

[Bob H.]

Always collect a security deposit when a lease is signed, and make it clear in the lease that the deposit may be applied to unpaid rent. In this case, the unpaid rent would start the day that the tenant was supposed to pay the first month's rent.

Also, your clause "should tenant vacate the premises" doesn't seem to apply to a person who has not moved in. An early termination clause could specify a penalty to be paid by the vacating tenant even if a new tenant is found before the first tenant's deposit runs out. You should be entitled to some compensation for the trouble of finding a replacement tenant.