Tenant is breaking lease early, what are they responsible for?

Question

Hey BP Community,

I own a townhome in Littleton, CO (Jefferson County). My current tenant has bought a home and said she is moving out at the end of this month (September). Her lease is not up until the end of November. Instead of re-renting the property, I’ve decided to sell it. Is the tenant still responsible for the lease until we have closed on the property (or the lease expires, whichever is sooner)? Or is the tenant no longer responsible for the lease upon listing it?

Any guidance here would be greatly appreciated.

Many thanks,

Josh

Theresa Harris · Answer

I'd charge them for the 30 days' notice, but after that, I wouldn't. You are selling it and having it empty will be beneficial.  Get it listed now and hopefully it sells quickly. Let her know that you will have showings and you will do your best to minimize the disruption and in exchange, she will only be responsible for rent for the 30 days' notice, not until the end of the lease.  Selling it now vs Nov or Dec will be easier.

Chris Seveney · Answer

@Joshua Fallin

Tenant is still responsible but if it were me and they were a good tenant not sure I would penalize them because of the benefit of being able to sell a house in September vs holiday season.

Account Closed · Answer

Correct. The tenant is responsible for the lease until the property closes.

Joshua Fallin · Answer

A massive thank you to everyone's response! You all have provided great insights and have allowed me to consider alternative options I hadn't originally considered. I'll be reaching out to the tenant today to discuss options that we both can agree upon and be a win-win for both parties.

Many thanks,

Josh

Joshua Fallin · Answer

Thanks Account Closed! That’s what I thought, but I wasn’t sure if things changed if you sold vs re-renting. Appreciate it!

Michael Haynes · Answer

Hello Joshua Fallin, I had Rentals in Tampa, Florida for 30 years on my own. I would consider myself lucky if they moved out and did not wreck the property on the way out. "You can't get blood from a stone." If you sue in Small Claims, there is no way to Collect. Consider yourself lucky and just Sell, Sell, Sell.

Mya Toohey · Answer

@Joshua Fallin

It depends on how you wrote the lease. I would never make tenants stay in a house I've listed because most will sabotage it anyway.  You can sell with lease in place and make the new owner uphold your lease or give new owner option to buy them out. CASH FOR keys. I'm in the Tampa Florida market and very seldom do I see an occupied home in good shape.  Maybe that's just here, but, good homes with good tenants don't just get sold.

Erin Azar · Answer

I will go with this advice. No need to punish a good tenant, when it turned into an opportunity for you. Good Karma :)

Tim Herman · Answer

@Joshua Fallin  in most jurisdictions you will have the obligation of trying to rerent the property to mitigate loss to the tenants. Just like the tenant has the obligation to pay rent until another tenant is accepted. If you don't want to be a landlord then accept the September payment and list the property.

Tenant is breaking lease early, what are they responsible for?

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