Tenant Early Termination Question
Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes
Tenant Early Termination Question
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Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes
5moCalvin, 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.
29 Replies
- Member since 2011 · 152 posts · 113 votes5mo
I'm in Erie, so same sate laws. Check to see if your lease has any special language about the landlord's right to terminate. Our lease says the tenant can cancel at the end of any month by giving 30 days written notice. At the same time they give the written notice they are to pay an amount equal to 2 months rent as a lease cancellation fee.
Otherwise, you could just grant their wish and give them notice to leave due to the lease violations according to whatever your lease says in terms of how long of a notice you must give them. Then, if they don't leave, you go to the District Judge. But, it sounds like they want to leave, so either give them a 30-day notice or let them give you one.
However, PA law says that if a tenant breaks the lease or is asked to leave due to violations, then the landlord can go after them for all the rent all the way to the end of the lease OR until the unit is rented again. You can also claim for utilities you paid until it was re-rented, out of pocket advertising, a reasonable amount for showing the unit until someone takes it, court costs, etc.. Can you actually collect? Probably not. But you can certainly deduct all those things from their deposit.
Maybe it's just time to let them exercise the "happy clause" and let them go, keep their deposit, and move on.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
I unfortunately do not have anything in my lease like that. Definitely worth adding, and I appreciate that advice!
Yeah they certainly want out so it shouldn't be an issue getting them to leave. I'm more worried about the cost of the turnover. If they are breaching the lease, do those same rules apply where I can have them continue to pay the lease until re-rented.
The only thing that impacts me in my lease currently is the fact that the security deposit must be returned 30 days prior to move out. So I'm interested, say they pay the rent for the first month they're gone. I'd have to return the security deposit at the end of that month. Then do I just lose the money if they don't pay the beginning of that next month?Lastly, should I get an attorney involved, or just write up a contract agreement stating: they must continue to pay rent until re-rented, or lease expires, when security deposit is returned, move out date, etc.?
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
@Calvin Spike, I am also in PA. A few thoughts:
1. Your lease should have language about early terminations to make this clear and so that you can add terms if you choose! It isn't required but I think its a good idea.
2. For example, you might add an early termination fee to compensate you for the work involved in the unexpected turnover.
3. It sounds like their lease violations are moot since they wish to leave.
4. For lease violations in general, you would start with a lease violation warning. You would cite the section of lease they violated and how. Then give them what they need to do to correct the situation and a clear time-frame.
For example: "Section X.x states that the tenant is responsible for lawn-care. The municipality issued a warning notice for high grass. To remedy this situation, you need to mow the lawn in the next 48 hours and keep the grass mowed under 8" at all times. Failure to comply could result in further action up to and including eviction.".
5. I would speak to the tenant directly first and then follow up with the written lease violation notice to document the issue.
6. In your situation, assuming there is no verbiage about early termination, the tenant would owe rent until you placed the next tenant.
7. However, you would also be obligated to make a good faith effort to place a tenant ASAP to mitigate #6.
8. In MANY cases, it is unlikely a tenant in this situation will continue to pay after they leave and since you want them out anyways, I would recommend negotiating a flat fixed amount to pay as a settlement.
I would explain how much they would pay if you do your normal turnover process and how if you have to sue them to get a judgement how that public record will follow them and see if they will pay something around half that amount perhaps.
9. Make sure you document any settlement agreed to in #8. When you terminate the lease, you need to document that as well and you can include whatever you agreed to in #8 with that.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Kevin Sobilo Regarding the lease language, you are correct, I do not have any language like this. I certainly will add this going forward, I appreciate the advice!
Regarding 4-5, luckily I did handle this perfectly and up to standards.
I appreciate that advice on the negotiation and steps following. Luckily my turnover process is typically pretty smooth because tenants are responsible for ensuring it's in the condition it was when moving in. With that said, do you think finding a middle ground such as having them move out the end of the month, then paying one months rent is something fair? Hopefully assuming I'll be able to get it rented again within a month. - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Calvin Spike:
@Kevin Sobilo Regarding the lease language, you are correct, I do not have any language like this. I certainly will add this going forward, I appreciate the advice!
Regarding 4-5, luckily I did handle this perfectly and up to standards.
I appreciate that advice on the negotiation and steps following. Luckily my turnover process is typically pretty smooth because tenants are responsible for ensuring it's in the condition it was when moving in. With that said, do you think finding a middle ground such as having them move out the end of the month, then paying one months rent is something fair? Hopefully assuming I'll be able to get it rented again within a month.I had a couple different tenants break their leases early last year, BUT these were both GOOD tenants. So, a little different situation. One finished their MBA early and was headed to Europe to play professional hockey and the other was having health issues and decided to move back to Texas closer to family and where they felt medical care was better.
I did these few basic steps with each:
1. I explained what they would be responsible for in full under the lease assuming a normal turnover time-frame.
2. I offered to accept a fixed payment of about half the #1 amount instead of what they would have owed.
3. They paid that amount agreed to in #2.
4. When we did the final walk-through, we discussed any damages and came to an agreement about those and I issued them a check for the remainder on the spot.
I offer #4 to all outgoing tenants. I rarely miss any damage of substance and I think it works well for everyone involved.
So, each of my GOOD tenants left on good terms using these steps.
You may have difficulty getting troublesome tenants to pay anything extra before leaving. So, you may end up just getting their deposit to go towards what they owe. Tenants like you describe often don't have enough money to pay you more and also get moved into someplace else.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Kevin Sobilo would #1 be the remaining rent payments?
Also, I can see why this is such an effective method. Straight to the point. - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Calvin Spike:
@Kevin Sobilo would #1 be the remaining rent payments?
Also, I can see why this is such an effective method. Straight to the point.
Yes, in your case #1 would be the rent payments during your normal turnover. So, if it takes you 6 weeks on average to turn a property that would be 1.5 months rent.
That is another key aspect, you can't "double dip", you have to prorate what they owe to the time the next tenant takes over. So, if that is mid way through the month that needs to be calculated.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
I unfortunately do not have anything in my lease like that. Definitely worth adding, and I appreciate that advice!
Yeah they certainly want out so it shouldn't be an issue getting them to leave. I'm more worried about the cost of the turnover. If they are breaching the lease, do those same rules apply where I can have them continue to pay the lease until re-rented.
The only thing that impacts me in my lease currently is the fact that the security deposit must be returned 30 days prior to move out. So I'm interested, say they pay the rent for the first month they're gone. I'd have to return the security deposit at the end of that month. Then do I just lose the money if they don't pay the beginning of that next month?Lastly, should I get an attorney involved, or just write up a contract agreement stating: they must continue to pay rent until re-rented, or lease expires, when security deposit is returned, move out date, etc.?
- Hey Calvin, I've been in a similar spot with one of my units in Ohio. Joel and Kevin are giving you solid PA-specific advice so I won't rehash the legal side. One thing I'd add from experience - if you can negotiate a clean break where they move out by end of month and pay one month's rent as a settlement, take it. In my case the tenant was so checked out that waiting around for them to pay rent while they were already gone was a headache I didn't need. Getting the unit back fast and in decent shape was worth more to me than chasing them for two more months of rent that I'd probably never see anyway. On the practical side - start advertising the unit the minute you have a move-out date in writing. I've had good luck listing on Zillow and Facebook Marketplace. I also use JiaNest (jianest.com) to keep track of all the turnover tasks - contractor scheduling, deposit accounting, lease paperwork for the new tenant. It keeps my head straight when I've got a unit turning over. Good luck with it. Even when they want to leave on bad terms, a clean exit is usually the win-win.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Jia Pan couldn't agree more on that last sentence. Never heard of JiaNest either, I appreciate that suggestion.
Luckily this is the exact route I took. We agreed on the end of the month, and another month's payment. Then obviously handling the security deposit per usual. Also have it listed on everything already.
Really appreciate the advice and help Jia!
- Member since 2011 · 152 posts · 113 votes5mo
Check out the book "Build Real Estate Wealth: Enjoy the Journey of Rental Property Investment." It covers stuff like this.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Joel Miller yeah that's currently on my list of recommendation. Based on this information, definitely sounds like I need to move it up that list.
Simple tips and tricks to assist with tricky situations like this are the greatest.
I appreciate the recommendation Joel!
- Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes5mo
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.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Stephen Delahoussaye Hey Stephen, I really appreciate the response.
Very true, I had to deal with that situation a couple months back. Was certainly way more of a headache than this.As for your solution, this is the exact method I ended up going with. Haven't gotten it signed yet, but that's the plan. I really appreciate the advice!
The security deposit situation is the exact same here in PA.Lastly, I really appreciate that clause advice. I have to check the specific PA laws, but it sounds like you've got a pretty strong lease with that clause in there.
I really appreciate your response Stephen!
- Rental Property Investor · Cleves · Member since 2023 · 132 posts · 82 votes5mo
hi, clients come & go. let them go, get some new folks.
- Real Estate Agent · Memphis · Member since 2026 · 583 posts · 345 votes5mo
Hey Calvin!
Personally, I’d try to separate the emotional side of the situation from the operational/legal side and just handle it systematically from here.
If both sides are ready to move on, I’d probably lean toward a written early termination agreement rather than letting things drag out. Typically that would outline:
• Move-out date
• Responsibility for rent until re-rented (subject to local law)
• How the security deposit will be handled
• Any agreed fees or conditionsI’d also be careful about the deposit timing and Pennsylvania requirements around itemization/return deadlines. Once the deposit is returned, unpaid rent generally becomes a separate collection issue rather than something you can offset afterward.
For me, the main goal would be getting clear documentation and minimizing further conflict while turning the unit over as quickly as possible.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Jim Johnson Thank you Jim for the sound advice, especially on the security deposit side of it!
- 5moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
If they want out early and you are fine with it-get it in writing with a hard move out date. You may find it easier to get it rented in the summer than in Sept or Oct.
Deposit is not returned until the keys are handed over, they are out and you've done an inspection. Check your local laws as to how long you have-1 week should be more than enough to do the inspection and figure out costs.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Theresa Harris Theresa I really appreciate the solid advice. PA here I have 30 days to return the security deposit and itemized deductions.
Also, is there a reason places typically rent out quicker during the summer?
- 5moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHey Calvin, if they want out early and you’re okay with them leaving, I’d probably handle it with a written lease termination agreement that clearly spells everything out. Usually you’d want it to say they’re responsible for rent until a new tenant is placed or until the lease end date, whichever comes first, and that you’ll make a reasonable effort to re-rent the unit. You’ll also want to outline how the security deposit will be handled, any cleaning/damage expectations, move-out date, key return, etc. One thing I’d be careful with is returning the security deposit too quickly if there’s still potential unpaid rent or damages. In a lot of cases, landlords will wait until they fully account for damages and unpaid obligations before sending the itemized deposit statement. Since landlord-tenant laws can vary by state, definitely make sure you’re following Pennsylvania requirements on timelines and allowable deductions. If they stop paying after move-out, that unpaid rent would generally become a collections/small claims issue unless you’re able to offset part of it through the deposit or get the unit rented quickly. Sometimes if the relationship is already going sideways, getting a cooperative move-out and a clean turnover can honestly save a lot of future headaches compared to forcing the lease to continue.
Quote from @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!
Jimmy Lieu, Red 1 Realty4.9120 Reviews- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Jimmy Lieu Hey Jimmy, I appreciate the advice!
I ended up going with an agreed fee route. The reason I chose this was because I'm curious on one thing. If for example we agree to them paying rent until a new tenant moves in. Say they move out and pay the rent June 1st, then I return the security deposit June 30th (required in PA). Then they don't pay the rent July 1st, and I still don't have a new tenant, and now I don't have a security deposit for unpaid rent. Would the only route be a small claims?
Because of this thought I ended up choosing the flat fee route. Awaiting an agreement from them though. - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Calvin Spike:
@Jimmy Lieu Hey Jimmy, I appreciate the advice!
I ended up going with an agreed fee route. The reason I chose this was because I'm curious on one thing. If for example we agree to them paying rent until a new tenant moves in. Say they move out and pay the rent June 1st, then I return the security deposit June 30th (required in PA). Then they don't pay the rent July 1st, and I still don't have a new tenant, and now I don't have a security deposit for unpaid rent. Would the only route be a small claims?
Because of this thought I ended up choosing the flat fee route. Awaiting an agreement from them though.Yes, I believe you are exactly on point with that reasoning. I have never read that their ongoing obligation to pay rent would be a reason to hold the security deposit longer.
Anything you can collect from them is a win! With a difficult tenant leaving, I would say the average would be to collect NOTHING and to end up retaining whatever is left after damages from the deposit to apply to the rent they would owe until the next tenant takes over. Depending on the amount of damages that could be very little.
So, since that is the "average" for a difficult tenant leaving early, anything you negotiate and collect better than that is a WIN!
It's not about what you are owed. You should NOT expect to collect 100% of what you are owed LONG TERM.
Work to make the AVERAGE of your outcomes the same or better than the average you reasonably anticipated or budgeted for from the start.
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Kevin Sobilo Kevin I appreciate the continued advice! Just trying to learn as we go.
Definitely need to add some things to my lease, and try and setup a better format for future reference.
- 5moBianca BarcelosBusiness MemberNH · Member since 2026 · 88 posts · 48 votes
This actually sounds like a "win-win" opportunity to part ways. If a tenant is already breaking rules and wants to leave, keeping them there often creates more headaches than it's worth. It sounds mutual, you wrote the rules so you're allowed to bend them if it makes sense for both of you - so, I'd agree on a move-out date and clarify that they are either responsible for rent and/or utilities until a new tenant is placed (or until the original lease ends) or that they incur a fee for breaking the lease early. The need to understand that there is a consequence to breaking the lease early but also that you're doing the right thing in not "making them stay". Definitely stick to your local laws on this, of course.
In the meantime, I'd start marketing the unit immediately to minimize any vacancy gap. Use this transition as a chance to define and tighten your screening process and clearly define your ideal tenant qualifications.
It’s better to have an empty unit for a few weeks than to keep someone in your investment who doesn't respect the rules or the space. Good luck getting it re-rented quickly!
Bianca Barcelos, Real Estate55 Reviews- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Bianca Barcelos Hey Bianca, I appreciate the advice and suggestions. Currently awaiting their response on an exact date for when they plan on moving out. Do you believe I should list the property now, or once there's a set move-out date?
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Azizul Alvee Azizul I really appreciate all the advice. I think that applying their deposit directly toward the lease break fee, if agreed upon, is a great idea. I really appreciate that insight!
Reaching out now - 5moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Quote from @Calvin Spike:
@Azizul Alvee Azizul I really appreciate all the advice. I think that applying their deposit directly toward the lease break fee, if agreed upon, is a great idea. I really appreciate that insight!
Reaching out nowBe careful with this because if there is damage, what money are you going to use to cover repairs?
- Investor · Pittsburgh, PA · Member since 2026 · 27 posts · 13 votes5mo
@Theresa Harris My security deposit is actually 2 months rent. So this could work in my scenario. They've also only been there for a couple months, so there shouldn't be any damage.
That is a good question though because if it's 1.5 or 2 months for the lease break fee, then the security deposit wouldn't cover it in most cases. Then if there is damage this could certainly exceed the deposit. Didn't even think of that.@Azizul Alvee ?
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