Howdy folks,
We rented out a unit to a tenant this past September and fast forward 2 months later, the tenant has indicated the rent is too high and has decided to move out. I'm waiting to find out when they will be moving out, but I gather it will be before 1 December and when the next month's rent is due. This is happening at the end of the month and without giving us as the landlords a proper 30 day notice.
I'm taking a closer look at a copy of the least we had the tenant sign, which we procured from here on BP, and I'm realizing there is no verbiage requiring that tenant's give a 30 day notice prior to moving out of their property. I'm kicking myself in the butt for not catching & adding this verbiage before I had the tenant sign the lease.
The tenant has been very nice and respectful, and I don't foresee any damages or uncleanliness to address as they've only been in the apartment for a few weeks. However, I would like to add the requirement for a 30 day notice to our lease for future use.
That being said, would anyone be so kind as to share the verbiage from their lease covering the '30 day move-out notice' period? (preferably from a NY State lease)
Thank you very much in advance and Happy Holidays!
@Chirag Gulati just emailed you my Connecticut apartment lease. Let me know if you have any questions, and please modify it to fit your needs, of course. If you see that I am missing something, please let me know so that I can add it to mine! This is how we can make CT a better rental market for everyone, landlords AND tenants...
30 days' notice is typical, so check your local laws. Of course add it to future leases, but the local laws should cover you. Get the move out day in writing. If they move out Dec 1 and you rent it on the 15th, keep 15 days of prorated rent from their deposit to cover that rent.
I am in CT, but here is what I use. It goes without saying, but I will say it - check your local laws. @Jim Peckey
32. MOVE OUT, CLEANING, VACATE NOTICE.
If Tenant intends to vacate the premises upon end of initial lease term, Tenant must provide notice in writing and must be received by the Landlord at least sixty (60) days prior to the date that Tenant intends to vacate the premises. In addition to Tenant's requirements to maintain the Apartment and yard, (if any), the Tenant must conduct its final cleaning and repairs to the premises on or before 5:00 P.M. on the last day of the Term. The Landlord will then conduct a walk-through of the Apartment to note any damages or failure by Tenant to adhere to the terms of this Lease. There will be appropriate charges deducted from the security deposit if the Tenant does not clean the Apartment and appliances prior to 5:00 on the last day of the Term. This provision shall survive the termination of the lease term.
@Jim Peckey the lease doesn't need to say anything about the Tenant breaking the lease. They signed for one year and are obligated for that term. If they leave early, they are still responsible for rent until a new renter takes over or their lease naturally expires, whichever occurs first.
Your tenant is leaving. Put the property on the market and look for a new renter. If the new renter takes over December 20th, charge the first tenant for Dec 1 - 20 and deduct it from their deposit, along with any cleaning and repairs. Refund the remainder. There's no loss to you and life goes on.
My lease has an early termination clause that states the renter is subject to termination fees if they move out early. I require them to give me 30 days notice in writing, pay a penalty equal to one month of rent, and allow me to market and show the home with "reasonable notice" (typically 24 hours). I require the penalty be paid at the time of notice or the notice doesn't count, and I don't let them use the deposit! After they are out, I handle the deposit like I would any other renter. If they follow this process, they get a good Landlord reference, I tend to make more money because I can find a new tenant in less than 30 days, and everyone is happy.
@Theresa Harris - thanks for the response! You're absolutely right, NY State does require both tenants and landlords to provide at least a 30 day notice before moving out/terminating the lease. I'll be looking to add this verbiage to our lease and at some point having an attorney review to ensure our lease is air-tight.
@Filipe Pereira - thank you kindly for the response as well as the 30 day notice verbiage from your lease good sir. I've confirmed that NY State does require tenants to give a 30 day notice before moving out - this also applies to landlords.
I'm noticing the verbiage in your lease, or at least the section you've shared, doesn't mention any sort of early termination fees. Do you account for that in a set fee? Or do you simply pro-rate the rent to account for 30 days from the date of notice, and deduct from the security deposit? (e.g. tenant pays rent at the 1st of the month, gives notice on the 20th of the month - do you pro-rate their rent to the 20th day of the following month?)
If you don't mind, I'd like to incorporate the verbiage from your lease into our lease. I realize that I'm covered by NY State law, but for the sake of being explicit, I'd like to ensure it's written into the lease and explained to the tenant during lease signing. To make sure our lease is air-tight, I'll certainly be engaging an attorney to review accordingly.
No problem @Jim Peckey. I believe that we all benefit as an industry when everyone has stronger leases. Send me an email or message me here and I will happily share my entire 15 page lease. Here's a section on payments due landlord for early termination (basically says all rent is still due) :
If the tenant fails to pay the rent, breaches the terms of the Lease, becomes bankrupt, or abandons the unit:
(1) The Landlord may immediately cancel this Lease, and shall become entitled, without any further notice to the tenant, to immediate possession of the unit; and
(2) All rent under this Lease shall immediately become due and payable, and the security deposit forfeited;
(3) The Landlord may sue to dispossess the tenant; and
(4) The Tenant shall be responsible for all legal fees and court costs incurred by the Landlord as a result of Tenants’ breach of any term of this Lease Agreement.
That being said, I would deduct from their security deposit any amount that would fulfill the 30 day notice. So if they gave you 15 days, they would be docked for the 15 days from their security deposit, or the number of days until you place a new tenant, whichever is less.
If you were called in front of a judge after having charged a full 15 days (but the tenant somehow knew you placed a tenant in 5 days) I can't imagine a judge would think it's fair for you to "double dip". I could be wrong, but it's better to not find out! Don't get greedy in this business.
@Nathan Gesner - many thanks for the response good sir! Currently, our lease is setup as month-to-month; being relatively new to landlording, I specifically went for the MTM lease to make it easier to part ways with tenant should either side be unhappy. This approach makes sense as I'm continuing to learn the ropes, but admittedly I'm now sure how a long(er) term lease would benefit/not benefit me.
If I understand your feedback correctly, the tenant is responsible to pay rent through the natural expiration of the lease (whether that's 1-year or month-to-month) or until a new tenant takes over/starts a new lease.
It makes sense the the lease doesn't need to include verbiage re: tenant breaking the lease and in my case, NY State Law, applies regardless of whether I have it listed in the lease or not. I know that NY State Law requires the tenant (or landlord) to give a 30 day notice to quit. I'm inclined to explicitly include this in our lease as a proactive measure and to ensure it's discussed at the time of lease signing with a new tenant, rather than the tenant being caught off guard should the issue arise, stoke anger and ultimately instigate a tenant to damage our property. As a very proactive person, this seems like a reasonable approach to me.
I'm realizing that we don't have an early termination clause/fee listed in our lease. In long(er) term leases like yours, it seems like that makes perfect sense and is reasonable - it doesn't seem very helpful in a month-to-month lease, at least in my newbie perception. Question: Is it legal to require payment of the early termination fee at the time of notice and ignore the notice if the tenant doesn't pay at the time of notice? I'd imagine that differs from state to state, I'll need to look that up for NY State for sure. We do have listed in our lease that the unit can be shown to prospective tenants once notice to terminate the lease is given, with a 24hr notice of course.
Now you have me revisiting the decision of going with a MTM lease over a 1yr lease. Is it just as easy to terminate a MTM lease with an undesirable tenant as it is with a 1yr lease? I certainly wouldn't mind accommodating a tenant if they wanted to terminate the lease early due to some fault of my own, but being the proactive person that I am, I bend over backwards to make sure my end of the lease agreement is followed to the T.
If the tenant is on a month-to-month and they fail to give the appropriate notice, the day you discover they are leaving would likely be considered the day of notice. So if your tenant disappears without saying anything and you discover it on March 7th, you would count that as the notice date and the Tenant would be responsible for rent and other terms for 30 days from that date. If they give you notice on March 7th that they intend to be out March 31st, they are still liable for the full 30 days from the date of noticing, meaning April 6th. Make sense?
Month-to-month may be a better option for you but it really depends on your location. If evictions are difficult in your area, a M2M may be the best option. Just keep in mind the tenant may refuse to leave even after you serve them the 30-day Notice.
The long-term lease with penalty for early termination is the best option (in my opinion) for an experienced Landlord in an area that has reasonable laws and courts.
No problem @Jim Peckey. I believe that we all benefit as an industry when everyone has stronger leases. Send me an email or message me here and I will happily share my entire 15 page lease. Here's a section on payments due landlord for early termination (basically says all rent is still due) :
If the tenant fails to pay the rent, breaches the terms of the Lease, becomes bankrupt, or abandons the unit:
(1) The Landlord may immediately cancel this Lease, and shall become entitled, without any further notice to the tenant, to immediate possession of the unit; and
(2) All rent under this Lease shall immediately become due and payable, and the security deposit forfeited;
(3) The Landlord may sue to dispossess the tenant; and
(4) The Tenant shall be responsible for all legal fees and court costs incurred by the Landlord as a result of Tenants’ breach of any term of this Lease Agreement.
That being said, I would deduct from their security deposit any amount that would fulfill the 30 day notice. So if they gave you 15 days, they would be docked for the 15 days from their security deposit, or the number of days until you place a new tenant, whichever is less.
If you were called in front of a judge after having charged a full 15 days (but the tenant somehow knew you placed a tenant in 5 days) I can't imagine a judge would think it's fair for you to "double dip". I could be wrong, but it's better to not find out! Don't get greedy in this business.
@Chirag Gulati just emailed you my Connecticut apartment lease. Let me know if you have any questions, and please modify it to fit your needs, of course. If you see that I am missing something, please let me know so that I can add it to mine! This is how we can make CT a better rental market for everyone, landlords AND tenants...