Termination fees... Upheld in court..?

Question

Colleen F. · Answer

I don't know if they are upheld in court but  it is better then being silent on this issue.  You can always dial back to actual damages resulting from the lease break by reducing it when it comes time.    It is always the hope not to go to court.

Also what is the rent?    A fee of $1500 is a lot for an $800 a month apartment but not so much for a place with much higher rent.  It is all relative to the cost of the apartment.

Christopher Gilbert · Answer

@Marcin Chruszcz

It depends on the situation and the judge.  In cases where the tenant loses their job or has some other hardship such as medical issues, I have found that courts are willing to award missed actual rent and damages and that is about it.  In cases where the tenant pulls a midnight move then the court will likely give you something extra but even then it is up to the judge.  I very highly doubt that they would award $1500 as that could be judged as excessive and predatory (in the courts eyes).  Remember that the judge sees these cases every single day so they are very aware of what going fines and rates are in your area.

Our standard lease form has a fee for breaking the lease early but it is usually half a months rent and the old tenant keeps paying rent/utilities until a new tenant occupies the unit.  Also remember that just because you get a judgment does not mean that you will actually ever see the money collected.  Courts can award you all the money in the world but it is solely up to you to collect it and if your tenant is truly broke you will never see a penny of that judgment.

The best defense is a good offense so do your due diligence up front and only accept in qualified and "stable" tenants as best as you can.