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Updated over 10 years ago on . Most recent reply

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Vannak Kann
  • Fresno, CA
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Early lease termination of 1 year lease

Vannak Kann
  • Fresno, CA
Posted

Hi All,

Currently renting property in Fresno, CA. Tenant moved in in 02/01/2015 and lease won't end until 02/01/2016. However, on 04/01/2015 tenant told me that she probably want to move out because of the work issue and her daughter/son in law who live with her want to move back to Mexico. Tenant expressed that it will be difficult for her to pay the whole rent if her daughter/son in law move out. ( they are not 100% sure if they are moving in August/2015).

The tenant is letting me know as a courtesy. My question is:

If she is letting me know a couple  month ahead like this, What should I do with the deposit? Give her back or take it? and terminate the lease agreement?

She also express that she can continue to live there if insist ( which i don't think i can force her) I'm afraid that if she continue to live there, she might not be able to pay the rent? 

Please let me know what the best solution in this case.

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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

My preference would be to part on friendly terms.  I only do month o month lease because, as you're learning, a long lease isn't truly binding on a tenant.  That said, I do have an "improper lease termination" clause in my lease that specifies a "lease breaking" fee.  Its equal to the deposit.  That's more important when the tenant just disappears.  In a situation where the tenant is willing to work with me I would agree on a moveout date and treat it like a normal moveout.  If you have additional costs (advertising, showing) then I would charge those against the security deposit.

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