Most tenants sign a lease for a year at a time. This ensures that for that year, a steady income can be counted on and decisions for either finding new tenants or continuing a lease can be thought out and planned on. This helps landlords rest easy in tenant stability for the most part. However, there are some circumstances in which a landlord should agree to release a tenant from the lease agreement without penalties.
Active or Military Reserve
There are laws that allow military personnel to break a lease without any consequences or penalties. In some cases the law states that property owners are required to hold the property for military personnel while deployed. Ensure that you are up to date on your local laws and make sure you are prepared for these types of situations if you are renting to active, military reserve members.
Job Loss or Transfer
If someone loses their job, try to be understanding. It is in the best interest of both parties to let the tenant go in this case. If a job transfer takes the tenant far away from the rental property, there is really nothing to be done. Most likely this was out of the tenant’s control and almost any judge would grant the tenant a void in the lease if it went to court.
Nobody plans for bad things to happen when they sign a lease. Hard times happen almost always unexpectedly and can lead to life changing and financial hardships. Divorce, death, serious health conditions and financial crises should be looked at with an understanding perspective. Nobody going through these real tragedies should have to fight to be released from a lease early.
If a tenant is trying to be released from a lease for silly reasons, it is absolutely within your rights to have penalties. This will help deter them from leaving simply because they want to, and don’t need to. They signed the lease knowing it was for a year, or however long the agreement states, and they should be expected to uphold their side of the agreement. Always keep open lines of communication with tenants so that they feel comfortable coming to you with issues.
Contact our office to find out more about the subject of breaking a lease.