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June 15, 2009
Tenant Breaking Lease?
Our tenant informed that he wants to move out early – break the lease before it expires on 31 August. The tenant has vacation plans and other family commitments etc which will keep him out of town at the end of August so that he would not be around to move out on 31 August. The tenant has requested to move out earlier by 15 July or 1 August. Note, this is a 2 family house.
We (landlords) have made plans taking into consideration that the lease will expire end August. We will not be in town at the end of July or early August.
Is it just me, or is it unreasonable that a tenant request to break a lease in this fashion? I have rented for 15 years before buying a place and I do not recall ever breaking a lease, and the one time I did, I had to pay a 2 month penalty. In this case we are talking about 4-6 weeks difference….
What would you do ?
Note I believe current contract is silent on issue of breaking a lease – it does not provide for it.
Crown Heights Happy
Comments
I would just let them break the lease, saves you headache and time in courts etc.....
Posted by: armchairwarrior at June 14, 2009 6:31 PM
but 15 July is somewhat soon, and we are not here to oversee a 1 August move in of a new tenant....
Posted by: crownheightshappy at June 14, 2009 6:48 PM
Did you explain to your tenant that you also made summer plans based on the assumption that you would have rental income through the end of the lease? 2 weeks notice is really not reasonable, though the same thing just happened to me and I was so glad to see those tenants go I actually got them to move out even earlier. I handled it in a way that was the least stressful for me which was to let them out sans penalty. That said, I don't think it would be unreasonable for the tenant to be responsible for at least part of the month they're defaulting on. Maybe a compromise would work? Have them pay for 30 days since that's the norm, so I guess that would mean they'd get half their security deposit back. Something like that.
Posted by: herkimermaid at June 14, 2009 7:56 PM
Hey rents are going down it is a renters market. After years of total abuse by homeowners I would finally say Amen. Suck it up you have had it good for too long wait until you get tenents that don't pay rent because of the economy then you will bless the tenents you have now.
Posted by: hannible at June 14, 2009 9:31 PM
He's on the hook until you rent the apartment if he vacates before lease end without your express permission.
Posted by: IronBalls at June 14, 2009 11:28 PM
I don't know what your lease says but tell him he can move out Aug 1st and that he could/would lose his security, then doing the math, it maybe worth just letting him go. If not, he's responsible for paying rent until the end of August.
Posted by: Crownlfc at June 15, 2009 12:59 AM
How could say you don't recall ever breaking a lease and then provide details about the time you broke a lease?
Posted by: Art Salt at June 15, 2009 10:44 AM
You are a business person that makes an income from a rental property. You have been making a profit as a landlord. Part of the price is that you have to keep the property up and share your home with people who are contributing to your mortgage and maintainence.
If you made too much money and reimburse the tenant then you could complaint as hard done by. Otherwise you should just take your lumps as part and parcel of doing business.
Posted by: oldtimer at June 15, 2009 11:03 AM
if it's just about the convenience of the move-out date, offer to have him move out 9/15.
Posted by: joe_the_bummer at June 15, 2009 11:04 AM
You should offer to extend the lease an additional month to the end of September to avoid any hassle about the convenience of move outs. If the tenant turns it down, then absolutely keep the security but try to find a tenant who can move in after you get back to town in August. If you find someone acceptable, then return whatever portion of the security is pro rata appropriate, or else bill the tenant for any shortfall.
Posted by: Boerumresident at June 15, 2009 11:12 AM
Let 'em out. Learn that, as a landlord, you have to account for these relatively minor cashflow inefficiencies. You have the WHOLE SUMMER to fill the vacancy. Good luck.
***Bid half off peak comps***
Posted by: Brownstones Half Off at June 15, 2009 11:12 AM
I think he is just trying it on. thought process is: "hmm, I want to go away this summer for vacations, etc... wouldn't it be nice not to pay rent. Wonder if my landlord will be cool about letting me out early, can't hurt to ask."
He should have brought this up when he signed the lease. I don't think anyone expects to be let out of a lease for nothing. If it doesn't work for you, just say no. You still have the financial leverage, since you have their deposit. Just say you would if you could, but you don't have time to re-rent the place, it's too short notice, and it doesn't work for you. You're not being mean.
Posted by: joe_the_bummer at June 15, 2009 11:15 AM
I agree with JTB.
Feeling aggrieved isn't helpful. It's a business issue. He's a client and he's asking for something. Counter with a solution that helps him and also works for you. Try to get to a win-win solution. If that's not possible, just say no.
Posted by: vanburenproud at June 15, 2009 11:21 AM
Ask him to find a tenant for you. If you or him find a tenant in 30 days then just move on. If not, then tell him you have the right to keep the security deposit.
Posted by: crimsonson at June 15, 2009 11:22 AM
They can move out whenever they please but the lease is a legal contract and they must pay through Aug 31. As a landlord, your house/business must come first so you may need to juggle your own schedule to deal with the unforseen -just like you would have to for any business.
Posted by: sam at June 15, 2009 11:23 AM
Interesting that some people assume that because you are a landlord that "abuses" renters (hannible) and "make a profit" as a landlord (oldtimer)..... Actually we rent below market - I make sure that we do so that we can easily rent the space. Even in this so called renters market, we have a nice space. Frankly I see more and more renters (young people) moving to CHN all of the time - especially during the last 6 months. Its amazing to see such change in a short period of time.
Thanks for the advice everyone. We will stick to the terms of the contract and see if he can find someone for the duration of the lease.
Crown Heights Happy
Posted by: crownheightshappy at June 15, 2009 11:46 AM
Part of being a landlord is that you limit yourself as far as summer vacations to deal with stuff like this. One month does not seem like that big of a deal to get crazy. If it were 3 or more months then I would say fight it but one month? If I were you tell them you will let them out with a 2 week penalty and swallow the wrest.
Posted by: brickoven at June 15, 2009 11:50 AM
A two-week penalty sounds right, in return they let you have your vacation uninterrupted.
Posted by: sam at June 15, 2009 11:52 AM
I'm confused - we're only talking about a one-month period and you have a security deposit to cover the month. What's the issue? If the lease runs until the end of August and he doesn't pay you for August, you get the keep the deposit, plain and simple.
You can of course let him out early if it would suit your needs. Now you know one way or another you are going to have to find another tenant, and you know one way or another you are getting paid for every month of the lease (through the deposit or otherwise). Shouldn't your only concern be finding a replacement tenant? I would be asking myself whether it is easier to find a tenant for an August 1 lease or for a September 1 lease. If it's easier to get a July 1 tenant, then just let him out and go about your business.
Seems like a lot of fuss over a mostly non-issue.
Posted by: lechacal at June 15, 2009 12:00 PM
Is it really worth the headache over one month? You'll lose more that just fighting it unless you have nothing but time on your hands. See if they are willing to forgoe return of thier deposit and pay July. Assuming you have no damage, you are even. Call it day and start looking for new tenants. If your lucky, you'll get some before the original lease would have expried and consider yourself ahead of the game at that point. Keep in mind, if they stayed throughout the lease and then moved, you would probably had it vaacnat for at least a month. By having them pay July and forgoe the deposit, that bascially pays for August and during that time you can paint and show it. Don't ask them to find you a tenant as mentioned earlier. That's just looking for trouble. One final thing, holding out for higher rent vs. renting right away negates any increase if you find yourself with a vacant apartment past August. One month of not getting rent negates any potential increase. Take what the market gives you.
Posted by: ou812 at June 15, 2009 12:03 PM
I would threaten to sue, citing exact clauses from the lease about how it cannot be broken without penalty, etc. That worked for us when our tenants tried to break their lease a couple of months early - they very suddenly had a change of heart when they were informed that they would be responsible for court costs, at the very least. (They didn't realize that we weren't actually going to sue them - the threat was enough.)
Posted by: brooklynfamily at June 15, 2009 12:03 PM
I mean if it's easier to find an August 1 tenant then let him out and go about your business.
I am in a similar situation to this tenant. I have potentially found an amazing lower duplex in center slope to rent from someone I know reasonably well. My north slope lease ends August 31, but I may be interested in moving before then. If my current landlord sees a benefit to renting our the place one month earlier then I would think it is in his best interest to let me out. Otherwise I signed a contract and I'm responsible for the rent for the full period of the lease. I don't think there is a huge difference between August 1 renewals and September 1 renewals, but I would think that enough people get stuck in an August 1 cycle (starting after college or grad school) that there is still a spike in demand at that time.
Posted by: lechacal at June 15, 2009 12:07 PM
Maybe I shouldn't assume you have a security deposit. Do you? You always, always, always should have a security deposit.
Posted by: lechacal at June 15, 2009 12:09 PM
To cut through all the bs on this:
1. If you have a security deposit, this is a complete non-issue. Let him out if it suits your needs (like finding a replacement tenant with an August 1 lease). Otherwise just keep the deposit and get a replacement tenant with a September 1 lease. Either way you hold all the cards.
2. If you don't have a security deposit, just let him out and start finding a replacement tenant for an August 1 lease right away.
Posted by: lechacal at June 15, 2009 12:12 PM
I am no longer a landlord but I think many of you new land lords are going to learn some hard lessons about being a landlord in NY state. Do not pick fights with tenants in this state, you will get burned over time. Only an idiot would get litigous about one month
Posted by: brickoven at June 15, 2009 12:14 PM
I find it amazing that people on here say "keep the security deposit." Do this if you want a court case over 1 month of rent, because it's illegal, security deposits are deposits to cover damage and cannot legally be used in lieu of rent, even if the tenant owes months and months.
My landlord tried to do this to me years ago, and I sued him for it, won easily.
Believe it or not, law does apply to being a landlord.
Posted by: zachgee at June 15, 2009 12:26 PM
zachgee: Where exactly did you get that information? I don't think it is right. Plese provide a credible source.
Posted by: lechacal at June 15, 2009 12:30 PM
zachgee, your sense of entitlement makes me a little sick. "Believe it or not, law does apply to being a landlord"?? What do you propose - letting tenants just walk out on leases whenever they want with no consequences? Do you think a lease is just a friendly suggestion when it comes to the tenant but legally binding when it comes to the landlord? Are you actually proud of not paying rent and getting away with it? May you get bedbugs.
Posted by: lechacal at June 15, 2009 12:42 PM
Zachgee - In NYC landlords can use the security deposit in lieu of unpaid rent. Check it out - http://www.housingnyc.com/html/guide/basics.html#Security
Posted by: Turtlejam19 at June 15, 2009 12:42 PM
Yes we have 1 month security. And of course the tenant wants to have the security deposit back and would not agree to deposit in lieu of rent (I did not ask, but Im sure of it). Note I also do not want to use the security for this purpose. ...I also do not understand why I should adjust my summer vacation and work schedule because a tenant decides they want to break the lease...then how could I ever plan my own acivities and work schedule if it is always subject to the whims of tenants who sign a contract but cannot stick to it..... The point is that a lease should not be broken. The lease does not provide for that. Why should I make my tenants problems my problem ??? I am not afraid of litigation. However it is also easily avoided.
Posted by: crownheightshappy at June 15, 2009 1:17 PM
You should NOT be a landlord! Tenants are in charge once that lease is signed. Good luck
Posted by: brickoven at June 15, 2009 1:29 PM
As a landlord, your tenant's problems ARE your problems...that's fundamental to the landlord/tenant relationship. The more you personalize their behavior, as if they're doing it "to you", the less you're able to address ANY issues that arise in a business-like manner. Restrain yourself from being "sure" of what they want and don't want. Whether you let them out of the lease or not, your post indicates they are certainly moving. Make sure they pay rent for July, and do not return their security in advance. Arrange for a friend to be present on their move-out date, and arrange a walk-through with them whenever you return from vacation. Arrange to begin showing their apartment now. On cost basis alone, it would be nothing but foolishness to pursue legal action over one month's lost rent.
Posted by: vinca at June 15, 2009 1:41 PM
Vinca's right. You are thinking about a business relationship in a really personalizing way.
Posted by: vanburenproud at June 15, 2009 2:18 PM
the law in NY is the tenant is responsible for the lease payments through the end of the lease. The tenant can move out and give you possession-accepting the surrender doesn't end their responsibility- but unless you sign something waive you rights for the additional rent, they still have to pay until the end of the lease. You are NOT obligated to re-rent it and if you do you can charge them whatever it costs you to do so.(their obligation however ends on the day the lease ends not beyond that date) That is the law. the reality is that you don't want to spend your time chasing a month or even two months lease payments(and as other say you can offset your loses by keeping the security). You can screw up the tenants credit report and give him a bad reference if they ever use you as a reference. But its better that they go away as quietly as possible.
Posted by: smeyer418 at June 15, 2009 7:44 PM
A good solution all around is to simply have them find another tenant for you that can move in (or arrange with them to immediately start showing the place) so everyone is happy. You get a new tenant, they get to move, both of you get to enjoy your holiday without worrying about this. Life is too short.
The fact that this tenant approached you with this early (rather than move out like a thief in the night while you're on holiday) and has valid reasons why they can't move out once the lease is up shows he wants to come to a mutually beneficial solution.
Posted by: Kaonashi at June 15, 2009 9:28 PM
Agree with smeyer. However, the courts take a dim view of you making no attempt to find a tenant for the remainder of the term.
I disagree with others. You are the landlord of a two family house which the law and the courts differentiate from multiple dwelling which is primarily income producing.
A two family is primarily your residence; the rental is incidental. You expectation is reasonable that your planned vacation is not interfered with by the tenant's whims. You have to arrange for handling emergencies (no heat, broken pipes) in your absence but not whim.
A lease is a legal document, not a suggestion. Just as you cannot arbitrarily demand additional rent from a tenant, a tenant cannot arbitrarily choose to stop paying rent at their whim. It is not a prison, they can move at any time but they are legally liable for the rent.
Posted by: jfss at June 15, 2009 9:28 PM
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