renters breaking lease : ezLandlordForms

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Bernard R

started a topic almost 12 years ago

My renters want out of their 2 yr lease. They have only been there less then 6 mo. I know I can keep the security deposit, but what can I charge for them breaking the lease? 2 extra mo rent? a percentage? this is for Wi.

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Bob R

said almost 12 years ago

I doubt you can keep all the sec.dpst. You can use it to pay for rent until you find another tenant and repairs, if any. And, you can't just leave the property vacant until you decide to start trying to find a replacement. The good news may be you could charge them for advertising and other expenses for finding a tenant. You may also be able to charge them a penalty for breaking the lease. Check your Agreement and State/Local laws concerning tenants breaking their lease. If the sec.dpst exceeds the expenses, you probably will have to return the balance. Be careful what you call your charges. 2 extra mo rent probably would be considered excessive. 1/2 mo rent penalty would be better.

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Bernard R

said almost 12 years ago

when I was on the wi sight it said that breaking the lease is considered damage and I can keep the security depoist. This is a very busy time of year for me and I honestly don't have time to do the painting and cleaning that comes when a renter moves out. I have 5 kids,a disabled wife, a full time job, and have to help my father on the farm this time of year. That is why I have a lease that is done in November. A down time for farmers. I will be lucky if I find time to get new renters in there in the next 3 mo. thanks for the info.

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Bob R

said almost 12 years ago

A brief research discovered the following: “All tenants MAY break their leases, even if the landlord says that subletting is the only option.” And, “….the landlord has a duty to mitigate (lessen) damages by making efforts to re-rent the apartment as soon as possible.” Nothing about landlord keeping all the sec.dpst. as a remedy. You may want to do more research or contact a lawyer. The Law doesn’t care about Tenant or Landlord situations. It only addresses the law and makes sure that it is followed by all parties. I hate to see you suffer due to lack of proper information. Keep in mind that the courts appear to lean on the side of the tenant. Landlording is not always an easy job. Sometime it’s much easier to have a 2nd part time job with a know schedule. Best of Luck

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Bernard R

said almost 12 years ago

ok thanks. I guess it will be sitting empty at a loss till I get time to deal with it again.

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Bob R

said almost 12 years ago

I would still advertise it for rent if you want to treat it as a rental. Gotta keep the IRS happy. Have you considered have someone like a Real Estate Agency that has a Rental Dept. to do a 1X rental find. Here in CA Bay Area they charge 1/2 months rent for everything...advertising, showing property, doing credit checks, drawing up the contract and doing the initial and final inspections. You can ask to see all the info on the future tenant and have the final say. I've been using this system for years. I got tired of no-shows, etc. Once I have approved the tenant, I handle the rest.

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Kathy J

said almost 12 years ago

Be very careful taking California advice about Wisconsin rentals. The landlord tenant laws differ vastly between those two states. Here is a link to a site with Wisconsin landlord tenant legal information. http://search.yahoo.com/r/_ylt=A0oGdNlGU7hPB2AAywdjmolQ;_ylu=X3oDMTByZWgwN285BHNlYwNzcgRwb3MDMQRjb2xvA3NrMQR2dGlkAw--/SIG=11icqni6i/EXP=1337508806/**http%3a//wis-law.com/tenant.html One difference between the two states is that California is a pro-ration state which allows the tenant to give notice partway through a month and only owe till the 30 days after that. Wisconsin is a rental period month which means that if the rental period is monthly, notice is given for the next entire month. If a tenant gives notice on May 5, then the tenant would owe May and June rent.

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Bob R

said almost 12 years ago

@ Kathy: Which CA law advice are you referring to? No advice was given. I believe I stated "You may want to do more research or contact a lawyer."

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Bob R

said almost 12 years ago

@ Kathy: Which CA law advice are you referring to? No advice was given. I believe I stated "You may want to do more research or contact a lawyer."