Author Topic: Early lease termination  (Read 1427 times)

Stephaniekb

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Early lease termination
« on: March 21, 2014, 10:11:07 AM »
We have a 2-BR rental unit with tenants who would like to end the lease early (May 31 vs. their current August 31). We have no problem with them ending the lease early because the rental market here is hot and we think we can increase the rent by $150/month. My question is this: one tenant wants to end her lease on March 31 and be taken off the lease as of that date; she will pay us for April and May rent. The other tenant wants a revised version of the current lease to indicate that the lease ends on May 31 instead of August 31. Should I write a new lease for these 2 months, or amend the current lease (and if so, suggestions for how to word it would be appreciated!)

arebelspy

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Re: Early lease termination
« Reply #1 on: March 21, 2014, 10:26:59 AM »
I'm not 100% understanding.  Do these tenants have separate leases?  Do they pay separately?

The one wants to move out but pay two extra months, but the other will still live there those two months?
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Stephaniekb

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Re: Early lease termination
« Reply #2 on: March 21, 2014, 01:40:08 PM »
Currently they have 1 lease. Tenant A wants to stay until May 31, Tenant B wants to move out at end of March. She is willing to pay April and May rent but wants to be off lease since she won't be living there. I'm trying to figure out how to write addendum to current lease stating lease ends early (it currently shows lease through August 31) and that Tenant B isn't responsible for property after 3/31. Or, perhaps I should write an entirely new lease to cover the 2 months remaining?

arebelspy

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Re: Early lease termination
« Reply #3 on: March 21, 2014, 02:03:54 PM »
I would write two separate documents.

One a "Early lease termination" or whatever, saying that (tenant name) will be paying $X (the amount of which is the april and may rents added together) for ending their lease early , and their lease will end March 31.

The other will be a new lease with the other tenant that ends May 31.

Does that make sense?

Also, I should add: Consult a lawyer, don't listen to a random person on the internet.  ;)   But that's what I would do.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.