Owning a rental property can come with its fair share of complications or difficult situations, especially if you’re not experienced and selfmanaging your rental property.

As a professional property management company, we know all too well one common issue selfmanaging landlords deal with is their tenant breaking the lease agreement.

So, if you are a landlord or rental property owner and have not dealt with this situation, chances are you’ll encounter it in due time. If your tenant breaks the lease, it may affect your property and financial situation and cause a lot of time to find a new one.

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What happens if your tenant vacates early and broke their lease agreement?

First, you’ll want to look at your lease agreement and determine if you already have a lease default or early termination clause written in your lease agreement. If you do, you will need to follow the terms of your lease agreement.

If you don’t have this written into your lease agreement, you’ll want to add this as soon as possible. Having a roadmap already in place will help with knowing what to do if this happens and help the tenant understand that they are signing a contract they are responsible for rather than a shortterm obligation.

Once you’ve determined your lease default penalty, you’ll want to ensure that the terms are followed. For example, if you require two months to break the lease agreement, you’ll want to receive this before your tenant vacates the premises.

What happens if my tenant vacates without notice?

If you have an irresponsible tenant that provides no prior notice, they will be breaking their lease; it may be more challenging to collect the lease break fee.

Regardless, if you cannot get a hold of your tenant, you’ll want to make sure you complete your security deposit disposition which is a notice you need to provide to claim their security deposit.

You’ll want to include your lease break fee on the security deposit claim form. Each state has different security deposit requirements, so you’ll want to understand this first.

Once your tenant receives your security deposit claim form with the due amount, they will either pay or not. One benefit of using a professional property management company is they will typically send the tenant to collections to receive the outstanding balance due.

What are common lease break fees?

1. Typically, the most common lease break fee is two months lease break fee and a forfeited security deposit.

2. Another standard lease break fee or term in a lease agreement is that your tenant is responsible for ongoing rental payments until you find another tenant to replace your current one.

How to reduce your tenant from breaking the lease agreement?

1. Tenant Screening Single handily, the most crucial aspect of owning and managing a successful rental property is to screen your prospective tenants properly.

2. Lease Default or Early Termination A solid lease agreement for your rental property will help reduce rental property risks. If you don’t have this section in your lease agreement, you can permanently attach an addendum to your lease stating your early termination requirements.

3. Leasing Red Flags If you are showing your rental home to prospective renters, there are specific red flags that can help determine if they will be reliable tenants.

So what to do if your tenant does break the lease?

You’ll need to follow the terms of your lease agreement; otherwise, if you don’t have a lease default section in your lease, you’ll want to research what your state requirements are.

For example, here in the state of Florida Florida Statutes 83.595 states a landlord can charge up to 2 months of rent for lease default or liquidated damages.

Make sure you check your state requirements to see what you can charge your tenant for breaking their lease agreement.

If you have any questions or want to learn more about our Property Management Services, Contact us today!

https://thelistingrem.com/contactus/

#leaseagreement #leasebreakfees #propertymanagement

______ Content ______
0:00 Did your tenant break the lease?
0:43 What happens if your tenant breaks the lease agreement?
1:20 What are common lease break fees?
1:34 How to reduce this issue?
2:00 What to do if your tenant does break their lease?
2:30 What not to do if your tenant breaks the lease
3:00 Stick to your Lease Terms!