3 mos in, tenant got a promo and wants to move, options?

Question

I'm a new landlord and just rented out a newly refurbished SFH in June of this year to a great tenant. She just texted me to tell me she got a promotion in another city and needs to move before school starts, this month! She signed a one year lease and has already paid me for August rent. I know that legally, I could hold her to the lease, but I'm not going to do that. There will be a little bit of touch up work needed to cover and repaint nail holes in the walls (she did the place out really nicely but there are a lot of pictures and decor up on the walls) Other than that there is no damage that I saw when I had to go in a couple of weeks ago to repair a leaky toilet valve.

My question is this. I now have to re-advertise the place and go through applications again and it could take a couple of months to get another tenant in there. Should I keep her deposit to cover this inconvenience and loss of rent? Or should I just make the transition painless and wish her well? Really would appreciate your opinions and comments.

My question is this.  I now have to re-advertise the place and go through applications again and it could take a couple of months to get another tenant in there.  Should I keep her deposit to cover this inconvenience and loss of rent? Or should I just make the transition painless and wish her well?  Really would appreciate your opinions and comments.

Dennis M. · Answer

I’d atleast Look up your laws in MO before you just shrug your shoulders and chalk it up to. A loss . Even if it’s not in your lease you may still be able to keep that deposit . Call an attorney maybe

Alison P. · Answer

@Tracy Streich, Thank you for that information.  Unfortunately, there isn't anything in my lease that specifies what happens in a lease break situation, but there will be now ;-).  I have been at this for only a few months and have already had enough things happen that I will be adding about 1/2 a dozen additional clauses into my lease, and mine was originally written up by an attorney! (A landlord friend gave me a copy of his to start me off and said it was pretty airtight).

This is certainly a steep learning curve, there seems to be yet another situation thrown at me from around every corner.  I'm so glad to have found Bigger Pockets and be able to learn from such experienced landlords.

@Dennis M. and @Max Tanenbaum thank you for your input too.

Tracy Streich · Answer

What does your lease say.   I have been doing this for 20 years.  I did not have this in my lease until this happened to me then I added it.   It sounds like she want to be reasonable.  We require forfeit of deposit, 30 day notice and buy out fee of 1 additional month of rent.  This may work in your market or it may need to be slightly higher or lower.   We do call it up front lease break fee.  You cannot continue to charge the old tenant rent while collecting rent from the old tenant.  For us this lease break fee covers the cost/time of releasing the property, especially if you have a property manager.

Dennis M. · Answer

I’d atleast keep her deposit for breaking the lease agreement