Real Estate Agent · Los Angeles, CA · Member since 2021 · 20 posts · 12 votes
Just like the title, my tenant bought a house and plans to move out at the end of the month. Long story short, we have a lease until 05/23. He and his family have been GREAT tenants. Upon renewing our annual lease, he brought up a concern that he could purchase a house in the near future, and I plainly said, "I wouldn't hold you and keep you if you're going to purchase a house." Now just six months into our lease, he notified me that he plans to purchase a house, and will close by the end of the month.
My question is: "my tenant is willing to give me 200% of rent upfront for breaking the lease early vs. should I make sure he is responsible for payments until I find new tenants? FYI the property sits in a desirable area close to Tesla Gigafactory in Austin, TX. I'm guessing it shouldn't take two full months to rent out the property. Should I take the 200% of the rent upfront or make sure I cover my back and keep him accountable for the lease until I find new tenants? Thank you for your feedback.
Personally, if they have been good tenants, it is a desirable area, and offered you two months upfront, I would probably take it and get it rented out as soon as possible. You already said you told him you wouldn't hold him to it, so it sounds like they are trying to do the right thing by you. Also just request the ability to get in for showings, etc in exchange for breaking the lease.
Personally, if they have been good tenants, it is a desirable area, and offered you two months upfront, I would probably take it and get it rented out as soon as possible. You already said you told him you wouldn't hold him to it, so it sounds like they are trying to do the right thing by you. Also just request the ability to get in for showings, etc in exchange for breaking the lease.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
If you made a deal, honor it. If you have no deal in place with him, it sounds like you can get it rented quickly, so take the money. And don't make verbal deals any more...
Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
3y
Keep your word. In some markets- like where I'm at in Chicago. Getting them to agree to pay a few months extra to move out- is a win. It sounds like an ideal location for renting. I would start marketing/showing the unit now while the tenant is moving out. Best of luck!
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
See what your lease says, if you used HAR you are entitled to the remainder of the lease. If you like him I would have him pay until you can replace him and charge him that 200%
I charge an early termination fee like this. In most cases, I am able to find a new renter to move in within 14 days of the old renter vacating, so the termination fee is extra income.
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
3y
I agree with others on here. Good tenant, good area, compensated fairly for them breaking lease plus you saying you wouldn't hold them and them communicating with you ahead of time I would let them go.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
3y
Great counsel from everyone...and who knows, you might be able to rent it for even more. Check the market rent for that area and move on to even greater profitability. Congrats on having such great tenants!
I agree with others on here. Good tenant, good area, compensated fairly for them breaking lease plus you saying you wouldn't hold them and them communicating with you ahead of time I would let them go.
100% agree with this! I think good deeds go a long way around this time of the year. But also in future business dealings you may end up coming across this individual in the future in a professional setting. I think the generosity will go further than a few bucks in your pocket.
I agree with others on here. Good tenant, good area, compensated fairly for them breaking lease plus you saying you wouldn't hold them and them communicating with you ahead of time I would let them go.
100% agree with this! I think good deeds go a long way around this time of the year. But also in future business dealings you may end up coming across this individual in the future in a professional setting. I think the generosity will go further than a few bucks in your pocket.
Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 490 votes
3y
Hello, I would go by the early termination clause in your lease agreement- always. Never stray or make verbal agreements, they tend to get really sticky. Good luck and happy investing!
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
3y
Just keep it as clean as possible.
The more you work with them, the more likely they will be responsive to allowing showings/being flexible with showings and will probably keep your place as tidy as possible when they move out.
Property Manager · Raleigh, NC · Member since 2014 · 729 posts · 596 votes
3y
@Chan Park
I would not take the extra. What I would do, and have done several times, is explain the tenant they are liable for the rent up to the point I get a new tenant to sign a new lease. Once the new lease is signed, current tenants are off the hook.