Landlord Question and Answer Forum

My tenants just signed a year to year renewal agreement this past May~they now want to break the lease so they can live nearer to other family members. They have asked me,if so long as they give me 30 days notice and help me in locating a new tenant if there will be any penalties? From what I've been reading,it looks like I can withhold their security deposit (considering the security deposit as an extra months rent so that I can locate a new tenant and clean the place up) OR I can give them their security deposit back minus any damages AND also charge them with either how many months to take to find another tenant OR charge them for all the months that are remaining on their lease. So long as they give me at least 28 days notice. Needless to say~I'm finding this a bit confusing and the fact that I have a good relationship with my tenants. What would be YOUR advice as to how I (as the Landlord) should handle this? Thank you for any/all advice you can give me! : )

If they move out before the lease term and before any new tenant signs a lease, your tenant will be in default for the balance of the rent to term minus any new tenant's rent. They'll owe you at least a month's rent when they move out, because you'll need the month to clean and find a new tenant, so use their security deposit as rent they would owe you. Their offers to help you find a new tenant are very iffy at best. Let's say they find you several prospects they think are suitable, but you don't. They then can claim that you're deliberately keeping the apartment off the market in order to get the entire balance of the lease term from them. I know I sound very cynical, however, they signed a legal, binding contract with you, and they should have thought about living closer to relatives before they signed the lease. Stick to your guns and inform them you'll find your own tenant, thank you, and they'll owe you until you find a new tenant. It's business, not tea and symphony!

Posted by Steve F, NY on Tuesday, August 24, 2010

Thank you Steve! : ) What you suggested is exactly the way I was thinking of going about this. I'm new to this Landlord business~so wasn't quite sure how to deal with this. These tenants are my VERY 1st Tenants~so I am still learning the ropes. I didn't like the idea of having to get them to pay for the remaining months that is left on their lease,cuz I didn't like the thought of taking them to court,cuz I'm sure that's where that situation would lead to. Situations change in peoples lives and I understand that,but I believe that there has to be SOME penalty in breaking the lease. Thank you again~for your advice/thought/suggestion~it has helped me greatly!

Posted by Patricia P, WI on Tuesday, August 24, 2010