<p>I hope some of you would have some insight into something like this - My D is unhappy with her apartment, and has found another place she would like to live. She has 6 months left on her lease. Her contract calls out penalties for leaving early, which are fairly reasonable, and which she can afford. But the thing that’s holding her back is that she would feel bad to ‘break her lease’, and also that it could be held against her by future landlords. My question is: if you pay the penalties, thereby fulfilling the terms of the contract, would that be deemed "breaking a lease? And even if it technically isn’t, could it still be held against her? Apts seem to do a lot of vetting of their tenants. </p>
<p>Management is aware of, but not responsive to her issues, and while her points are not invalid, it’s not anything she could really have a legal case about. Thanks for any input!</p>
<p>As artlover says: " If she fullfil the terms of a lease, she has not break the lease." Correct. So if she leaves early, she has not fulfilled the terms of her lease, and must pay a penalty because of that.</p>
<p>Sure, if she leaves early like you’ve described she is breaking the lease. And there can be consequences for that. BUT- the possibility for breaking, and the consequences apparently are clearly spelled out in her lease. I would say- as long as she gives plenty of written notice in advance, and she follows the steps in the lease, then there should be no further repercussions. In fact, she would be paying the penalty * because* she didn’t fulfill the terms of the contract.
Just like paying a speeding ticket: a person has paid the penalty, but it doesn’t mean they weren’t speeding.</p>
<p>That is why giving LL advance notice in writing(and keep a copy) is so important- not necessarily just because it is a legal requirement, but because it also helps to generate good will. If tenant tells LL today that she’ll be out tomorrow, that makes it tough on LL; and since she made re-renting so tough on him, he might try to make it tough on her.</p>
<p>There can be another alternative: can tenant negotiate an early end to the current lease? Negotiating an early end, even if she paid essentially the same penalty, would not be breaking a lease. Her conscience might feel better, and any future LL could feel good about that resolution.</p>
<p>Her options:
stay in lease
break lease, pay penalties
break lease try to wriggle out of penalties
negotiate an early end</p>
<p>I’m unhappy with this apartment and have found another place and would like to end the current lease. Could you suggest how we should proceed?</p>
<p>The landlord could ask why she is unhappy and offer to resolve the problems (those problems could affect future tenants too), have other renters waiting in line where termination wouldn’t be too much of a problem, or hold her to the letter of the lease.</p>
<p>But she would find out where she stands.</p>
<p>I had a tenancy-at-will for our son many years ago and he was very unhappy with the place and we moved out after a month - I just gave him half a months rent and he was happy - he even helped move our son’s stuff to the new place. I’d doubt that he had any problems finding new tenants - it was in a good location but it wasn’t clean and I had concerns about escaping in a fire (basement apartment with only one exit).</p>
<p>I think #4 is more like “I want to leave in two months and if you let me out of the lease early without penalty I won’t call the health department.”</p>
<p>As for repercussions - if a future landlord calls the current landlord for a reference and learns your D moved out before the end of the lease, regardless of whether she paid whatever penalties are called for or negotiated a clean exit, it will absolutely be held against her. It may not be a make-it-or-break-it factor if she can articulate good reasons for moving early, but “I found something I liked better” isn’t really going to cut it.</p>
<p>I guess notrichenough does come up with a 5th option, move out and threaten to make up health violations in order to have better leverage when one reneges on a contract. I hadn’t thought of that. I hope notrich was just kidding.</p>
<p>Anyway, since you asked the diff between my options 2 and 4. I answer this as a(nearly) 20 yr landlord. The difference is essentially the good will- or lack of. If a tenant negotiates an early end with me, then I can have no complaint with him- we struck a deal. All future references, I’d say we negotiated an early end. With option 2, I’d say the tenant did not comply with our agreement, moved out early, and had to pay financial penalties as a result. Either way, the tenant moved out early, but only 1 way was leaving honorably. Even if a person negotiates terms the same as the penalty terms, at least both parties will agree it was negotiated, and handled honorably. I’d add that means something to some, nothing to others, but it seems to matter to the OP tenant. Sometimes an upfront-payment or leaving a few days early, something like that, can help in a negotiation.</p>
<p>In option 5, added by notrich, as LL if I was confident I complied with all obligations, but tenant was making this up to renege, then I’d choose to be as hard as the law permits on the exiting tenant. Making up false allegations would not be a good way to win favors from me.</p>
<p>bc is quite right, that the reason tenant’s unhappy might be something the LL can improve upon, maybe not. If it could, it sure is worth asking about. I’ve not addressed the legal aspects of breaking a lease because laws vary in states, and because Op isn’t asking about that perspective.</p>
<p>Who said anything about making stuff up? I was just giving an example of a possible negotiation strategy. If there are health code violations that the landlord won’t fix, the tenant would be smart to use that to negotiate an exit.</p>
<p>I’ve been a landlord since the 80’s. My leases don’t provide an “out” by paying penalties; the tenant is responsible for the entire term of the lease. I have a duty to re-rent as quickly as possible, but the tenant is still on the hook for the rent until I do.</p>
<p>If I am evaluating a prospective tenant, and I find out they broke a lease, I want to know why. If the reasons are legit IMO (“my job was transferred to a different city”, “the landlord wouldn’t fix the heat”, for example) I’ll give them a pass.</p>
<p>If the reason is frivolous (“I found a place I like better” for example), then I don’t take you seriously because you’ve shown you don’t take your commitments seriously. What would make me believe you intend to fulfill the terms of the lease you sign with me?</p>
<p>To answer your question about who is making stuff up: The Op makes no mention of health code violations, only that tenant is “unhappy” and has found another place.
It was Notrich, in post 7 that was the first to mention using health code violations while negotiating for an early end to her lease. In this thread, the Op has posted absolutely nothing to indicate there are valid health code violation concerns. If the tenant does not truly have health code violations, then using them as a “possible negotiation strategy” would indeed be making them up.</p>
<p>Post #10 would be my response too. Only some markets have tenants in the waiting. Usually getting a new tenant costs the LL substantial money. BTW in my case where the husband died unexpectedly–we reached a good compromise. She will stay through end of lease at a reduced rent ($300 off) until the end of the lease and then probably move. That saves me trying to rent a big house during the winter (very tough) and or keeping the house heated and safe all winter. Very much a plus for my piece of mind.</p>
<p>Payment of the penalty is tantamount to a lease buy-out, which should not result in any negative reports. She can ask, in advance, to see the documentation that will be provided, and likely need to be signed by both parties, if she exercises what appears to me at least to be a right, not a default.</p>
<p>When your daughter signed a lease she agreed to rent the apartment for a specified period of time. If she leaves early she is still technically responsible for the rent. That said, the landlord has to make a legitimate effort to rent the unit. If he or she is unable to rent it then he or she could take your daughter to small claims court to collect the missing rent. If future landlords find out that she broke a lease of course it will be held against her.</p>
<p>For me if I hated an apartment I would face the possible repercussions of breaking a lease in order to move out. Life happens and sometimes an apartment just isn’t working. A lot of landlords understand this and would be willing to work with a tenant to facilitate an early exit. Some landlords just aren’t interested in listening and at some point it becomes clear that you’re wasting your breath by talking to them. I have seen both types. Best luck to your daughter.</p>
This depends on how the lease is written. I’ve never seen or used one that allows a tenant out of a lease by paying some sort of penalty, but there’s no reason why you couldn’t (although you’d be giving up one of the prime benefits of a lease, which is a guaranteed rental period).</p>
<p>But I don’t know anyone who rents to students, myself included. I wouldn’t be surprised if it is better for a landlord to collect a penalty from a student that is reasonable enough that the student will actually pay it, instead of the time and expense of going to small claims court only to win a judgment they’ll probably never collect on.</p>
<p>I agree with the last 2 paragraphs of post 10, too.
I ask posters to see the distinction between that post, and my post with the 4 options.
I strongly agree if a tenant broke a lease, I’d want to know why. This helps confirm my earlier post that negotiating an early end is advantageous because it isn’t breaking a lease. No need to explain breaking a lease if a new agreement is reached.
I do not use, but I have seen leases that included a buyout. I have also seen leases that essentially say- if you move out early, you automatically forfeit your deposit-. In my state, that phrase is unenforceable. But, that’s getting into the specific law, and I don’t think that angle is what the Op is seeking.</p>
<p>I strongly agree with Barrons in 16. I have always encouraged tenants that reneged on leases with me to negotiate a settlement, rather than fight it in court.</p>
<p>Leases with a buyout are not uncommon, at least in college communities in Southern California. Often, it’s a win-win for the landlord, who gets to collect the buyout and re-rent the unit with minimal, if any, vacancy. It appears that this lease provides upfront for the negotiation: pay “$x” and the lease contractually ends; it is neither violated nor reneged.</p>
If this is standard for the market the OP’s D is in, the next lease will likely be the same. In that case, I don’t think there will be any negative ramifications.</p>
<p>One thing no one has mentioned so far is whether the lease permits the tenant the ability to sublet and if it might be possible for the OP’s D to find a sublessee. Local law and the lease will dictate the conditions for sublease (in many cases permission can not be unreasonably withheld). Is it possible for the current renter to find a new tenant for the apartment?</p>
<p>Years ago, my LL let me out of my lease early. I had offered to find a new tenant or sublessor, which I thought would not be too difficult to do. He was happy to get the apartment back and the vacancy increase that would be allowed under the local rent law. I doubt the place was empty for any length of time.</p>