Tenant Breaking Lease and moving to another state for new job

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Tenant Breaking Lease and moving to another state for new job

Kar Sun
Member since 2021 · 402 posts · 277 votes

Hello All,

My good tenant is breaking a lease and moving end of January.

Lease runs through end of May, 2021.

Tenant is aware that he is responsible for the lease until I find a new tenant or lease ends.

Do we have to do a final walkthrough before they physically leave the property end of January?

What about keys?

From my perspective the lease is not over, so I do not want to do a walkthrough as it may signify that I accept to end the contract.

Same goes for the keys.

My tenant's company will pay for him to return and do a final walkthrough at a later date.

I explained to the tenant that he is also responsible for utilities since I have to keep showing the property.

I do have a security deposit and intend to keep it until the lease end or new tenant move in.

Please let me know if I am doing it right.

Thanks

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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
5y

@Kar Sun welcome to BP! We do a walkthrough inspection with the tenant when all the stuff is gone, whether the lease is ended or still in effect. We take back the keys and remind the tenant of their obligation and that we will rent out the unit as soon as an appropriate tenant comes along. In our case it happens pretty quickly. We have very few tenants to whom we give a one year lease, most are MTM.

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    @Kar Sun welcome to BP! We do a walkthrough inspection with the tenant when all the stuff is gone, whether the lease is ended or still in effect. We take back the keys and remind the tenant of their obligation and that we will rent out the unit as soon as an appropriate tenant comes along. In our case it happens pretty quickly. We have very few tenants to whom we give a one year lease, most are MTM.

    1Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kar Sun - I learned long ago that sometimes it's best to just let someone go.

    They're moving out of the state.  You're not going to get anything or than wasted time.  Consider it bad luck.  Get the unit turned over ASAP and get it rented again

    0Reply
  • Kar Sun
    OP
    Member since 2021 · 402 posts · 277 votes
    5y
    Originally posted by @Bjorn Ahlblad:

    @Kar Sun welcome to BP! We do a walkthrough inspection with the tenant when all the stuff is gone, whether the lease is ended or still in effect. We take back the keys and remind the tenant of their obligation and that we will rent out the unit as soon as an appropriate tenant comes along. In our case it happens pretty quickly. We have very few tenants to whom we give a one year lease, most are MTM.

    Thanks Bjorn. 

    0Reply
  • Kar Sun
    OP
    Member since 2021 · 402 posts · 277 votes
    5y
    Originally posted by @Michael Ablan:

    @Kar Sun - I learned long ago that sometimes it's best to just let someone go.

    They're moving out of the state.  You're not going to get anything or than wasted time.  Consider it bad luck.  Get the unit turned over ASAP and get it rented again

     Thanks Michael.

    Tenant will be paying until we re-rent or lease ends.

    The question was about walkthrough and whether by doing a final walkthrough end of January we may forfeit the lease that expires in May.

    Nothing in our contract state so, it was more precautionary.

    The contact is silent on lease break on purpose.

    But when not following a contract the contract states it is a breach.

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  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Things like this happen but at least he is willing to work with you.  The fact that he is willing to come back for the final walkthrough says a lot especially since his company is willing to pay for it.  I would give 2 options, either continue with your plan and be responsible until I can find a renter or I'd also offer a clean break where he doesn't need to come back for the walkthrough and no longer responsible for the place until I find a tenant however there would be a 2 month lease break fee.  My old contracts used to say they were responsible for the unit until I got it rented but all my friends that rent say the 2 month is common in all their leases.  I think this is the best option for you and his company will probably pay it to avoid the risk of having to pay the remainder of the lease and utilities.  Even though it is winter people are still moving and I'm sure you can get a renter in that time period.  

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    It sounds like the tenant is working with you, so keep that momentum.

    I would conduct a walk-through with the renter after everything is removed and the unit is clean. If it looks good, let him know he will get the deposit back once the lease is formally terminated. Until then, you will market the rental and try to place a new tenant as soon as possible. Once the tenant is placed, refund any unused portion of rent and the deposit.

    If there are damages or cleaning during the walk-through inspection, let him know.

    Personally, I don't do final inspections with a renter present because they have a tendency to try and distract me or argue about anything I find. However, I realize some states require you to inspect with the Tenant present.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    I'd also do a walk through with them once their stuff is out and take photos.  Then do a second inspection on your own later (or just do it on your own and take photos as he seems to be working with you).  Get the keys from him once his stuff is out.  He's not coming back and why have him pay extra to mail the keys.

    Once he's out get it rented ASAP, same as you would have had he left at the end of his lease.  He's given you notice and worked with you, while he's still paying the rent, I wouldn't take advantage of that.

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