Landlord Question and Answer Forum
We had a renter move out early. What is allowable by law for a early termination fee ? And can that be taken out of the security deposit? This is in Brazos County Texas.
Also what is reasonable for a light bulb replacement fee?
Mike and Judy G, TX on Friday, November 27, 2015
RE: Early termination of lease
Read over your lease, if it allows the tenant to terminate early. If it does you can only charge what is actually needed to rent out to new tenants. If your lease does not allow early termination, than you can charge until your lease ends or you get a new tenant, which ever happens first. I usually make an attempt to re-rent. Once I do, I tally up all the missed rent, damages, and any other expenses, deduct from the security deposit, send a settlement statement. If there is a refund, that is sent, if not, a bill for amount owing is sent. If no response, I take it to small claims court for amount owing. Make sure you document everything as well! I hope this helps! Good luck
Posted by
Bill F, MS
on
Monday, November 30, 2015
RE: Early termination of lease
Light bulb replacement fee? Really? I doubt any judge would allow you to charge to replace a light bulb unless it's a very SPECIAL and expensive light. It's just normal wear and tear so I wouldn't bother.
As far as the early move out. Even in states like PA, which do not state any requirements that a landlord must take to re-rent, if you go in front of any judge they will EXPECT you to mitigage the damages charged to your ex-tenant. Therefore, you need to start the procedure you normally use to get a new tenant. AND keep extra records because if you end up in court, you need to show that you did everything you normally would do to obtain a new tenant. In other words, you cannot just sit back and WAIT and assume you can charge it to the ex-tenant. IF you can prove that you started marketing right away and show a list of prospective tenants who saw the property (I always have a sign in sheet that they fill out with name/phone number etc in case a judge would want to see/call)?. You need a record book showing who saw it and why they DID NOT take the place. (again a judge COULD call to find out if you are being honest). IF indeed it takes 60 or 90 days to re-rent and you have evidence to this, you absolutely can small claims court your ex-tenants for any difference after keeping the security deposit. (assuming of course you can find them lol).
ALSO - make certain that you email your tenant a letter explaing why they are not getting their security deposit refunded and a list of all damages (including rental arrears) within your state specific time line (30 days here in PA). If you fail to send this letter to your ex-tenant you may be liable for the security deposit refund and fines. (Again, here in PA it's twice the security deposit). Google your state landlord/tenant act and read it.
I never offer a lease that allows early termination...not sure what advantage it offers to a landlord???? And if early termination is allowed it would (should) be stated CLEARLY in the lease. If you do not have an early termination fee stated in the lease I doubt you can charge anything. (You can't just make up a FEE amount after the fact). As I write all the time - find a R.E. Attorney. Most allow a 30-60 minute free consultation. Tell them you want to establish a relationship with them for questions and concerns from time to time. It's well worth spending $75 for a 15 minute phone call on occassion.
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