As official and legally binding as leases are, sometimes tenants have to part from their rental before the lease is up. It’s a headache for both tenants and landlords who are involved with Castle Rock Property Management, so what’s the best way to deal with it?
Breaking a lease isn’t fun, for neither the tenant or the landlord. The tenant is usually in a situation where things are in flux, because they’re moving or some sort of change happened that caused them to make an adjustment in their living situation. It’s also not ideal for the landlord, because the process of getting a rental property ready for a new tenant is an arduous one – and that’s before that landlord has even started looking for another renter to fill the spot.
One big way to alleviate some of these headaches is to craft an early termination clause or buy-out option right into the lease the tenant signs before they move in. Set the fee at something typical, like a month or two worth of rent. Not only does a clause like this provide the Landlord some protection, but it also gives the tenant an easy way to get out of the lease. Make sure the clause included a minimum notice that the tenant can give to request early termination, the cost of any fees and what rent they are liable to pay, if any. It is important if you are dealing with Centennial property management and all of South Metro Denver property management to get this right upfront. That will keep things clear and allow for both sides to be on the same page.
Of course, there are a number of circumstances that can occur where the tenant is allowed to break the lease without penalty. Some of them are circumstances out of the landlord’s control (military deployments or issues with domestic violence). However, some are preventable from the landlord’s standpoint.
It is the landlord’s obligation when performing Parker property management to make sure the unit is safe and habitable – which means working electric, heat, plumbing, etc. – and if it becomes unlivable, the tenant is legally allowed to break off the lease. Intrusiveness can also become an issue. Just because you are the owner or a Lone Tree property manager of the rental property doesn’t mean you can come and go at will. The tenant is required to give written notice before terminating the lease if they believe the landlord is in violation. Make sure the amount of notice you’re required to give is outlined in the lease, and then follow those rules. The landlord expects the tenant to follow the terms of the lease, so the landlord should, too.
Just because the tenant wants to move (if they purchased a house, are moving in with someone else, or simply want to live somewhere else) doesn’t mean they’re off the hook for the lease. It’s the landlord’s responsibility to find another tenant to fill the unit, but the departing tenant can be formally asked to help with the process if they have a suitable option for a new renter or sign a new lease.
Like with any agreement, most of this boils down to communication. If a landlord has open lines of communication with their tenants, most of these troubles or concerns can be worked out at the time the tenant signs the lease so that both sides have the same expectation. Also, if those lines of communication are open and the landlord and tenant speak regularly, no one will be caught by surprise when the situation arise where early termination is unavoidable.
For more information on best practices for dealing with tenants that want to terminate their lease early, contact Jim Shonts at PMI Elevation today.