Military tenant wants to break one year lease
We have a rental with military tenants, 4 months into a one year lease they want to know if they can break the lease so the 14 month old child can have a yard. I only charged 1/2 of the rent for a security deposit and waived the pet fee. The condo has brand new flooring, paint and carpet,dishwasher and fairly new with a lake view. Ulit in 2015. Being in the military myself and for the tenants really wanting the condo we waited over a month prior to them moving in and listened to them that they will be the greatest tenant ever. Etc..
I don’t want to give them a hard time but I also want it to be fair to me. This is the third tenant and we have not experienced anything like this before. Lessons learned for the next tenant to include an early lease termination agreement to actually write out what the consequences will be for example one or two months rent plus security deposit etc.
I need advice on what to do. Should I work with them to try to get new tenants to replace them and for them to stay till we find a tenant? Or should I have a termination fee of 2 months rent plus security deposit.? Pls advice,
#4 General Landlording & Rental Properties Contributor
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- Los Angeles, CA
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#4 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
They owe rent until you can get it re-rented or until the lease expires.
Early termination fees are quasi-illegal in CA. You need to word your lease carefully. Something like (and you should have your attorney word this), "Should tenant break lease, per CA law tenant is responsible for full rent until the unit is re-rented or lease expires. Landlord provides tenant (at tenant's decision) the option to limit potential damages by agreeing to pay 2X rent as lease break fee".
Thank you so much for your reply. Greg
You are right about the Termination of lease clause. I found it Thank you once more.
Early Lease Termination Fees
A lease with a clause the makes a tenant pay a set amount for breaking their lease early is illegal in this state. California caps what the landlord can recover when a tenant breaks a lease; they can only recover the actual damages suffered because of the termination of the lease. The landlord must mitigate the damages to re-let the property as soon as possible at the same rate. If the rental market is tight and the landlord can re-let the space right away, then the landlord hasn't experienced any major damages due to the breach.
#3 Managing Your Property Contributor
I would follow the terms of the lease-what does it say for breaking the lease? Unless they were going on deployment, I wouldn't treat them any differently than someone who isn't in the military.
@Flor Sulpacio don't save a unit and absorb vacancy for anyone even if they say they will be the best tenant ever and don't lower your deposit. They are responsible now until you find a new tenant. If they don't have orders changing their location they are the same as any tenant. And I would be a stickler on move out. Tell them you expect it to be move in condition They were there 4 months. Charge for wall patching for pics etc.
Quote from @Flor Sulpacio:
We have a rental with military tenants, 4 months into a one year lease they want to know if they can break the lease so the 14 month old child can have a yard. I only charged 1/2 of the rent for a security deposit and waived the pet fee. The condo has brand new flooring, paint and carpet,dishwasher and fairly new with a lake view. Ulit in 2015. Being in the military myself and for the tenants really wanting the condo we waited over a month prior to them moving in and listened to them that they will be the greatest tenant ever. Etc..
I don’t want to give them a hard time but I also want it to be fair to me. This is the third tenant and we have not experienced anything like this before. Lessons learned for the next tenant to include an early lease termination agreement to actually write out what the consequences will be for example one or two months rent plus security deposit etc.
I need advice on what to do. Should I work with them to try to get new tenants to replace them and for them to stay till we find a tenant? Or should I have a termination fee of 2 months rent plus security deposit.? Pls advice,
Sounds like you have been presented with an opportunity to help a veteran and increase your rents upon placing the next tenants. With all of the improvements you have done, is your asset located near hospitals or professional services wherein you could do an MTR?
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Real Estate Agent CALIFORNIA (CA) (#02109522)
- 209-409-4225
wanting a yard is not reason enough for me to let them out of the lease. I would allow it only if you are properly compensated for it
Some good advice here. Even if early move-out fees aren't in the lease, they are responsible for rent until you get it re-rented, or the lease expires.
The problem I see is that once they move out, they are almost definitely not going to pay you rent for any months they weren't there. So, if it sits vacant for 2 months, you probably won't get paid by them. So you either have to eat the cost or send them to collections.