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Reasons You Might Want to Allow a Tenant to Break Their Lease

By
Real Estate Agent with Keller Williams Realty Beverly Hills

Sometimes unforeseen changes occur in peoples' lives that necessitate a sudden and even unwanted move.  Job change or loss, family circumstances, and a bevy of other situations may mean a sudden move for one of your tenants.  As a landlord, there may be several reasons to allow your tenant to break their lease:

  • The unit has been rented for less than market value, and you could rent it for more than it's current rate
  • You would like to do upgrades, work or repairs to the unit
  • The tenant offers or agrees to pay an early termination fee
  • You would rather avoid a dispute with your tenant
  • You want to avoid the hassle and court costs involved with an eviction or collection proceeding

Successful landlords know it is often best to work with a tenant that wishes to terminate a lease agreement early.  Once a tenant has decided to move out, your main goal is twofold; to make sure the renter moves out without damaging the unit and properly terminates the rental agreement so you can turn the unit around and rent it again.  An agreement for early termination is usually in everyone's best interest.

A professional property management company, such as Golden Estate Management, can handle these and all rental issues for you.  For a full description of our services, please visit www.GoldenEstateMangement.com.  We serve the greater Los Angeles, Fort Worth, and Oklahoma City areas.

 

 

Ryan Shaughnessy
PREA Signature Realty - www.preasignaturerealty.com - Saint Louis, MO
Broker/Attorney - Your Lafayette Square Real Estate Partner

Pretty good advice in my book ... property damage is a bigger concern than a couple of months rent...

May 10, 2009 06:32 PM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Nice post! Best to let everyone terminate happy. Otherwise can cause huge problems for the landlord.

May 10, 2009 06:42 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

When there is little to no financial harm to the owner, of course a lease should be terminated.  Otherwise, it evidences a "warden" or "sheriff" complex on the part of the owner. 

To they want tenants?  Or, do they want prisoners??

 

May 10, 2009 09:51 PM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop
  • You could add: you have a list of people waiting for the unit that will be reliable.
May 10, 2009 10:25 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

James, a good post and a reminder to all landlords.  Be flexible and reap the rewards.

May 10, 2009 11:13 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Great advice, If you enter in a battle with a tenant. .the landlord is always at a disadvantage

May 10, 2009 11:33 PM
Tim Bradley
Contour Investment Properties - Jackson Hole, WY
Commercial Real Estate Expert in Jackson Hole, WY

On the other hand, if you do not have a replacement tenant, it's smart management to hold the existing tenant as close as you can to the terms of the lease. Otherwise, it's lost income. Negotiating an exit payment is the best hope then.

May 11, 2009 02:12 AM