Tenant Early Termination Question

[Calvin Spike]

I've got an issue that's come up which I have no crossed yet. I am a landlord located in the Pittsburgh, PA area. I have a tenant who would like out of their lease early. They've been breaking a bunch of rules stated in the lease, which I've had to talk to them about. Because of this issue and disagreement, they would like out of their lease early. 
I'm wondering how exactly I should handle this? Do I respond suggesting a written agreement where they become responsible for continuing to pay the rent until the unit is re-rented? Their lease expires 9/30/26. Also, in my lease I agree to returning the security deposit within 30 days. Say I return this lease after the allotted 30 days, and they stop paying the rent until it's re-rented, how do I go about that unpaid rent. 
Would appreciate any advice on how you guys would best handle this situation. Thanks!

[Stephen Delahoussaye]

Calvin, I have dealt with this exact situation more times than I can count managing rentals in Nashville. The good news is that a tenant who wants to leave voluntarily is way better than one you have to drag through eviction court while they trash the place on the way out.

Here is what has worked well for us. Get a written mutual lease termination agreement signed by both parties. In that agreement spell out the exact move out date, the condition the unit needs to be returned in, and what happens financially. We typically require the tenant to pay rent through the end of the month they are leaving plus a termination fee equal to one month of rent. That termination fee covers the cost of turning the unit, marketing it, and absorbing the gap between tenants.

On the deposit front, do not commingle the termination agreement with your normal security deposit process. In Tennessee we have 30 days after move out to return the deposit or provide an itemized list of deductions, and I imagine Pennsylvania has a similar timeline. Keep those two things separate because they serve different purposes. The termination fee compensates you for the early break. The deposit process handles damages to the unit.

The biggest mistake I see landlords make in this situation is trying to hold the tenant to the full remaining lease term out of principle. In practice, a tenant who wants to leave badly enough will stop paying, stop maintaining the unit, or make your life difficult in ways that cost you more than the early termination fee would have covered. Taking the deal and getting the unit back in good condition on a known date so you can turn it quickly is almost always the better financial outcome.

For your next lease, I would strongly recommend adding an early termination clause upfront. We include one in every lease that allows the tenant to terminate with 60 days written notice plus a fee equal to two months rent. Having that clause in place from day one sets clear expectations and eliminates the negotiation you are going through right now.