Realized we made a mistake and want to break lease -- Advice? (real estate, subletting)
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My wife and I signed a 2 year lease for a 2 bedroom apt in the bronx that began on September 1st, however, we have not moved in there yet, out plan was to move everything in there by October 1st. However, we realized we were making a mistake with the move and that we'd rather stay where we currently are and save for a condo/house as opposed to jumping from rent-to-rent-to-rent. Yes I know, we should have thought of this earlier, there was some hesitation in beginning but we were trying out best to brush it off.
I put down the 1st month rent and security. Now I know we won't get that back, I accept, no problem, lesson learned. So I went to the rental office today and spoke to one of the leasing agents (not the actual super/owner). I told her we encountered some financial differences between us and we won't be able to move in.
The leasing agent said "Well, the managers here don't break leases, you would have to pay the rent until the lease is up or until a new tenant moves in". I asked her "How long will it take you think for a new tenant?", she said "Maybe a little more than a month because we have about 2 other 2 bedroom apts". But this particular apartment has some things which the other ones they're advertising doesn't have in it.
Either way, what she's says about the managers never break leases there is very contradictory to what it says in the lease we signed. Here's what it says:
Article 16, #b. ABANDONMENT: If you move out of the apartment before the end of this lease without consent of owner, this lease will not be ended (except as provided by law following Owner's unreasonable refusal to consent to an assignment or subletting requested by you). You will remain responsible for each monthly payment of rent as it becomes due until the end of this lease. In case of abandonment, your responsibility for rent will end only if Owner chooses to end this lease for default as provided in Article 17.
Article 17. DEFAULT
1. You default under the lease if you act in any of the following ways:
a) You fail to carry out any agreement or provision of this lease;
b) You or another occupant of the apartment behaves in an objectionable manner.
c) You do not take possession or move into the apartment 15 days after the beginning of this lease.
d) You and other legal occupants of the apartment move out permanently before this lease ends.
If you do default in any one of these ways, other than a default in the agreement to pay rent, Owner may serve you with a written notice to stop or correct the specified default within 10 days. You must then either stop or correct the default within 10 days, or, if you need more than 10 days, you must begin to correct the default within 10 days, and continue to do all that is necessary to correct the default as soon as possible.
2. If you do not stop or begin to correct a default within 10 days, owner may give you a second written notice that this lease will end 7 days after the date the second written notice is sent to you. At the end of the 7 day period, this lease will end, you then must move out of the apartment. Even though this lease ends, you will remain liable to owner for unpaid rent up to the end of this lease, the value of your occupancy, if any, after the lease ends.
3. If you do not pay your rent when this lease requires after a personal demand for rent has been made, or within three days after a statutory written demand for rent has been made, or if the lease ends, owner may do the following:
a) enter the apartment and retake possession of it if you have moved out
OR
b) go to court and ask that you and all other occupants in the apartment be compelled to move out.
Once this lease has been ended, whether because of default or otherwise. You give up any right you might otherwise have to reinstate or renew the lease.
The agent said they don't break leases at all, but that's not what the lease says in what I quote above. So I don't understand? I've asked a few people already and they said they can't legally make us keep paying rent until they find a new person to live there. Even my current landlord (at the place we were moving from) stated this, I also asked a lawyer friend of mine he said his specialty isn't real estate but he doesn't believe they can do that but it also depends on what city the apt is in.
I am not a tenant expert, nor am I a lawyer but I took the management office's comment that they don't break leases to mean that they will not give you a figure to pay and then let you off the hook.
It sounds like item c applies to you. You don't plan on moving into the apartment within 10 days of the lease taking effect. The owner may then send you notice that you have 10 days to remedy that situation by moving in. If you still don't move in, you are breaking your lease without the owner's permission and liable for the rent "until the end of the lease." I don't think this will hold up though. I've watched enough Judge Judy to see that the owner has to make a concerted effort to mitigate his losses by trying to find a new tenant. If it takes him three months to do so, you are liable for those three months of rent. If he sues you for it, he will probably win. The broken lease may be a big ding on your credit report as well but I'm not sure about that.
Technically, the lease has to be broken in order for the owner to be able to rent to someone else. He can't have a signed contract that the apartment is yours for the next two years and have someone else come along and sign a contract for the same apartment.
I see what you're saying. Well, 3 months of rent is better than paying 1-2 years of it. Let me ask you though, let's say they sue me for those 3 months of rent that they missed out on, will I get to pay it in a monthly installment or are they gonna want it all right away? Also, about the credit thing, I've asked people about that and they say it doesn't mess up your credit, but if they sue you and you don't pay it then it becomes debt and THEN it goes on your credit report.
I see what you're saying. Well, 3 months of rent is better than paying 1-2 years of it. Let me ask you though, let's say they sue me for those 3 months of rent that they missed out on, will I get to pay it in a monthly installment or are they gonna want it all right away? Also, about the credit thing, I've asked people about that and they say it doesn't mess up your credit, but if they sue you and you don't pay it then it becomes debt and THEN it goes on your credit report.
I am really not sure how that works. Do you have any way to contact the owner directly and say that due to unforeseen circumstances you will be unable to occupy the apartment and see if they will work with you somehow?
I am hoping some of the regulars here will respond with better info.
You will remain responsible for each monthly payment of rent as it becomes due until the end of this lease. In case of abandonment, your responsibility for rent will end only if Owner chooses to end this lease for default as provided in Article 17...................
"If the owner CHOOSES" is the most important line.
Don't try to do what you are trying to do without a lawyer.You will likely end up with a housing court judgement that will plague you for the rest of your life,especially if you ever try to buy a house or apartment.
Don't listen to anyone's advice on here...... get a good lawyer to end the contract and make sure you don't wind up with a judgement against you.Don't believe anyone who says "the landlord can't do this" or "the landlord can't do that".
Right now, no, but I will call the rental office on monday morning to see if I can get in touch with the owner. They'd have to give me the number and not some stupid excuse I'd hope.
So worst case, I'd probably be getting sued for like 3 months rent or whatever? Can't possibly be any more than 6 months, they'd have to have a new tenant in there by then.
They will rent out every one of their other apartments that is available or that comes available before they even think of bothering to rent out yours. Why should they rent out your apartment if they have empty apartments of their own to rent and they have you by the balls ?
There is no guarantee you might not wind up being responsible for 6 or more months rent,especially since people don't tend to rent and move in November thru April.
Here's some information from the RGB, since it's a stabilized apartment (from the OP's other thread): NYC Rent Guidelines Board
If you want to broach a settlement with the landlord, I would seek the assistance of an experienced housing lawyer to help you draft a settlement offer to end the lease. There are resources on the RGB site for the bar association, which has a legal referral service. I would also contact your local elected representatives to ask if their office can refer you to someone who could assist in your situation. You can also search for a lawyer on martindale.com.
Good luck.
ETA: On the RGB site, it says that recent court decisions have held that the landlord is not under any duty to promptly re-rent the apartment. Judge Judy, though entertaining, is an arbitrator, so that's a different application than NY housing court decisions.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
I would also not go back and forth with the on-site leasing staff, since they are employees of the owner, not real estate agents. You should discuss the situation with legal counsel before proceeding with respect to dealing with the management company/owner on your own. If you have paid the rent for September, then you have a few days to get a referral and at least talk to an attorney before proceeding with attempting to break and settle the contractual obligations of the lease.
I'm nearly 100% certain that you are not the first case in which this has happened for the owner/management company/complex, so you have received their initial offer when you asked them to break the lease when they said that they do not break leases. Under the information on the RGB site, that would indicate that they do not intend to let you out of the lease, so the next step would be to retain counsel to protect your credit and settle the matter expeditiously.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
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