Missouri Tenants Want to Break Their Lease to Care for a Parent—Is This Buyout Fair?

Question

My tenants have asked to end their lease early because one of them needs to move closer to her mother to care for her. I understand the circumstances and want to find a reasonable solution while protecting myself from the costs of an unexpected vacancy.

The property is in Missouri. Rent is $1,700 per month, and their lease runs through September 2027. There is no specific early termination or buyout clause.

I’m considering a written agreement requiring approximately a $5,000 buyout in exchange for releasing both tenants from their remaining lease obligations.

To clarify the deposit accounting: I already hold their $1,650 security deposit. They would pay $5,000 in new money, bringing the total I hold to $6,650. I would then handle their existing deposit through the normal inspection and refund process. If there are no lawful deductions, I would return the $1,650, leaving me with $5,000 as the buyout.

That amount is almost equivalent to two months’ rent plus $1,650, but the existing security deposit would remain separately refundable. I haven’t presented or finalized this offer yet.

Would you consider this a fair approach, or would you handle it differently? I’d especially appreciate hearing from Missouri landlords who have negotiated an early release for a tenant facing a family caregiving situation.

Note: They have been generally good tenants, late here and there but always paid, even with the late fees ($10 per day for as long as it was late). i hate to lose them, if I am being honest.

Lee Futcher · Answer

Hi @Abram Edawrd Inman,

I can understand why you're torn on this one. They've been good tenants, they're leaving for a really hard reason, and you'd still be carrying the costs if the house sat empty for a month or two.

I think your structure is fair, and keeping the $1,650 deposit completely separate from the buyout is smart. It keeps the move-out inspection clean and avoids any argument later about what each dollar was for. Two months' rent is roughly what an unplanned vacancy and a turnover can cost, so $5,000 isn't an unreasonable number.

If I were in your shoes today, I'd give them two options in the same letter. The first is your $5,000 buyout and a clean release on a date you both agree on. The second is that they keep paying the $1,700 until you sign a new qualified tenant, and the day that new lease starts, they're released with nothing more owed. You could start marketing the house right away and ask them to keep it show-ready. Good tenants usually appreciate having a choice, and if the house rents quickly, the second option could cost them less while still fully protecting you.

Whichever way you go, I'd put the release in writing with the move-out date, the amount and a line saying the deposit is handled separately under the normal process. I'm not a lawyer, so it's worth having a Missouri landlord attorney look over the wording before anyone signs.

All the best with it,Lee

Leo Stein · Answer

Hi Abram, I have been on both sides of this with good tenants, and I think your structure is reasonable. One thing I would add is to put the practical stuff in the release too. Agree on a firm move-out date, a walkthrough a few days before with photos, and permission to show the house during the notice period so you can start marketing right away. Good tenants usually cooperate on showings when they know the buyout is waiting on a clean handoff. Also get a forwarding address in writing so the deposit paperwork has somewhere to go. If they decide to leave sooner, you may prefer the lower number in exchange for a quick, tidy exit. Have a Missouri attorney read the wording, this is general info, not legal advice.

All the best,

Leo

All the best,

Leo

John Cafarelli · Answer

Hi Abram — this sounds like a fair starting point, and the way you are thinking about it is exactly what experienced landlords recommend: keep the deposit accounting completely separate from any buyout, and put everything in a signed written release.

A system that works well is to spell out, in one document, the move-out date, the buyout amount and due date, how the deposit will be handled through the normal inspection and state timelines, and that both tenants are released from the remaining lease once those terms are met. That avoids the most common confusion later, where a tenant expects the deposit to count toward the buyout or a landlord expects it to cover turnover costs.

Most owners find it helps to give two clear options in writing — for example, the buyout you described, or staying through the lease with the usual notice terms — so the tenants can choose rather than negotiate back and forth. Also check Missouri's deposit return deadlines and document the unit's condition with photos at move-out, the same way as any other turnover.

Because the lease runs to September 2027, it is worth having a local attorney or experienced property manager review the release wording before anyone signs, especially since there is no early-termination clause in the current lease. Good luck with a smooth transition for everyone.

Addy Chupa · Answer

Abram, the other replies cover the structure well, so I'll just add the numbers side, because it can help you decide whether $5,000 is the right figure or just a round one.

At $1,700 a month, each vacant day costs about $55.89 ($1,700 x 12 / 365). So the buyout covers roughly 89 days of an empty house. Before you settle on the number, add up what a turnover would realistically cost you: days to re-rent in your area at this time of year, cleaning and paint, any listing or leasing costs, and the utilities you carry while it sits. If a realistic total is closer to $3,000, the two-option letter Lee described probably works out better for everyone. If it's closer to $5,000 because winter re-leasing is slow, your number is well supported.

Two smaller things worth thinking about:

1. Timing of the next lease. If they leave in winter, you could write the new tenant's lease to end in late spring or summer rather than another winter month, so you aren't repeating a slow-season turnover next time.

2. Taxes. In the US, a payment a tenant makes to cancel a lease is generally treated as rental income in the year you receive it (IRS Publication 527 covers this), while a deposit you return isn't income. Recording the $5,000 as its own line, separate from the deposit, keeps that clean at tax time. Worth confirming with your tax preparer.

It's clear you want to treat them fairly, and putting the math in front of them can make the conversation easier too.

Carl Millsap · Answer

@Abram Edawrd Inman your approach is spot on and fair. 1. Update your lease with the buyout clause so future tenants know upfront if they want to break the lease what the process / fee is.

2. @Lee Futcher's suggestion for two options is a good compromise people like to have options but at the end of the day you need to cover for the unexpected down time, turn, marketing and leasing process.

Whichever option they chose it has to be in writing. I'd go so far as notarized and ensure you have the information necessary to make it stick.

3. If they leave do you have the information to ensure the charge follows them? I have a clause in my lease that any unpaid balance will be turned over to collections, and can be placed on your credit report. In order to do that you need the necessary information. I'd make this part of the written agreement

Hope this helps.

Jaimee LaTorra · Answer

This is a tough situation, it's always tough to lose good tenants, especially to life circumstances :/

I do think timing is an important part of this. If they move out in December or January you're listing in the slowest stretch of the year, so there's definitely real vacancy risk behind that $5,000. If they can leave in the spring it's a lot lower.

I'd tie the number to the date, something like the full $5,000 for a winter move-out and less if they give 60 days notice and leave in March or later. Either way they keep it show-ready so you can start listing before they're gone. And when you sign the next tenant, think about the term so the lease doesn't end in the middle of winter again. A 15 or 18 month lease that lands in May or June makes the next relist a lot easier.

BJ Everson · Answer

Abram, your structure is fair and keeping the deposit separate is the right call. Two things I'd add. First, price the vacancy for the season you'll be listing in. Winter listings often take longer to lease, so check recent days-to-lease for similar rentals near you before you settle on $5,000. Second, before you finalize, confirm what Missouri law expects from a landlord when a tenant leaves early, such as whether you have to make reasonable efforts to re-rent. That affects what you could recover without an agreement, which makes it a useful benchmark for the buyout. Then put the move-out date, access for showings and photos, the buyout and the mutual release in one signed document.

Jim Johnson · Answer

At $1,700 a month, a $5,000 buyout is almost three months of rent. That feels a little high without knowing how long the property might actually sit vacant. Since they've generally been good tenants and are leaving for family reasons, I'd lean toward an amount based on realistic vacancy and turnover costs rather than automatically charging that much.

Keeping the $1,650 deposit separate is the right approach. Whatever you agree on, I'd get the early release terms in writing and have a Missouri attorney review them, especially since the lease doesn't already include a buyout clause.

Abram Edawrd Inman · Answer

Thanks, Drew. I think there may be some confusion about the deposit. The proposed buyout is $5,000 total, just under three months’ rent. Their existing $1,650 security deposit would remain separately refundable through the normal move-out accounting, so I wouldn’t be keeping $6,650.

I’m also considering exactly the alternative you described: advertise now, coordinate showings while they’re there, screen a replacement tenant, and release them when the replacement tenancy begins. They would continue paying rent until then, no later than their existing lease expiration.

Nothing has been finalized. I’m weighing a fixed buyout against that approach and appreciate the feedback.

Divin Kanyama · Answer

@Abram Edawrd Inman I think it's a fair approach, and keeping the security deposit separate from the buyout is smart. Put it all in a signed termination agreement with the move-out date, buyout amount, mutual release and deposit timeline.

$5,000 is about three months' rent, which is on the generous side. You could offer two months with 60 days' notice, which gives you time to re-rent and may avoid a vacancy. I'd have a Missouri landlord-tenant attorney review it. Good luck, and sorry you may lose good tenants!

Missouri Tenants Want to Break Their Lease to Care for a Parent—Is This Buyout Fair?

Missouri Tenants Want to Break Their Lease to Care for a Parent—Is This Buyout Fair?

Most Popular Reply

13 Replies