Tenant wants to break lease

Dallas, Texas
Dallas Real Estate Forum
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Tenant wants to break lease

Viral Mehta
Member since 2019 · 16 posts · 2 votes

Hey guys, 

I have a rental in Dallas and our tenants want to break the lease and move out early. I have communicated to them that I could accomodate their request by listing the house back on the market (for rent) and they would be liable for rent till the time a new tenant moves in as well as the associated marketing costs. 
The tenant is now not sure on their move out date. They want to move out once we find a new tenant so they dont have to pay for days when the house is sitting empty. Also, they want to list the house and find a new tenant. I have a few questions

1) Is it normal to list the house without knowing when the tenants will actually move out. They have commited to moving asap, once we find the new tenant but what if they cant move due to some unforeseen circumstance

2) I am leaning towards listing my house likely using my broker as opposed to having the tenant do the listing and coordination. Would you guys suggest otherwise? 

Thank you for your help. 

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Marci Stein
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
4y

First , you don’t have to let them out of their lease .
Also , you can’t find a new tenant unless you have a moving date to offer them. 

second , if they find a tenant , they must go through your screening process and be approved by you . 

third , if they move out and there is no tenant in place , they are still responsible to pay until the lease expires. 

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  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    4y

    First , you don’t have to let them out of their lease .
    Also , you can’t find a new tenant unless you have a moving date to offer them. 

    second , if they find a tenant , they must go through your screening process and be approved by you . 

    third , if they move out and there is no tenant in place , they are still responsible to pay until the lease expires. 

    4Reply
  • Viral Mehta
    OP
    Member since 2019 · 16 posts · 2 votes
    4y

    Thanks for your response Marci. Tenant is saying that they would like to post the rental with a move in date of asap (implying they can move out in a week if required). Is this normal or do I need a clean move out date from them. 
    The issue is they want to stay as long as a new tenant is found so they dont have to double pay rent - at my home as well as the next home they go to.

    Yes, they are okay with my screening process and approval. I still am not sure if i should let them do the tenant finding or just use my broker instead.

    0Reply
  • Mason Hickman
    Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
    4y

    @Viral Mehta

    You should 100% do the listing and marketing for tenants: who is going to have more of a stake in finding a good tenant: you as the owner or your tenant who will be long gone after breaking their lease?

    Also, I would just agree with the current tenants to some future date you will try a get a new tenant’s lease to start (say 4 weeks for example). If you can’t get a qualified tenant within 3 weeks, reset the timeline and try again.

    1Reply
  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    have it all in writing and signed.

    1Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    4y

    @Viral Mehta What Marci said. Tenants who rent asap are often a tad irresponsible. You want a tenant who plans to move, gives current landlord a 30 days notice...most require 60...and shops around then selects your rental.

    You do not owe your tenant help in reducing their cost to break the lease, especially if the cost is you ending up with a new tenant who needed to move asap due to poor planning, being behind in rent, or drama.

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    4y

    Do not under any circumstances let the tenant have any role in filling the unit, that should be done by you or someone who represents you. 

    Tell them you need a date they will be vacating and until then you will not be putting the unit up for rent. See how they react to that and take it from there. They are playing games and want the best of both worlds. 

    In the future, consider adding an early lease termination fee into your lease. It outlines a fee the tenant pays to break the lease, usually equivalent to 2 months rent. It takes the emotion out of situations like these. 

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    I would not let them find you new tenants.  If they have been good tenants and know people, they can let you screen them.  Tell them you need a move out date ideally 30 or 60 days' notice.

    Why don't you list it yourself?

    Where are they moving that they have the flexibility to move in whenever they want to?

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    4y

    1.  You need a move out date.....otherwise you're marketing something you don't really have?

    2.  You want to market and pick the tenant and control the process, not the tenant.

    3.  Would be nice to get it back in the Summer and get it on school year lease, vs February.  Will likely still lease now, but more demand in the school break typically.

    4.  What is their reason for wanting to move/break lease?   

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