KY Law on Early Termination Fees
Hi Everyone,
My finance and I are new to the forums and have a buy and hold investment duplex in Covington, KY. We just received a 60-day notice that our tenant (an Airbnb host) is going to terminate her lease early. She currently leases both units of the duplex. Our lease states that she is to pay an early termination payment equal to two months rent. Our property manager says that as long as we get a new tenant before those 60 days then our current tenant does not have to pay us the termination payment because the state recognizes it as rent. Additionally, we would still have to pay the new tenant placement fees. I have copied and pasted the lease language from our signed agreement and would appreciate any advise. It doesn't seem right that she may get out of her lease early without having to pay any penalty fees but we are still responsible for the new tenant placement fees. Thanks so much and I appreciate any guidance. Happy quarantining!
EARLY TERMINATION ASSIGNMENT
7. Tenant may terminate this Lease at any time prior to its stated expiration date or any extension thereof by providing Owner with 60 days advance written notice of such termination plus a termination payment equal to two (2) month’s rent totaling $3,200.00, provided that a termination shall not be effective unless or until the Tenant has paid to Owner all sums due Owner as rent or other charges. In the event the requirements set forth in this paragraph are not complied with, Tenant shall remain responsible for rent until such time as the Lease expires or the premises are re- rented. Tenant shall not pledge or assign his/her leasehold interest or sublet the leased premises or any part thereof without the express written consent of the owner. In the event such consent is not obtained, any attempted assignment or sublease shall be null and void, and Owner shall not be bound thereby.