Early termination of lease
I rented my Airbnb property to a couple for 8 months using the Bigger Pockets lease packet. The couple decided to move 2 months before their contract ended. They are now asking if I can rent it via Airbnb, and if I can will they get some of their rent money back? This is a first for me, and I am not sure how to handle it. They have been out since the 1st of the month, all belongings are gone, and keys have been returned. I have someone inquiring about renting the house for the last weekend of the month. Do I deduct what I would receive from the new guests, or do I have to leave the house vacant until the end of their lease, if I expect to collect the rent? Appreciate any insight you can provide.
Legally you need to follow the terms of the lease. Ethically I have always credited rent back to the tenant if I got another tenant in place at or above the previous rate.
This is from our lease...My interpretation is I can rent it and deduct what I take in from Airbnb from their rent. Do I have to give notice to them when we are at the property or when guests are renting the property? Or because they have surrendered the property they no longer have legal ties to it?
IMPORTANT: THIS LEASE IS A LEGAL DOCUMENT WHICH HAS IMPORTANT LEGAL CONSEQUENCES
If the Tenant vacates before the last day of the tenancy, and gives Landlord written notice that Tenant has vacated, surrender occurs when Landlord receives the written notice that Tenant has vacated. If the Tenant mails the notice to Landlord, Landlord Is deemed to have received the notice on the second day after mailing, If Tenant vacates the Premises after the last day of the tenancy, surrender occurs when Landlord learns that Tenant has vacated. If Tenant abandons the Premises before expiration or termination of this Agreement or its extension or renewal, or if the tenancy Is terminated for Tenant's breach of this Agreement, Landlord shall make reasonable efforts to re-rent the Premises and apply any rent received, less costs of re-renting, toward Tenant's obligations under this Agreement. Tenant shall remain liable for any deficiency. If Tenant Is absent from the Premises for two (2) successive weeks without notifying Landlord In writing of this absence, Landlord may deem the Premises abandoned unless rent has been paid for the full period of the absence.
Quote from @DeEtte Hunter:
It is important to know your laws and your lease. Here's a quick guide: https://datcp.wi.gov/Documents...
When a Tenant breaks the lease, you are obligated to look for a replacement tenant. The departing Tenant remains liable for rent and other costs until a new Tenant takes over. If you found someone to rent starting March 25th, then you can only charge the old Tenant through March 24th and then they are free of all obligations.
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
Most lease contracts include language requiring that the Landlord make reasonable efforts to re-rent the premises. In my experience, though, the relationship with the prior tenant is ended once a new tenant is procured. Your lease, which requires that the new tenant's rent be applied to the vacating tenant's balance, seems unnecessarily complicated in my opinion
In the future, you might consider adding language to your lease that implements an "early-termination fee."
Basically, my preferred way to deal with early terminations is to charge an early-termination fee equivalent to one month's rent and end the vacating tenant's lease obligations once a replacement tenant is successfully procured according to the same lease terms (i.e. you are not lowering the rent for the property).