Tenants want to end the lease early

Fayetteville, North Carolina
General Landlording & Rental Properties
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Tenants want to end the lease early

Destry Dylan Thomas Sholder
New to Real Estate · Fayetteville, NC · Member since 2022 · 2 posts · 4 votes

I recently received the following text from my tenant:

"Hey I was wondering if there's any way you'd be open to ending our lease early in hopes of finding a new tenant. My wife and I are divorcing and I haven't even been able to live there for the past four or five months, but I didn't want to put her in a bad situation paying for the rent all on her own. Now that she said she would have somewhere else to stay I figured I should throw the idea out there to you."

How would you go about this situation?

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Ned J.Pro Member
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
2y

Let them go.... with the stipulation that you can start advertising and showing the unit ASAP- they make sure the unit is in good condition and kept clean during the process.

When people need/want to leave, they will..... the lease wont stop them. Rather than make it some battle you will likely not "win", make it amicable, smooth and easy with a minimum of stress and $$ lost on an eviction or trying to collect $$ you will never see. Let them leave smoothly and get it rented again and move on

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  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    2y

    What are the current lease clauses for early termination?

    It's important to reassess the income for requalification. Introducing a new tenant will necessitate an amendment to the existing lease, and you should conduct a thorough screening as you would for any new prospect.

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    2Reply
  • Julie Garner
    Member since 2023 · 40 posts · 44 votes
    2y

    Personally, I'd charge an early termination fee and find a new renter.  He's already let you know that she's not going to be able to pay her rent.  With a divorce on the horizon, being late on her rent probably isn't going to be at the top of her list of things to "fix."

    3Reply
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    2y

    Let them go.... with the stipulation that you can start advertising and showing the unit ASAP- they make sure the unit is in good condition and kept clean during the process.

    When people need/want to leave, they will..... the lease wont stop them. Rather than make it some battle you will likely not "win", make it amicable, smooth and easy with a minimum of stress and $$ lost on an eviction or trying to collect $$ you will never see. Let them leave smoothly and get it rented again and move on

    8Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Destry Dylan Thomas Sholder I’ve discovered it’s just better to let tenants leave than risk them destroying the unit or not paying for months or getting involved in a lengthy eviction. It isn’t fair to us as landlords but if handled properly it can make the situation so much better for all involved.

    Since it’s spring see if you can get them out by the end of May at the latest when it’s prime time for people to be ready to move to new locations and it should be easier for you to re-rent the unit.

    5Reply
  • Ricardo R.Pro Member
    Property Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
    2y

    Let them go but account for that on your lease. 

    [email protected]810-844-1104
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    Start looking for a new tenant and once they are in place, let the others guys go.  Otherwise have them pay an early termination fee and be done with it.  They've probably already paid March's rent, so see if the house is vacant and if you can start showings now and get a tenant in place for April 1.  The timing is right.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Destry Dylan Thomas Sholder:

    1. I offer tenants the option of terminating early. To do this, they have to pay a termination fee equal to 1.5x monthly rent, give 30 days notice, and let me market the property during their last 30 days of occupancy. Most tenants accept this, it works great, and it puts more money in my pocket. 

    2. If they can't/won't pay the termination fee, then I let them leave but make it clear they are responsible for the terms of the lease until a new tenant is found. I start looking for a new renter. If the original tenant leaves March 31st and I put a new tenant in on April 15, then the original tenant has to pay the 15 days that the unit was vacant.

    I'm more willing to work with tenants that are honest and communicative. There's no point in making their lives miserable and forcing them to fulfill the lease. Find a solution that works for all parties and pat yourself on the back for being a good human.

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    3Reply
  • Jon Puente
    Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes
    2y

    Hey Dylan,

    I would work with them and figure out a solution to let them go.  Make sure there is nothing broken/damaged on the property and start advertising to get the property rented. 

    Hey - At least they gave you a warning and let you know the situation they're facing!! Time to be a human and work with them. Depending on your lease, this is also grounds for keeping their security deposit so use that as needed. 

    1Reply
  • Mose Gebremeskel
    Investor · Member since 2022 · 234 posts · 144 votes
    2y
    Quote from @Ned J.:

    Let them go.... with the stipulation that you can start advertising and showing the unit ASAP- they make sure the unit is in good condition and kept clean during the process.

    When people need/want to leave, they will..... the lease wont stop them. Rather than make it some battle you will likely not "win", make it amicable, smooth and easy with a minimum of stress and $$ lost on an eviction or trying to collect $$ you will never see. Let them leave smoothly and get it rented again and move on


     100% agree with this

    0Reply
  • Marcus R.
    Real Estate Agent · Denver CO · Member since 2019 · 209 posts · 332 votes
    2y

    Another vote for @Ned J.'s suggestion.  Not worth the fight and we're approaching high season. 

    1Reply
  • Grace GudenkaufPro Member
    Rental Property Investor · Tucson AZ · Member since 2023 · 35 posts · 18 votes
    2y

    Definitely make sure to have a lease termination fee already spelled out under your next lease. In this case, I would do my best to help them without causing my business financial loss. For example, you could post the listing and then once you have found a qualified tenant you could end the previous lease. So don't bend over backwards but also if there is a way for you to help them out while keeping your bottom line I think that is the best way to go. 

    1Reply
  • Mak J.
    Member since 2018 · 234 posts · 44 votes
    2y

    I would let them go and keep the deposit. If you say no, they will break the lease anyways and go. Better let them go.

    0Reply
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