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Updated almost 2 years ago on . Most recent reply

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Luke Hoffman
  • Jasper, IN
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Tenant breaking lease before the 12 month mark

Luke Hoffman
  • Jasper, IN
Posted

The tenant informed me that they will be leaving at the 8 month mark of the lease. I use bigger pocket lease form for Indiana. Where does it mention what happens if they leave early? Do I get the other four months of rent?

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Scott Trench
  • President of BiggerPockets
  • Denver, CO
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Scott Trench
  • President of BiggerPockets
  • Denver, CO
Replied

@Luke Hoffman

The law seems clear to me. Yes, you have to make a reasonable effort, now that they've notified you, to re-lease the property.

I interpret that as posting the property for lease immediately, and beginning to show it to tenants, potentially arriving at zero vacancy. If you can "reasonably" do so, the vacating tenant may pay nothing besides the rent for the time they inhabit the property. 

Do you have to do this today? Maybe not. For example, it might be "unreasonable" to stop your vacation to the beach with your family, planned a year in advance, to post this listing unexpectedly. But it might not be "unreasonable" to post the property as soon as you return, or within a week of receiving said notice. 

Your lease does not override state law. If you are unable, with reasonable effort, to re-let the property, then both your lease and state law put the tenant on the hook for any rent owed. But, if you are able to do so, then they are not on the hook. 

I think the other commenter may be accurate in his area in North Dakota, but in Indiana, it appears that his approach is not consistent with your state law.

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