Does Anyone Use Early Termination Fee

2 Replies

In North Carolina, landlords are required by law to find a new tenant if an existing tenant decides they wish to break the lease for any reason. The existing tenant is only required to pay rent for the time before a new tenant is found. There is a benefit for me as the landlord in that there is zero vacancy. However, it seems more and more tenants are breaking leases and then I must make the effort to find new tenants. I am generally ok with this as again, zero vacancy, but, some tenants are breaking the lease after only a few months on a year lease. Does anyone know if I can include an early termination fee? If so, is there a limit on the amount?

@Curtis Mears breaking a lease is breach of contract. My lease specifies that if they break their lease they loose their deposit and are responsible for the remainder of the lease or until I re-rent the property. I have always been able to re-rent within days of someone moving out so this has never been a big deal. I wouldn't bother with trying to go after a renter for the rest of the lease as most of these people have no assets and I can't garnish wages in SC.

I do usually keep their deposit if they break the lease.

Few year ago when I signed a lease for half an year in RTP, NC, and in 10 days I got a new job in another state. The apt office told me I need to pay the two-bedroom apt until they can rent it out. So I paid 6 month and it seems they never rent that out or they rent it out and never let me know. 😄

To afford two apts at the same time is a little too much but that is part of my life.

For young professions, they have no choice to break the lease when their job changed. The open communication is necessary. If they have a job and responsible person they will be fair for landlord.