Tenant ending lease early

[The BMW Guy]

Doing some research already, but thought I'd get some confirmation too.

My tenant wants to break his lease early. Signed a 2 year lease but he wants to move out about 11 months early. He's been a great tenant so I have no problem with helping him out.

I'm just wondering though, if I do find a tenant but the rent is less...is my tenant responsible for the difference?
I would think not, but just thought I'd confirm.

Any other things to be aware of regarding a tenant breaking the lease early?

[diamondedge]

This may not exactly help you, but when I signed my year lease w/ a property management agency, they had a stipulation that if I were to break the lease, I would have to pay 3 months rent as compensation.

So with that...I direct you here:

https://www.servicealberta.ca/618.cfm

And the nitty gritty act:

http://www.qp.alberta.ca/1266.cfm?pa...=9780779737925

[rob the knob]

be careful. unhappy tenant can be problem and cause problems.

[guessboi]

Just keep the security (damage) deposit and call it a day if he is a great tenant.

[Rat Fink]

.

[Feruk]

Plus it's illegal to keep the deposit as rent...

[gwill]

You ended a few leases early over the years? What are you a gypsy?

[revelations]

Originally posted by gwill
You ended a few leases early over the years? What are you a gypsy?

The term "Nomad" would be more appropriate. Gypsy implies wreckless actions.

[revelations]

Originally posted by The BMW Guy


I'm just wondering though, if I do find a tenant but the rent is less...is my tenant responsible for the difference?
I would think not, but just thought I'd confirm.

No, there could have been a change in the rental market conditions which no reasonable landlord would be able to claim as a legitimate "loss" from a tenant.

[CompletelyNumb]

Except he has a lease signed guaranteeing him the hypothetical higher rate. My current landlord said that he let's people out early sonlong as he can find a suitable tenent. No harm no foul. But if it rents for less, old tenant subsidizes that loss for the remainder of their original lease.

[FixedGear]

If you have a good relationship with the Guy and want to be nice, just let him out of the lease. However, if it isn't a great relationship and you want to be a dick, I think you can hold him to the terms of the contract. If it was me, I would probably just let them out of the lease.

[max_boost]

Originally posted by CompletelyNumb
Except he has a lease signed guaranteeing him the hypothetical higher rate. My current landlord said that he let's people out early sonlong as he can find a suitable tenent. No harm no foul. But if it rents for less, old tenant subsidizes that loss for the remainder of their original lease.

When it comes to money, trust no one.

I have heard all kinds of sob stories from tenants over the years.

Talk to them and see what works. Whether it's eating their damage deposit, or let them go freely if they find a replacement etc. etc.

[Rat Fink]

.

[max_boost]

It's common to break leases. I don't bother with contracts. I wish I was a lawyer though.

Tenant: What are you gonna do? Sue me?
Me: Fuck ya!

[spike98]

Originally posted by CompletelyNumb
Except he has a lease signed guaranteeing him the hypothetical higher rate. My current landlord said that he let's people out early sonlong as he can find a suitable tenent. No harm no foul. But if it rents for less, old tenant subsidizes that loss for the remainder of their original lease.

The unfortunate thing about this practice is that its illegal.

There are few miss conceptions here that should be cleared up:

1. Its illegal to use the security deposit as rent so withholding it for early termination of the lease is also illegal.

2. You can not charge the previous tenant for any rents over and above the agreed (lease) amount. So if a tenant moves out. Thats it. Early or not. You cant have the previous tenant subsidize any difference in rent....without a judgement (more on this bellow)

3. If a tenant terminates the lease early, the landlord must take reasonable steps to re-rent the property. Should those efforts fail, then, and only then, the landlord may seek damages from the previous tenant. "Reasonable steps" aren't outlined but would be up to the judge to decide should small claims be pursued. In today's market, it should be easy to rent the place on short notice and for the same rent amounts.

4. Leases are a binding contract. However, any item within the lease that is in disagreement with the landlord tenants act, the act will prevail. Period. In fact, a phrase outlining this must be in your lease or its void.

5. For any and all agreements (rental agreement or otherwise) you have to be able to prove damages that are a result of the breach of the agreement. In this case, you would have to have suffered monetary loss despite reasonable efforts to re-rent the place. The onus would be on you to prove the damages and your efforts.

Source: Landlord that has been through lots of this...on the renter end a long time ago and on the landlord end more recently.

[carson blocks]

Originally posted by spike98

There are few miss conceptions here that should be cleared up:

1. Its illegal to use the security deposit as rent so withholding it for early termination of the lease is also illegal.

Source: Landlord that has been through lots of this...on the renter end a long time ago and on the landlord end more recently.

It's not illegal to deduct unpaid rent from a security deposit. The tenant cannot use it as the last months rent, but if they don't pay the last months rent, the landlord can keep the deposit.

Source: Actual laws and stuff

Center for Public Legal Education Alberta

Service Alberta - Security Deposit information

Calgary Legal Guidance

[spike98]

Originally posted by carson blocks


It's not illegal to deduct unpaid rent from a security deposit. The tenant cannot use it as the last months rent, but if they don't pay the last months rent, the landlord can keep the deposit.

Source: Actual laws and stuff

Center for Public Legal Education Alberta

Service Alberta - Security Deposit information

Calgary Legal Guidance

Perhaps i wasn't clear. I should have added the "last months" to the unpaid rent portion of point 1. You are correct.

However, you still cannot withhold it for early termination if the rent has been paid accordingly.

[Mckenzie]

I think the general idea to prevent it getting ugly in courts is for landlord to be open to any lease ending early, but being clear they need to be kept whole for what they would have received for rent had the term not been terminated early. The law is very clear, if the tenancy ends early, the landlord must attempt to re-rent, and only when it is re-rented can the damages be quantified. The problem as always is enforcement of judgement and tenants being reasonable. I dealt with this last year and was left holding the bag as they just walked away, trashed the place and was a total mess paying the bills.

[ee2k]

Originally posted by The BMW Guy
Doing some research already, but thought I'd get some confirmation too.

My tenant wants to break his lease early. Signed a 2 year lease but he wants to move out about 11 months early. He's been a great tenant so I have no problem with helping him out.

I'm just wondering though, if I do find a tenant but the rent is less...is my tenant responsible for the difference?
I would think not, but just thought I'd confirm.

Any other things to be aware of regarding a tenant breaking the lease early?

On the contract that you had the tenant sign, what were the stipulations on early lease breaking? Did you have any? If so, follow that. Otherwise, what you follow depends on how nice or vindictive of a person you are. You don't have to shaft someone with difference in rents just because the market dictates it, it's a risk that you took when you signed the lease. Rental income is not to be guaranteed income.

Also, from what i recall, when I rented last, the [big company] rental company allowed you to break a lease with a 3 month notice of termination. So even with that your ability to hold him to it could be limited to just this. In my case it made sense for me to find someone else to take over my lease, which was allowed.

[FraserB]

Get an opinion from a lawyer who knows this stuff. Then do everything by the book, even if it hurts the tenant. When there is money involved, never try to be friends about it.