Early Termination of Lease Clause

[Josh Young]

I have a clause that I write into my 12-month leases that says: "The Tenant(s) may terminate this lease’s length by delivering to the Landlord a written sixty (60) day Notice To Vacate and an early termination fee of one (1) month’s rent. This notice and fee must be received by the Landlord at least sixty (60) days before Tenant(s) vacate and stop paying rent. Additionally, to initiate an Early Termination Of Lease all rents owed to the
Landlord by the Tenant(s) must be paid in full and current."

I had two different Tenants use this clause this year and it really turned out to be a win-win, the Tenants were able to get out of the Lease which saved them money because one bought a home and another moved in with their new fiance, and I was able to collect the extra fee and the 60 day notice gave me time to find a new Tenant at a higher rate and have zero days of vacancy. 

I have seen some posts of people asking about letting Tenants out of a lease and different discussions on this topic, but I believe this is a win-win that can help everyone and it's spelled out in the Lease, so there are no questions as to what happens if the Tenants want out early.

Does anyone else use a similar clause and/or have a similar experience? Or different?

[Nathan Gesner]

Quote from @Josh Young:

I require three things:

1. Give 30 days notice

2. Pay a termination fee equal to 1.5x the monthly rent

3. Allow us to market and show the property during their final 30 days of occupancy

I have dozens of early terminations every year. About 80% of them willingly accept my requirements. The other 20% of tenants are held responsible for all costs until a new tenant is placed, typically within less than 30 days of the original tenant's departure.

It's essential to develop a process in advance. Too many landlords wait until the tenant breaks the lease, and then they try to figure out how to handle it. Doing it correctly is easier on all parties and puts more money in the landlord's pocket.