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Is this breach of contract?

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  • #16
    Originally posted by StateOfMyHead View Post

    But giving notice to break a contract without options or agreement of both parties doesn't make it ok.
    I agree, they should have asked nicely rather than giving a notice


    • #17
      A commercial company will pursue rent until its rented and keep any deposit. Nothing personal, just business. Forfeit deposit for breaking contract.


      • #18
        Communication regarding a breach will have more weight from an attorney - even a very cheap attorney. Otherwise, lesson learned and get a bigger deposit next time. “Good” people still do sucky things when it’s in their best interest.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


        • #19
          For transparency, I own a property management company, we see this situation often and generally handle as follows:

          Communicate with the tenant on their plan and establish that it is not what was agreed to in their lease. That they are responsible for rent and other expenses (utilities, damages to the property, etc.) through the term of their lease until a new tenant is found. Our lease has a early termination penalty in it of one months rent (this is breakeven cost to our clients for releasing fee, their time and other minor expenses they'll likely incur from the changeover). The termination penalty is probably good to add going forward because it makes this process known and cleaner for both sides.

          Tell them you will be marketing the property and doing showings with 24 hours notice to them. Tell them they need to have the house in a good showing state as they benefit from having a new tenant as soon as possible to avoid paying rent any longer than needed

          Make sure you still perform a move-out inspection when the current tenant leaves and add up all costs clear through the new tenant moving in before giving their deposit back.

          Depending on the individual state's Landlord-Tenant Act, legal enforceability will vary but often it favors the tenant in a residential situation, best bet is to be clear on the process and work together to get it released and minmize out of pocket costs. The release doesn't need to be just anybody, find a quality tenant with the same standards that you would if it were a normal vacancy.
          Noah Swank, Real Estate Investment Advisor
          n[email protected]