As a property owner, you’ve likely spent a lot of time ensuring your tenant is the right fit. From screening tenants to setting up lease agreements, a lot goes into securing an ideal rental situation. But it’s all smooth until your tenant decides to break the lease and move out.
If that sounds anything like you, not knowing what to do if a tenant breaks the lease can cost you more money than you anticipate. Read on to learn how to navigate your tenant breaking the lease and what to do about it!
What to Do if a Tenant Breaks the Lease
Stats show that instead of sticking to the original terms of the lease, 48.7% of tenants end their lease agreements after the agreed time has passed. While this won’t happen every time, you need to be prepared for the situation beforehand.
Oftentimes, tenants believe that they can simply dodge the hassle of eviction by leaving if they don’t pay the rent. But the truth is, they’re still liable to pay rent for the entire period they agreed to. So, what to do if a tenant breaks the lease?
Let’s look at different possible scenarios and figure out ways to get through them:
Situation #1. Break Lease Without Prior Notice
Sometimes, you head to your property only to find out your tenant has long left without any notice. This makes things tricky, especially if you can’t even reach out to them. Here’s what you can do about it:
- Inspect & Document: Do a move-out inspection and look for any damages to your property. Inspecting for rental property maintenance is crucial to protect it.
- Keep Records: Save all communications with the tenant; you might need them in case of legal pursuit.
- Inform the Tenant: Drop them letters reminding them they owe rent until a new tenant is found. Know exactly how much they owe you. Hire a professional property manager to avoid things from getting messy.
- Follow on Rent Collection: In case of non-payment, you may need to use eviction or civil court processes.
Situation #2. Break Lease With Advanced Notice
Some tenants may have genuine reasons to move out early, such as job transfers or medical emergencies. Regardless of the reason, if they give you advanced notice, it’s important to tackle the situation thoughtfully.
- Get Advance Notice: Try getting the advance notice as soon as possible to start looking for new tenants. This minimizes the time your property will remain vacant.
- Look for New Tenants: Start tenant screening again to find a reliable replacement.
- Establish Lease Termination Conditions: As a landlord, you can decide to hold the tenant responsible for rent until a new tenant is found.
Situation #3. Break the Lease With Proper Notice
In many places, tenants are required to give at least 30 days’ notice before moving out. If your tenant has given you a proper notice for breaking the lease, here’s what to do:
- Understand the Lease Agreement: In many instances, your tenant will still owe you rent until the lease ends if the property remains vacant.
If it’s a month-to-month lease where tenants can give 30 days’ notice without penalty, this won’t be seen as breaking the lease.
Final Thoughts
Now that you know exactly what to do if a tenant breaks the lease, act accordingly, depending on your situation. If possible, talk to your tenant to work out a way. Then, decide whether it’s worth chasing the old tenant or moving forward with a new one. The key, however, lies in setting up a solid lease agreement beforehand to avoid any such hassles!
If landlord responsibilities get a lot for you, let the Home Team manage your properties for you!
