Tenant Breaks lease early

This is a discussion on Tenant Breaks lease early within the Landlord vs Tenant Issues forum, part of the REAL ESTATE & PROPERTY LAW category; My tenant gave me written notice on Jan 10 2009 that she would be terminating the lease on Mar 20 ...

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Old Mar 24th, 2009, 06:37 PM   #1
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Confused Tenant Breaks lease early

My tenant gave me written notice on Jan 10 2009 that she would be terminating the lease on Mar 20 2009 due to a job transfer. No letter from employer. The tenant signed a one year lease agreement on Aug 20, 2008. The tenant actually moved out on Feb 14 2009 and stated that just use her security deposit as last months rent. I told the tenant that the security deposit could not be used as last months rent as it states in the lease agreement. The tenant was asked for a letter from the employer stating the transfer since it states i the lease that the lease can be cancelled upon 60 days notice from the tenants employer. To date no letter, the tenant quit there job to move out of state. I was able to rent the home very quickly March 1st 2009 and the tenant now wants there last month rent back her payment for Feb 20th -Mar 20th payment stating she should get her now "Security" deposit back. Minus the couple of days that the home was not rented. What can I legally do in the State of Michigan? I have since gotten a water bill that the tenant did not pay and noted damage to the garage door. Hope someone can help.

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Old Mar 24th, 2009, 07:39 PM   #2
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Default Re: Tenant Breaks lease early

You should have sent an itemized statement of deductions within 30 days of the date you learned that she had moved out. Did you fail to send this accounting for the deposit? If so, do it immediately! List all deductions you have against the deposit (rent until it was re-rented, the water bill if it is liened against the property if the tenant doesn't pay it, the damages you found, advertising costs since she broke the lease, etc.). Itemize them and list charges for each. If any money is left, send a check along with the statement to the tenant.

BYW- being transferred to another job or location is not a reason to break a lease unless it is a military transfer. If this is a clause in your lease, take it out!
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Old Mar 24th, 2009, 07:50 PM   #3
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Default Re: Tenant Breaks lease early

What about her intent to move out on Mar 20th? Can I keep the monies for that and stating that she was "being transfered" or does that not matter? What if I have a friend of the family leaving in the rental and no signed lease agreement?
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Old Mar 25th, 2009, 10:11 AM   #4
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Default Re: Tenant Breaks lease early

What about her intent to move out on Mar 20th? Can I keep the monies for that and stating that she was "being transfered" or does that not matter? What if I have a friend of the family living in the rental and no signed lease agreement? I have an ad running to rent the property I just did not want the property to sit empty? Can I charge the tenant, who wants her security deposit back until the home is rented?
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Old Mar 25th, 2009, 03:54 PM   #5
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Default Re: Tenant Breaks lease early

While she may have intended to move out on that date, it is not that particular date that matters to you. Your 30 day window starts as soon as you know that she has vacated. If you knew on Feb. 14th that she moved out, your 30 days starts then. (If you did not discover this until several days later, your 30 days started when you found out.)

She gave notice to vacate on January 10th, so she gave her required 30 days notice to move. It really doesn't matter why she broke the lease, unless your lease allows a lease break because of job transfer. If you have this clause in your lease, remove it before the next signer! State laws do not recognize that as a legal reason to break a lease. Only a military transfer or deployment is permitted as a legal lease break reason.

You must do the itemized statement of deductions from her deposit within your state's time limit of 30 days. You may charge for rent until the unit is re-rented (or occupied). You cannot charge her rent if someone else is LIVING in the unit. It is no longer available to rent that way. (The only exception would be if someone was a "night watchman" or other type of security guard who only stayed there at night, but had no personal property there and did not live at the residence. He could not live there full time. He would have to have another residence.)

You can charge her for any damages to the property. For any advertising costs. For agent fees if you use one to find a new tenant. For any unpaid utilities bills that will be liened against your property if she doesn't pay them. Or for any other unreimbursed expense you have because she broke a lease with you.

If you have not done this statement, do so immediately.
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Old May 18th, 2009, 08:30 PM   #6
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Default Re: Tenant Breaks lease early

"You may charge for rent until the unit is re-rented (or occupied)."

What law is cited here? I can't seem to find it. Thanks!
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Old May 19th, 2009, 10:59 AM   #7
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Default Re: Tenant Breaks lease early

That is not a specific state law quoted, but general information from many cases in many states. When a tenant has a lease, he is obligated by that legal contract. When he breaks the contract, most states' laws say the LL must be made whole and that the tenant must pay any damages due to his lease break. The unpaid rent that the LL is losing is part of those monetary damages. Since it was the tenant's obligation and signed contract to pay that rent, continuing his obligation makes the LL whole by not allowing him to lose money. Thus the tenant owes rent until the unit is re-rented, advertising fees, agent fees if you use one to find a new tenant, and any other unreimbursed expenses. This is consistant with the idea of making the LL whole by not allowing him to lose money on the contract due to the tenant's default.
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Old May 19th, 2009, 11:01 AM   #8
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Default Re: Tenant Breaks lease early

I should add that these obligations have been upheld in courts in every state. Some states have limited the amount of months of unpaid rent to a few months (on the idea that a diligent LL could re-rent in that amount of time). Other state laws say the LL has no obligation to find a new tenant and the former tenant is obligated through the end of the lease.
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