What should I do if my tenant breaks the lease on my rental property?

As a renter, your livelihood depends on the prompt and full payment of rent by your renters. But what do you do if this is suddenly jeopardized by the news that your renter intends to break his lease? Obviously cases vary, but here are some suggestions to protect your income and property when faced with a defiant tenant.

Refer back to the lease agreement -
The lease agreement that you have created and should have had your tenants sign is going to be your best friend. That agreement is binding and legally the tenant can do little to refute and agreement that he signed. In your lease agreement you need to clearly outline the expectations for payment, such as what day of the month it is due, hoe much is due, the form of payment accepted, and penalties for late payment. It is wise to obtain legal aid when drafting the lease agreement for your property. Common stipulations include that if a renter breaks their lease they are obligated to pay the rent due for the remainder of the time on the lease. Other renters set high fines, usually a previously agreed on figure, that the tenant will pay in the case of early lease termination.

Other renters care less about who is in their property and more that the rental property is full. So, in some lease agreements an early lease termination is allowed but only is the tenants can find suitable new tenants to replace them. Also, subletting could be an option to consider in the lease agreement. If constant occupancy is really your goal, you might consider adding an automatic renewal clause to your lease agreement. This requires your tenant to give notice of intention to leave at the end of the lease. If no notice is given, it is assumed that the tenant's intent is to renew the lease for a specified period of time.

Security deposits can also come to your rescue in a time of tenant lease termination. In cases where tenants not only break a lease, but flee from the property to avoid fulfilling their lease agreements, the security deposits can lessen the blow of loosing the additional income. Security deposits come in many increments and of course you will need to decide what is best for your property. Some renters ask for several months rent in advance while others simply ask for a cleaning deposit.

Keep your end of the bargain -
It is important that you have not been the reason why the tenant is seeking early termination. There are some things that are out of your hands and do not give the tenant an acceptable excuse to leave such as noisy or rude neighbors, a move for a job promotion, etc. What is under the umbrella of your responsibility is the condition and livability of the property.

Keep your property well maintained.
Yes, you should include in the lease agreement what you expect of a renter and the consequences of breaking a lease. But you also need to include what you agree to do. For example you promise to maintain the property. If a property has fallen into disrepair and is a danger to the tenants, the tenant should not be obligated to finish out the term of the lease. Also, there are cases where utilities are disconnected to entire building when only a portion of tenants are not paying. The portion that do pay for such utilities are not obligated to honor their lease if such previously agreed upon terms are not being upheld by the landlord.

Ultimately you may need to employ legal aid -
When you have a binding legal contract in the form of a lease agreement and it is broken by your tenant, you may be put in the position of having to go to court. Eviction is a legal process that is far more involved that just locking the tenant out of their apartment. Legal assistance in writing your lease agreement and fighting for the fair payment of dues under that agreement is worth the investment. Even still there are at least three reasons why, despite signing a lease, your tenants can terminate that agreement early. They are:

If you are accepted into government issued low cost housing as part of taking military leave
If you can no longer live in your apartment due to a physical handicap.
If you are admitted permanently into an elderly long term care center.

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Categories: Legalities,

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