I have a renter that has told me they are buying a house. closing in October. They have been Paying on time but they will be breaking the lease at move out. I have a 750 dollar buy out in my leases. But now I wonder should I have them pay for the complete month of October or should I pro rate the rent in October Depending on There closing Date. Thanks for the thoughts. Terry J
How much lease is remaining? If the $750 is your damages as per your lease, then October should be charged just as if they were never breaking the lease at all and just left halfway through the month.
Don't allow renters to make their cost of doing business your cost of doing business. When I buy houses, there are certain things I just have to eat as a cost of doing business. For someone who has decided to break their lease to buy a house, there's no difference. Whatever your damages are as per your lease, should be charged to the tenant unless there's some remedy to the damages (i.e. tenant finds replacement acceptable tenant, some set lease break fee, etc). So you should charge as your lease holds forth.
Ok Thanks. The 750 is the lease break fee. We will be charging that. I will review that clause for future renters. They have been in about 6 months. should rent quick. I am planning to start advertising 30 days out. They did give me a 45 day heads up. Thanks again Terry J