Tenant Requesting to Terminate Lease Early (Houston: foreclosure, renter, credit)

[Tominftl]

Tenants are going to do what's in their own interests. They aren't concerned with breaking leases etc. You may have to take them to small claims court. Just because they give you the judgement doesn't mean you'll get your money. Tenants are slick. Just hope they don't destroy your place....

[Caardinal46]

Originally Posted by seadoons

The lease form is the standard Texas Associate of Realtors Residential Lease form. The form basically says they can't get out except for a few specific reasons that don't apply here. It also says that the tenant can start looking for a suitable replacement (suitable in my eyes) and I can do the same if I choose to (but don't have to). It also looks like we checked off an option that if I find a suitable tenant then I can charge my current tenant 1 months rent as a fee.

I'm just looking for thoughts / experiences with this. This is my first time going through a tenant turnover.

As far as what to pay my agent - how many potential renters are out there looking at HAR.com on their own without an agent?

We rented our present abode without an agent. Also, if I didn't know any better, I would think you are my landlord! We just found a house we would like to buy, but our lease is a minor inconvenience.

[seadoons]

Thanks for the feedback. Their reason for wanting to depart early has nothing to do with a financial hardship - a more convenient option has presented itself and they want to move on. Again, this is my first time dealing with this so I want to understand all of the rules to play by.

[HookTheBrotherUp]

Originally Posted by seadoons

Thanks for the feedback. Their reason for wanting to depart early has nothing to do with a financial hardship - a more convenient option has presented itself and they want to move on. Again, this is my first time dealing with this so I want to understand all of the rules to play by.

In that case, I'd enforce the contract!

[marksmu]

Originally Posted by HookTheBrotherUp

As a Landlord, you also need compassion. No, not compassion in the sense of always letting people get away with BS, non payment, partial payment, etc. But what are the tenants reasons for leaving? I ask because a lot of people are affected by the current economic conditions of the Oil and Gas and related industries.

We had a contract with Halliburton, for example, about 12 million per year, just for software. When the bottom fell out last year, we renegotiated our contracts, we pay less, and they gave us some things for free. It is the norm in the O&G industry, we all know that when things improve, so will the contracts. So I'm just saying as a Landlord, you should have some degree of flexibility with hardship situations.

I used to be a Landlord BTW, it sucked, I would never do it again, I'd hire a Management agency next time.

Not trying to sound inconsiderate here, but being a landlord is a business...the rent is your business income...ALL tenants who want to break their lease have a "Good" reason to do so...but their problems should not equate to your problem...unlike a software company, these tenants will not ever bring you new business. There is no good will developed by letting them take your money.

Would you have the same compassion for a down her luck single mom who rear ended your car and caused $2200 damage to it? Probably not.

I always try to work with my tenants, but once they have decided its best to leave me holding the bag, I am always insistent on enforcing the contract...though its only happened once, and they only skipped out on 1 month.

[seadoons]

Originally Posted by marksmu

Not trying to sound inconsiderate here, but being a landlord is a business...the rent is your business income...ALL tenants who want to break their lease have a "Good" reason to do so...but their problems should not equate to your problem...unlike a software company, these tenants will not ever bring you new business. There is no good will developed by letting them take your money.

Would you have the same compassion for a down her luck single mom who rear ended your car and caused $2200 damage to it? Probably not.

I always try to work with my tenants, but once they have decided its best to leave me holding the bag, I am always insistent on enforcing the contract...though its only happened once, and they only skipped out on 1 month.

I tend to lean more towards your position on this. It is a business transaction - and I have a mortgage to pay along with other expenses on that house. My position back to the tenant is that the penalty for doing this is one month's rent (which is spelled out in the agreement). Additionally, he is on the hook for any financial loss I have as a result. Meaning if he moves out June 30 and I have someone else in there paying the same monthly rate on July 1, he owes me nothing. But if the house sits vacant for two months (July/August) he is on the hook for both months. If it rents out on July 1 but for $100 less per month, he is on the hook for the $100/month loss i'm going to take for the 4 months he is cutting it short (so $400). Best case for him is he gets charged a one-month rent penalty and I have someone in there on July 1 paying the same amount he is currently paying.

[hendersj31]

^ I agree. As a long time landlord I can tell you that tenants often fail to realize that there is real money at stake for landlords. Like keeping up with mortgages, taxes, utilities and maintenance is somehow free for us.

[ilikeme]

If the lease says to break the lease it is one months rent, then thats all you can charge them. You can't tack on the loss for the additional remaining months. Doing so is just asking for legal troubles.

[seadoons]

The contract states that the lease term is what it is and that no early termination is allowed. From there, it says this: "If Tenant requests an early termination of this lease under this Paragraph 28B, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant under this paragraph." So I don't have to do anything at all - just tell him bring me a suitable replacement otherwise he is on the hook for all of it. Or, I can spell out alternative terms as described above. There is a high liklihood that the house will re-lease quickly.

[seadoons]

...it doesn't say they can break the lease by paying one months rent. Who would put such an easy-out in the contract???