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Old 06-25-2015, 06:56 PM
 
Location: Queen Creek, AZ
7,333 posts, read 12,416,300 times
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We have friends who are renting a house in Chandler who are nearing the end of their rental contract. They have the choice of renewing the contract at a higher rate, or paying a month-to-month rate.

They would like to know, if they decide to renew their contract, what are the state laws if they decide to buy? Can they legally get out of the lease agreement if they decide to buy a home?
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Old 06-25-2015, 07:00 PM
 
Location: Valley of the Sun
2,623 posts, read 2,363,732 times
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Quote:
Originally Posted by Pink Jazz View Post
We have friends who are renting a house in Chandler who are nearing the end of their rental contract. They have the choice of renewing the contract at a higher rate, or paying a month-to-month rate.

They would like to know, if they decide to renew their contract, what are the state laws if they decide to buy? Can they legally get out of the lease agreement if they decide to buy a home?
Your renewal is a legally binding contract. We bought a house prior to our rental lease ending and we could either stick it out or pay $3k with a 60 day notice to vacate to break the lease (paying rent on those 60 days as well). It varies by rental property management companies but legally they don't have to give you any break.

We ended up paying rent and a mortgage for an overlapping 4 months as it was cheaper than paying $3k and two months rent anyway.
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Old 06-25-2015, 08:40 PM
 
Location: Rural Michigan
6,341 posts, read 14,745,691 times
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There's no set penalty for breaking a lease, unless it's agreed upon in the lease. That said, the landlord has an obligation to mitigate any damages. (If you leave with 11 months left on the lease, they have to make a sincere effort to re-rent the place, they can't just leave it vacant and charge the tenant for 11 months).

As a landlord, I'd fully expect to re-rent in our current market within 60 days, prolly much sooner. As a tenant, I'd negotiate for an out provision for no more than 2 months rent. Anything above that and the landlord is going to be double-dipping. Anyone who won't give you an out provision isn't someone you want to rent from
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