What we have put in-place for ourselves would likely not be appropriate in you situation.In Canada I was going to start investing as sole proprietorship so i could get the lower tax rate ( the need for liability protection via corporate structure is lower in Canada).When you are first starting out there can be benefits to holding {residential rental} property in your own name - especially if you are expecting to produce negative cash-flow in the first year or two as you can use the loss against your earned income from other sources.

Aside from the sad loss to the patriots by 1point, there are a ton of opportunities on the Westside, just looked at 4 today....Great cap rates 20%+

What are the vacancy and default/loss rates?

To have 6 clear titles you have done something right in the past cut your losses and do it again.

At least now you have a stable situation although cash flow negative which sounds better than selling the house for a big loss.

However, tenant agrees landlord is not responsible for tenant's financial or physical loss of food, meals, preparation or cleaning time, and landlord is not liable to replace any food or other product lost by tenant due to spoilage, lack of heating or cooling or any other reason or circumstance.

Run don't walk away from this deal.It has taking a loss written all over it.

We bought our first property in Aug and rented it for Sept 1 and were able to count that as a year when getting a new loan because it was on our tax returns - so essentially we were landlords for 1 year and 4 months but they were fine with it.Note that if you take a loss on your tax return that money is taken out of your regular income and will hurt you when applying for a new loan

So, within 90 days they are attempting to hedge against perceived losses under tactics employed in the past by others in the RE market.

I see two options.Charge two month penalty like I stated in the current lease, refund the rest.OrCharge whatever loss I incur from her early termination.