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Updated 1 day ago on . Most recent reply

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Nina V.
  • Investor
15
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35
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Newbie Landlord first breaking a lease

Nina V.
  • Investor
Posted

Hi All,

I'm a newer landlord, first time I have a tenant that is breaking a lease and I would like to know the process. Tenant wants to break lease mid June. The lease is through November.  This is what my lease agreement says that was signed 

  1. "Early lease termination: Fee to equal 1.5 times the total monthly rent." 
  2. I am confused do they pay rent through mid June and them 1.5X times the rent breaking lease fee? Or do they pay 1.5x the rent till I place a new tenant not to exceed November?

Thank you,

Nina

  • Nina V.
  • Most Popular Reply

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    Kevin Sobilo#3 Personal Finance Contributor
    • Realtor
    • Hanover Twp, PA
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    Kevin Sobilo#3 Personal Finance Contributor
    • Realtor
    • Hanover Twp, PA
    Replied

    @Nina V., I agree with most responders and disagree with one thing @Jim Johnson said. 

    It is NOT about "how it was intended to function". 

    There is a concept in contract law that says if a contract term is ambiguous that it shall be interpreted in favor of the party that did NOT write the contract. In this case, if you yourself question the meaning, it is to be interpreted in favor of the tenant. 

    That said, it is called a terminate FEE meaning it is meant to be a 1 time fee. So you charge prorated rent to the day they leave and then a fee of 1.5x rent. Thats all. 

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