5 Reasons Why Its Ok To Let A Tenant Break Their Lease
Letting a tenant break their lease is not something we often let happen, In fact, as a landlord you probably have fees and penalties in place should a tenant try to break their lease early. After all, having the security of knowing that a tenant is in their lease for about a year is the Real Link in relieving some stress and worry on your part. Meaning, it's just one less thing that you need to deal with and can focus on other things instead of constantly rotating your tenants.
Sometimes, however, tenants will want to break their lease. By this, we mean wanting to move out before the lease has expired. Often times renters will give you varied reasons as to why such as “I don't like it here anymore”, or “I lost my job.” Both, while you could argue are valid reasons, should be approached differently. For example, if the tenant simply doesn't like it there anymore you may have to awaken them to the real world and help them understand that they can leave, but penalties and fees will ensue. The second example, however, is a different matter. Sometimes it is okay to let a tenant out of their lease, and a job loss could be one of those potential reasons. In this article we will discuss 5 reasons in which you can allow a tenant to break their lease.
The first reason is that they are active or reserve military. Active or reserve military personnel can often be called up very quickly. And if they are, there really isn't anything you can do, as federal laws allow these tenants to break any lease. In fact, sometimes you might be obligated to hold their property for them so it will be there when they return. Therefore, it's a good idea to be familiar with these laws.
The second reason is that they get a job transfer. Job transfers are not the tenant’s fault, and often are good things for them. So, in these situations there really isn't any reason to try and enforce your contract. Instead, include a clause in your lease agreement that states they can get out of their contract due to a job transfer, so long as the transfer is over 50 miles or more away.
The third reason is because they lost their job. When your tenant loses their job and wants out of their contract, often times it's best to just let them walk away early. Otherwise, over time your relationship can become strained due to resources drying up. In these situations it's best to cut your losses, allow them to move on, and allow yourself to move on and find a more reliable tenant.
The fourth reason is that they encounter extraordinary circumstances. Unfortunately, bad things can happen to good tenants. Whether they get divorce, get diagnosed with a serious disease, or suffer some other type of misfortune. All of these different types of circumstances can cause radical shifts in income in outlook on life in general. So, it's best to show compassion in these moments and let the folks move on to focus on what it is they need.
The final reason is because they are simply a pain in the neck. Sometimes you'll find a renter that you just can never please or make happy, and never find the Real Link as to why. They constantly complain, they are late with their rent, and nothing is ever fixed properly. It's times like these when you just need to say enough is enough. You can inform them that it seems you cannot meet their needs so if they would like to move on and find something that makes them happy they are free to go. This will either get them out of your hair, or help them to back off and be a little bit more content.
In conclusion, you don't need to let your tenant break their lease for ridiculous reasons. But on occasion, there are moments when it is appropriate. It's up to you to use your best judgment to decide when these moments are and when it's time to enforce, or simply time to let go.