Tenant Broke his lease without paying the buy out fee

[Corey G.]

Tenant informed me he wanted to move out about 6 months into his second year (about 30 days ago). He thought he went month to month after the first year but never informed me of it (which is required in writing) and I have the lease set to renew for another 12 months automatically written into the lease. Well I'm pretty sure he just moved out anyways without paying the buy out fee (2 months rent pretty much). I haven't had these terms written into my lease very long and the tenant that broke the lease previously went ahead and paid it. What is the suggested process for this? I'm very familiar with serving notice for things like late fees/evictions but never have tried to collect on this. Technically he's late on the June rent now as well. Should I serve a late notice and then eviction and add the fees up at the eviction hearing or is there a different/better way to do this? 

[Wesley W.]

I think you should have a mutually signed written acknowledgement of the lease renewal each year.  That would avoid this situation.  Not sure about AZ, but a judge where I am would be completely unsympathetic to a landlord in your case.  It would be a toss up if you would get a judgement, given the facts you've shared.  I say eat this one as tuition, and tighten up your processes.  I've made countless changes to my own documents/policies/systems, most of the time coming from an issue that was caused by the current process (or lack thereof) in place.  I try to learn from others to avoid the situations, but I give myself enough grace to make mistakes, but I insist on never making the same mistake twice. Thus, tightening up the gray areas.