Breaking Lease before the tenant moved in : ezLandlordForms

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Jeffrey M

started a topic over 6 years ago

I have a signed lease, deposit and first months rent from a tenant.. They have decided not to relocate to my city and have requested to break the lease before they have even moved in. They chose to tell me this information while I was on vacation. I spent part of my vacation re-listing the property on several websites and reaching out to past applicants that I had previously turned down. I found new tenants and they have signed the lease and paid their deposit and first months rent. I am not out any rental income but I am super annoyed with the first guy who made me re-do everything a second time. Do I have legal rights to keep his deposit and first months rent in exchange for letting him out of the lease?

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Scott H

said over 6 years ago

since you have not lost any rent you don't really have the right to keep the deposit or rent. You do have a right to charge for any costs to relist the property, advertising, travel, and I'd throw in a reasonable cost for my time. I changed the "deposit" from deposit to a nonrefundable holding fee for tenants that haven't moved in. when they take possession the holding fee is credited to be used as their deposit. If they flake I can keep it because it's a holding fee and not a "deposit"

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Darlene D

said over 6 years ago

I had the same thing happen twice with the same person meaning she changed her mind twice and on the day I was to meet her which I took off work to do and turn over keys, she flaked again without a word. She later hounded me for the money back (deposit) and I told her no because she had signed a lease and I now lost rent and it would take time to find another tenant. Now if you found someone right away to replace that tenant then Scott is right.

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Nolina B

said over 6 years ago

Are non refundable fees legal in your state Scott? I don't believe they are in Idaho. I was thinking of changing my deposit to a holding fee like you suggested but while reviewing the state specific lease on this website it said that non refundable upfront fees were not permitted? I have some tenants moving to Idaho from CA and was thinking maybe I should have a holding fee like Scott suggested but I don't believe I can.

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Null

said about 6 years ago

I’m in New Hampshire and face the same issue, the tenant signed the lease, gave me the 1st month rent, security deposit and oil reimbursement. What can be considered the reasonable break lease fee? 2 weeks of the rent is already burned, and I am still looking for another tenant. It will likely be mid September or October 1 before it’s rented again. Can there be a termination fee to get out of the lease? What is reasonable there? Do I get her to sign that form on this site to terminate the lease?