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November 3, 2009
Tenants Breaking Lease
My tenants informed me that they want to break one-year lease after only 3 months citing personal reasons and bad planning. Which would leave me with a vacant apartment in December. I hold one month security deposit but it seems to me that wouldn't be enough to cover my loses and a headache.
Comments
NYC is a tourist destination over the holidays and Brooklyn has grandparents and family visiting then too. Try advertising a one-month holiday rental on Craigs List. Of course you'd have to furnish it with some basics like bed, table/chairs and sofa.
Posted by: traditionalmod at November 3, 2009 11:58 AM
If you didn't provide an out-clause in the lease (I give my tenants a 60 day notification option of they want to leave) then they are legally bound to the full term.
Tell them they either have to stay the full term, since they are bound by the lease, or at least until you find a replacement.
Their bad planning is not your fault, they are responsible for the lease.
Posted by: christopher at November 3, 2009 12:38 PM
Do their personal reasons/bad planning involve a money shortage on their part? If so, let them go. You'd do better to have an empty apt. to try and rent than to have an occupied apt. with renters who can't/aren't paying you.
Posted by: InsertSnappyNameHere at November 3, 2009 12:42 PM
I agree with Snappy
or perhaps - if they are a couple - they might be breaking up and cant afford to live there
sometimes it's just best to cut your losses and start fresh with new tenants
keep the deposit
Posted by: gemini10 at November 3, 2009 12:52 PM
VRBO.com does short-term leases if you decide to go that way. I tend to agree w/ Snappy & gem.
Posted by: Arkady at November 3, 2009 12:56 PM
I'm looking for a rental for Dec. How big is the apartment?
Posted by: snowbunny at November 3, 2009 1:01 PM
Just like Christopher said ...What does your lease say? If they signed a 1 year lease than they are bound to that. I would let them know that legally they are responsible to pay for the year but if you can rent it you will let them out. I recently had a tenant that needed to get out early so I told them that I would break the lease as long as I could get someone to rent in their place and they needed to show the unit...U should post the place on craigslist making it avail 12/1 but mention that it can be avail sooner if needed and let the tenant show it..this way everyone wins b/c if they can't afford it ..u don't want to deal with the headache anyway.. and u have a tenant who shows the property off prob better than u would b/c they want to leave. Good luck!
Posted by: scarter at November 3, 2009 1:04 PM
Make them move out early in the month, and keep their security deposit.
Suing them is pointless.
Posted by: thwackamole1 at November 3, 2009 1:31 PM
I've gone through this from time to time (although, not 3 months in).
Having just gone through it with a tenant who wanted "out" after 9 months a couple of months ago, I advised the tenant that she was responsible for finding an appropriate tenant OR she would be responsible for fulfilling her year's lease.
I've done this before, and it works out well. Outgoing tenant does the advertising on Craig's List and showing and after it's been winnowed down to a handful of appropriate applicants who are interested, I step in and do the rest.
Although I haven't done it in years, you may also want to list it with some local realtors....nothing to lose -- not even time, if you make it the current tenant's responsibility to show the apartment.
Posted by: JudithH at November 3, 2009 1:32 PM
I broke a lease a couple of years back. First thing I did was contact the management company and ask what the deal was. They said for that particular apartment, I probably wouldn't have trouble finding a tenant for them. I contacted the brokerage that I used to find it and asked them to find the replacement tenant. It cost me half a month's rent because I moved out mid month so the landlord could make sure it was in tip top condition for the new tenants. The management company even advised how I could buff out the scratches in the hardwood floors. I made sure that the apartment was spotless all the time so the brokers could show prospective tenants through. I moved out April 15, the new tenants moved in May 1, the landlord didn't lose a penny. I also tipped the super generously on the way out to make sure I wouldn't have any issues.
If I were you I'd tell your tenants that they're responsible for finding an acceptable new tenant, and that they could contact local brokers and make the apartment available to the broker to show. If the new tenants end up paying less rent the original tenants are responsible for the difference for the remaining part of their lease. When you sign a contract, you have to honor it.
Posted by: bohuma at November 3, 2009 1:46 PM
Legally they are responsible for the release, unless as other people mentioned there is an out clause. There are such clauses on some, but it's a bit unusual unless someone negotiated for it up front. But in NYC the lease is more about protecting the tenants than it is about protecting the LL. You can try to enforce it...but if the tenants balk you have little recourse. You can go for a long drawn out court fight but you will probably lose money on the deal. And in the meanwhile you'll have unhappy tenants in possession of your apartment.
You could of course do what JuditH suggests. I've known tenants that can be bullied in this way. The upside is they do the legwork for you. The downside is that they might not do it, or they might give you a stream of awful candidates. I guess she's been successful at it, but I've seen situations where it backfires. Badly.
I think the smart landlord would start looking for new tenants now. And do it themselves! The current tenants are almost certainly not going to protest you showing the place if they want to get out so badly.
What you want to avoid is the worst-case scenario of non-paying tenants still in possession of the apartment, or almost as bad, pissed-off tenants who are in possession but not liking you very much. They can do enormous damage while they're there, and in the meanwhile it will take you months to get them out.
Posted by: northridger at November 3, 2009 1:57 PM
I'd let the tenants help but do the lion's share myself. And, of course, vet any prospects the tenants came up with.
Posted by: Arkady at November 3, 2009 2:01 PM
Sure, a contract is a contract but pressing people to stay when they don't want to is fruitless. You'll at least have a rentable apartment if they leave. They could stay and not pay....and then you lose rent and have to pay a lawyer. Then at the end of it, they can leave your place in shambles.
You think you have a headache now.....
You as a landlord have less power than you think. The quicker you realize this the better.
Posted by: moreteasir at November 3, 2009 2:28 PM
There is no clouse in the lease, they are liable for the reminder of the lease. These people have money, the also have couple of properties in Florida.
Posted by: gale at November 3, 2009 2:31 PM
It also matters if you live on-site or not. If you don't, then pushing too hard just might result in a midnight move out and you having an empty apartment on no notice at all.
I saw a lot of these when I lived in Manhattan, the friend's van or U-Haul pulling up in the middle of the night and people furtively looking around as they carried out their stuff.
If you do live on the premises it's much less likely (although some people would still have the balls to do it right under your nose!).
Posted by: northridger at November 3, 2009 2:34 PM
no, I believe what folks are saying is that since there is no opt-out clause, they are responsible for the entire term of the lease. You're thinking of it in reverse.
If they have properties in Florida, they aint got no money!!
Posted by: moreteasir at November 3, 2009 2:37 PM
Make sure they move out at the end of their paid up time, keep their deposit and use it to float the month it will take to fix up and re-rent the apartment. You can even be nice and offer to give them back a pro-rata portion of the deposit if someone else moves in sooner than that. That is more than fair and probably sets the stage for an amicable separateion.
Fighting people to pay up on a lease they want out of seems like it will cost more than you will recoup.
Posted by: Brokedeveloper at November 3, 2009 2:50 PM
Gale, I had to break my lease a month shy of fulfillment this week because of the downstairs tenants who moved in after me, as well as street noise that was way worse than I had expected. I let my landlady know and posted on Craigslist to find someone to take over my lease and had no trouble finding interest. I'm now completely moved into my new space and my landlady has a new tenant that she likes :)
My point being, (a) your tenants should at least help you find a replacement and (b) Craigslist is your friend.
Posted by: ettay at November 3, 2009 2:56 PM
I can say from experience that the litigious route is the worst. The best you can hope from an experience like this is to get them out of there as quickly as possible with as much cooperation as possible. For heavens sake, do NOT rely on them or expect them to find you a tenant. Their fabulous judgement is what caused this mess. You should explain that this is a breaking of the lease, that it is a big problem for you, that this is a bad time of year, etc. and see if you can get them to be cooperative in keeping their apartment both very tidy and neat and available for showing. Immediately. And then while we can't control everything, to the extent you can, analyze how you can try to avoid a similiar situation in the future, i.e. do a lot of screening up front. I am sympathetic because s**t happens but see what you can learn from this. And stay out of court. I had to go there as a last resort with an inherited tenant from hell and let me tell you about a way to age yourself.
Posted by: donatella at November 3, 2009 3:07 PM
I would let them be squatters
Posted by: Xander Crews at November 3, 2009 3:36 PM
Hi, Even if they have money.. you really don't want a tenant who doesn't want to be there. it's just a headache. Let them do all the leg work and you just screen in the end like I and a few others have said. Better to have someone that wants to be there in there IMO.
Posted by: scarter at November 3, 2009 3:46 PM
Where is the apt? I know a couple that is looking to rent in Brooklyn for Dec. 1. They are coming from England so I'm helping with the hunt. Maybe we could talk offline.
Posted by: blowfish at November 3, 2009 3:47 PM
The apt. is in Central Slope, nice block. It's two bedroom plus office, very elegant, thoroughly renovated with some original details. Current tenants are paying 2850.00.
Posted by: gale at November 3, 2009 3:54 PM
OK, sounds nice but nevermind-- I think they're looking for something about $2K, even if its tiny. Just the hubby working. Thanks anyway.
Posted by: blowfish at November 3, 2009 3:58 PM
I have alot of tenants breaking leases over the years. i never ever charged any one of them. its just easier to let them go and take anything farther to court etc.. waste of your time etc..
its always easy to find replacements.
Posted by: armchairwarrior at November 3, 2009 4:03 PM
Snowbunny and blowfish,
We have a 1BR in prime Prospect Heights available from Dec 1. It's newly renovated with w/d in unit, beautiful original mantelpiece and wainscotting, and brand new everything--wood floors, eat-in-kitchen with ss appliances (incl. dishwasher) and bathroom with radiant heated floor. It's on the ground floor of a beautiful brownstone (no garden access). Rent is $1880. Email me at 3bestboys@gmail.com for more info. Thanks.
Posted by: ursulax at November 3, 2009 9:14 PM
I'm actually interested in renting a 2-bedroom apartment, preferably in Park Slope or Windsor Terrace, beginning either 1/1/10 or 2/1/10. Ground floor preferable but not necessary. Any landlords out there, if you have anything please contact me at presto1972@live.com.
Posted by: presto1972 at November 3, 2009 10:31 PM
I would advertise no fee by owner of course but also give it to a few brokers and use the security deposit to pay the fee for a lease starting 12/15-1/1. RENT it in december; do not, under any circumstances, let it go unrented into January because Jan is the start of "nothing doing" season and that sticks around until April.
Posted by: lalaland at November 4, 2009 11:05 AM
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