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Updated over 3 years ago on . Most recent reply

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195
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52
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Lois S.
  • Investor
  • Brentwood, CA
52
Votes |
195
Posts

Tenant left 2 months into year lease. Do I owe PM new lease fee?

Lois S.
  • Investor
  • Brentwood, CA
Posted

MF property out of town, managed by PM.   Tenants, after signing a 1 yr lease, stay 2 months & move out without notice.

- PM says Tenants will be liable for 30 days rent. I know CA law says tenant is liable for rent until a new tenant is found.

-I would expect tenants also to be liable for any make-ready expense.  Correct?

- Should PM expect me to pay another lease-signing fee?

PS: As background, I researched the prospective tenants' social media online & would have been reluctant to rent to them.

Most Popular Reply

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2,119
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4,975
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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
4,975
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2,119
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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
Replied

Tenants are responsible for lost rent until re-rented, lost percentage of cost for "make-ready expense" and lost percentage of cost for PM lease fee.

Assume that you re-rent with one lost month. The tenant is responsible for that lost month. They are also responsible for 9 months worth the cost of the "make-ready expense" and the PM fee. Since you paid 100% of those costs and they should have covered 12 months, but you only received rent for 3 months and are now incurring an additional cost, you are entitled to recoup the 9 months portion of money lost due to the early breaking of the lease. 

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