Tenant Wants to Break 2-Year Lease After Losing Job — Property Manager Says $36,000

[Alan Salinas]

Body:
Hi everyone,

I’m working with a property manager and currently have a tenant who just renewed in June for a new 2-year lease. Unfortunately, she recently lost her job and requested to break the contract.

The lease states that she is responsible for the remaining rent to fulfill the contract (19 months), but here’s the situation:

• She actually improved my house (paint, light fixtures, added hardware to all cabinets and closet doors), so the property looks nicer than before.

• I personally don’t mind letting her go, because I would like to move back into the house myself.

• The property manager told me that if I move back in, they would charge her $36,000 (the remaining rent) as a penalty. They also said we owe $1,800, which is the minimum monthly management fees for the remainder of the contract.

• They said the only way to avoid her owing the $36,000 and us owing the $1,800 is if we leave the house as a rental and find a new tenant.

This sounds crazy to me — can they really charge her that much? Has anyone experienced a similar situation?

Any advice, opinions, or guidance would be greatly appreciated.

Thanks in advance!

[Jonathan Taylor Smith]

NO! Absolutely NOT... In NE (as in most states) when a lease is broken, while the tenant is technically on-the-hook for the remainder of the lease - the landlord also has a "duty to mitigate". Which means that you cannot just charge the remaining balance of the lease to the resident and allow it to remain vacant. You must do your reasonable best effort to re-rent the property to someone else, and the leaving tenant is only liable for the gap in-between residents. So more like a month a few, not 19!