lease default : ezLandlordForms

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Lisa T

started a topic over 6 years ago

4 mo into a 1yr lease my tennant is leaving with a 28 day notice. I poured over the state specific lease they signed and see no provision for default. I want to know for future lease signing, what people do since there's only the deposit at stake and that is to cover cleaning/damages, not remainder of the lease.

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J D

said over 6 years ago

I am pretty sure the only time the tenant can be released from the responsibility of the lease agreement is if there is domestic violence. The tenant is bound to the lease until the end of the term. They are responsible for the lease until you find a new tenant or until the term is up, whichever comes first. You will want to be searching for your new tenant and not just riding out the term.

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Lisa T

said over 6 years ago

Yes I am actively searching. The question is what can landlords do? We are here in Hawaii where most people move off island. Also, I only have the deposit and that won't last long after paying a cleaner.

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Elizabeth M

said over 6 years ago

You'll want to look up your local laws. Here, I give the tenant two options. One, they can pay me a set amount of money to break the lease. This would be about what I would estimate it would cost to find new tenants and any amount of time without rent. The other option would be to pay the actual amount of money you are out in the end. The first option you have no rights to ask for more money if it takes you a long time to fill the vacancy. The second option covers you better because they are responsible for the rent and utilities until you have someone else paying them. They can't just stop paying because they want to move. If they leave you owing money, you can take them to court. Also, I always charge a full months rent for deposit. That way you have more to work with in situations like this. Not sure what you charge.

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Lisa T

said over 6 years ago

Yup, I have a full months rent in deposit. So that's about what I expected... outside of court three is no recourse. I doubt they would cough up any money to give me to cover lost days though I did day they are responsible till new renters can take over.

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Elizabeth M

said over 6 years ago

Make sure to get everything in writing. I would let them know in writing they have to pay rent and utilities until a new tenant has taken possession. That they are also responsible for advertising etc that you are out. Keep track of everything and keep receipts to give them a copy in the end. They can't use the security deposit for any of that. They should pay as agreed, with the security deposit still held for damages. As long as they pay rent/utilities/everything until new tenants are in, they get their deposit back.

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Lisa T

said over 6 years ago

Yes that brings me back to my first question. If I am paying for a lease AND default is something worthy to enforce...WHY is it not in the lease stating that if a tenant should default they will be financially responsible for said things?

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Elizabeth M

said over 6 years ago

I'm not sure what you mean. The lease states clearly that they are responsible for rent for whatever time frame you both agreed to in writing on the lease. If they are breaking the lease, you need to write up a new document with the terms and agreement there. If you want to have those policies in place, you could put them in special terms and conditions. I don't state any penalty for breaking a lease. For one, I don't want that to be viewed as an option. 2nd, I would handle it differently depending on what time of year the lease was broken. It seems there are just different ways to handle it. Maybe someone else has more insight into this...

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Elizabeth M

said over 6 years ago

I'm not sure what you mean. The lease states clearly that they are responsible for rent for whatever time frame you both agreed to in writing on the lease. If they are breaking the lease, you need to write up a new document with the terms and agreement there. If you want to have those policies in place, you could put them in special terms and conditions. I don't state any penalty for breaking a lease. For one, I don't want that to be viewed as an option. 2nd, I would handle it differently depending on what time of year the lease was broken. It seems there are just different ways to handle it. Maybe someone else has more insight into this...

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Stan M

said over 6 years ago

As I have mentioned before, leases are for tenants. It freezes their rent for the term of the lease. If a tenant decides to move there is nothing you can do. Your only choice is try to minimize your potential loses by being creative within the law. As a landlord there is no real value, I feel. Yes, you can take them to court and win, but the question is, ”How do I collect?” Not easy! …….If you have many tenants that stay less than a year, consider doing a month-to-month, but require a 60 Day Notice to Vacate. This should give you time to find new tenants…….Also, if you can (see state/local laws) double their security deposit. If they complain, you can offer them interest. ……..On another note, I believe you may have a difficult time to charge them for utilities if they have moved…….You can always create a new lease or create an Addendum stating the terms for breaking the lease. Make sure you name the Addendum in the lease under Additional Terms……Have all parties date and sign, including you…….suggestions: ½ month’s rent as penalty, all cost of advertising to find new tenant and rent until you lease the property again.

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Lisa T

said over 6 years ago

Well put Stan and just what I thought. Leases are for tenants, court is a poor fallback and try to minimize losses. I like the shorter lease option. thank you

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Stan M

said over 6 years ago

Thank you