Tenant wants to break a lease 3 months after signing!

[Shane R Smith]

Hello fellow BP'ers,

The wife and I are having our first not quite sure what to do moment as landlords. 

Background: 

We bought our first duplex in October 2018. We inhearited 2 tenants that were had been there for 3 yrs. At the time a closing they were on month to month leases. So as typically recommended by most we got them into lease agreements. One of the two tenants requested a 18-24 month lease term, which we pondered doing. The concern we had is he did not pay a security deposit when he moved in 3 yrs prior. So we said we would consider an extended lease if he met us in the middle for a security deposit $300. So he was upset and didn't understand why he would need one since he was such a good tenant. So with that reaction and the first rent payment being 1 day late, which was an address error on his part, we decided to go with a 6 month lease. The 6 month lease was also to get us out of the snow months during renewal time. Without requesting a security deposit. That way if he was a trouble tenant we weren't stuck. 

Current situation: 

We just received a message from this tenant asking to break his lease at the end of February that way he could move into a place that uses longer than 6 month lease terms. 

Next steps: 

That's the question! We obviously could hold him to his obligation but then we risk a deposit-less tenant trashing the place. We could let him out but then we have no way to cover the vacancy due to, you guessed it, no deposit. If we let him out but require him to pay rent untill we fill it we could potentially not get the rent out of him for that as well.

Should we say we will sign a lease extension with aren't bump after the 6 months? Currently they are below market rents so we are trying to inch that up. 

Looking for advice from the more experienced folks.

Any advice us greatly appreciated!

Thanks, 

Melane investments LLC

[Thomas S.]

Tenants leave when ever they feel it is necessary. A lease is not binding on the part of a tenant and for that reason many of us highly recommend only using M2M leases to keep control in the landlords hands.

He is leaving, let him go, find a new tenant, charge full market rent and collect a deposit. You have two full months to find a new tenant. Tell him he needs to cooperate with showings and he can leave when he want's.   

There should be no reason you can not find a replacement by then. You will be much better off without him.