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Lease Agreement Early Termination Fee

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By accepting a deposit for termination fees, you give the tenant the opportunity to damage the property without being accountable. You can still file a claim with your small court, but it`s more time and stress. Keep the deposit as a separate item and do not mix its intent. Tenants want to break their leases for a variety of reasons – personal, professional or because the landlord has broken the lease. Depending on the reason, the landlord may be legally required to release the tenant without damage (as long as the tenant follows the protocol). In other situations, it is helpful to be compassionate and work with the tenant to find a solution. Under rent of a house, if the tenant who originally signed the lease finds another person who pays the monthly rent. The new client is a subtenant. An example of when this could happen: a student in a big city rents an apartment for a year, but only has to live in this apartment from September to May. The student then leaves the apartment and finds a temporary summer subtenant to live in the apartment and pay the monthly rent. Of course, all tenants must check their lease to see if a sublease is allowed or not before looking for a subtenant.

Unfortunately, many rental agreements do not allow tenants to rent a house to a tenant. There are many reasons why tenants want to terminate the lease prematurely. Personal or professional reasons. Or the landlord broke the lease. Whatever the reason, the lease and state lease-tenant laws will dictate the correct procedures. It`s up to you to decide whether to charge fees or ask tenants to pay rent until you find a replacement. On the one hand, offering a buyback is convenient and easy, but on the other hand, you may find yourself longer than you negotiated – and spend more money than you expected. If you are worried, you may have to take your tenant to court because you refuse to pay the rent while the unit is empty, a buy-back option is a good way to reduce that risk.