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Updated over 3 years ago on . Most recent reply

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PK Adi
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Early termination of lease by Tenant

PK Adi
Posted

My tenant got a new job in Austin and he wants to terminate the lease early. He leased the condo just 3 months ago. Even my previous tenant terminated the lease early due to his personal reasons with his girl friend.

But as a new landlord( less than an year), I am going through the hassle of re-listing the unit, secure a tenant and return the deposit to the tenant.

Is there any clause in California, that can help the landlords like holding part/full of the security deposit for early termination by tenant? Because I remember paying my apartment 1 month rent(in addition to 1 month notice) when I had to terminate my contract but I don't see such clause in the rental agreement.

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Michael K Gallagher
#2 Commercial Real Estate Investing Contributor
  • Real Estate Agent
  • Columbus OH
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Michael K Gallagher
#2 Commercial Real Estate Investing Contributor
  • Real Estate Agent
  • Columbus OH
Replied

I'm not sure what the local laws are there in Cali, but if your lease does not have a lease break clause in it....its something you should consider adding.  And if it does not, most leases are written so that the entirety of the lease is due to you.  Now enforcing that is obviously difficult.  In the very least you should keep the entire security deposit, my lease break clause is as follows.  They must give 60 days notice in writing, of the desire to break the lease, and there is a 2 month "lease break fee".  I offer multi year lease discounts as well so if its a multi year lease, the 2 month fee is assessed at the non-discounted rental rate.  

Don't feel bad requiring something from them, they signed a lease, its a legal document, its completely in your right to charge them a fee for your inconvenience.  

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