THIS PROBABLY NEVER HAPPENED TO YOU, BUT…. No. 264
The tenant from #3 called, and it was obvious from her voice that she was distressed. She’d only been with us for 3 months, but we’d had a feeling that she would be one of our prized tenants. She came in with great credit and a long job-history. She was the sort who had given a small “courtesy” gift to the rental agent who had helped her find her apartment. She was the sort who wrote a brief note to me, thanking me for the service our office had provided to her.
She now had a personal problem. The nationally recognized company that had provided her with a fine income and a comfortable life-style was now asking that she move to Houston, as that is where her employer needed her.
For the sake of her financial future, she had to accept the re-assignment, and this would require her to break her contract with us.
These things happen, and in this business we should be prepared for them. We should be prepared to offer a solution that generally works to solve the tenant’s issue while putting us in a position which is no worse than where we were before this call came in.
Basically, our solution requires the tenant to choose between two options.
“Alternative 1” permits the tenant to find a fully qualified replacement tenant who will assume the rights and responsibilities of the balance of the term of the lease. As some work is required of us, we charge $335 “up front” for this accommodation. We ensure that the out-going tenant has returned the unit to move-in condition, and that all rents are paid. We run new credit checks, assess the proposed replacement, and process the paper-work required to terminate the existing lease and create a new lease with the new tenant. The new tenant pays a full new security deposit to us, and we refund to the prior tenant their deposit minus any actual costs of the transition.
“Alternative 2” is used where the tenant simply wants to walk away. Under this option, the tenant agrees to pay all rents due for the next thirty days. They additionally agree to pay all costs associated with the turn-over (cleaning, repairs, advertising, credit checks, etc.) They agree to pay us $425 up-front, to cover our office time and expenses we will incur in processing this vacancy/re-rental. They agree to pay all costs of putting the unit back into move-in condition. And finally, they agree to pay all rents due until the replacement tenant is in, and to extend their right to receive an accounting until 21 days after the replacement tenant’s lease becomes effective.
Whichever option the tenant chooses, they are required to sign our “Breach of Lease” agreement form, indicating their awareness of, and their agreement with the consequences of their choice.
When assessing the value of this approach, consider what has happened to us, on occasion. The tenant waits until the end of the month, moves out, AND THEN calls to report the vacancy. This leaves us with only their security deposit to cure the situation, and is clearly a worse situation.
If you are interested in the details of our “Breach of Lease” form, or would like to receive a copy of our “Breach of Lease” form, you can reach me at the e-mail address below. This approach has worked well for us. It’s just business.
Dear Readers: This article is the 264th in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an ever-changing rental market. I always appreciate your questions, comments, suggestions, and solutions. Contact C. Finley Beven, CPM, CCAM, JD. Fin.Beven@BevenandBrock.com .
