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I presently lease to a tenant in Virginia who receives a Housing Voucher.  Per the lease, it automatically renews unless a 90 day notice is given before the end of the lease by the landlord or the tenant; therefore, the lease renewed in March, 2013 for another year.  I just received notice from the tenant that she is given her 60 day notice.  I am interpreting this as a default on the lease and that the full is due.  First, is that the correct interpretation?  Second, what legal recourse do I have, if any?  And at that point, can the security deposit be held (it does read in the lease that it covers fees due to landlord)?

Recheck the wording on the lease. I believe what the lease is saying is that you are required to give a 90 Day Notice to terminate a year or month-to-month agreement. Also, I believe that after the 1st yr lease automatically reverts to a month-to-month and not as year lease unless you have tenant sign another year lease. You can always call HUD for a clarification.-----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local and Tax Laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download. A great program at tax time and at a great price! Check it out.

Thank you.

Interesting wording. Now I know why I always used my own contract when dealing with Housing. I would still call Housing for a clarification….. Keep in mind that in the future you should be able to include an Addendum stating that at the end of the Lease term the Lease will continue as a month-to-month and that the tenant must give a 90 Days (or whatever time works for you) Notice to Vacate….. In this case it (yr lease) may be beneficial to you. The benefit is that tenant and Housing should be responsible for rent until you find another tenant. You should also be able to deduct from tenant’s sec.dpst the cost (advertising, credit check, etc) of finding a new tenant…..This is important. Do a walk thru 2 weeks before tenant moves. Call HUD and immediately send a copy of needed repairs to both tenant and Housing. In CA, if there are damages that can not be covered by the sec.dpst (mention this in your letter) Housing will not give payment to tenant’s new landlord, thus no contract. Your tenant still has to move but will be responsible to new landlord for all costs until you are paid in full. Do your final inspection after ALL furnishings are removed…. As for legal recourse, not much other then deducting losses from sec.dpst and going to Small Claims if sec.dpst is insufficient. Lease Agreements (in my humble opinion) are more beneficial to tenants because it prevents landlords from increasing the rent. As you have learned, tenants break leases and there isn’t anything you can do to keep them there….Keep me posted. .-----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local and Tax Laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download. A great program at a great price! Check it out.

Thank you Bob for your response.  The lease automatically designates a new lease term.  Here's the actual language related to this section.   Ending or Renewing the Lease Agreement: At the end of the Lease term, this Lease Agreement shall automatically continue for an additional Lease term until such time Landlord and/or Tenant provide a written notice of 90 days prior to the end of the Lease Agreement or Lease renewal period.