5 Reasons to Allow Lease Termination

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5 Reasons to Allow Lease Termination

June 21, 2019

Tenant turnover is a financial liability for rental property owners. However, there will always be that one tenant who wants out of a lease before it expires. Such desire could stem from a wide range of possibilities: job loss a reduction in work hours, illness and sometimes a tenant no longer enjoys living in a particular zip code. Whatever the reason, IPS suggests that there are five legitimate circumstances in which landlords would be prudent to allow the lease to be "broken".

1. Military

Stable housing simply is not an option for so many who are willing to sacrifice their lives on behalf of our freedom. If your military tenant is told to go, they must go! The least you can do as an honorable American citizen is graciously release them from their lease without penalty. In fact, it would be illegal for you not to do so as federal laws protect our brave men and women from consequences of lease termination.

2. New Job

Job transfers are also a common cause for early lease termination. Landlords would be prudent to include clauses in the contract which pertain directly to this situation.

3. Unemployment

Unfortunately, employment lay-offs are becoming more common than in years past and your tenant would need to be released in the event such unfortunate circumstances were to occur. There would really be no benefit to the landlord to refuse the break in lease as the tenant's financial status would change drastically. Always try remain calm and professional and, most importantly, end things on good terms. Referrals are a big part of any real estate proposition and you want to maintain good relationships to the extent that is possible.

4. Extenuating Circumstances

Divorce, long-term illnesses, death, loss of a loved one and other life circumstances are a factor in early termination of a lease. We are all susceptible to such unfortunate circumstances and it is best to recognize the bigger picture and graciously bid your tenant good-bye in the event he or she be faced with such tragedy.

5. Difference of "Opinion"

It is awkward for all involved parties when tenants and landlords simply do not get along. The truth is that you really don't know someone until you live with them... or they live in your rental. What seemed like a great deal in the beginning might sour as time goes on. Perhaps the tenant complains constantly about minor issues or the way maintenance is performed. They might even be tardy with rent payments. Whatever the case, sometimes it is more beneficial to part ways, ensuring that your landlord name goes unsullied rather than add fuel to the fire. Standing your ground may not pay off in the long run.

Related: "4 Common Tenant Complaints"

In Closing

Always maintain a professional demeanor and try to remain understanding in all circumstances. Be sure you are following rental laws and documenting everything. It is best to have a policy already in place outlined in your lease that you and the tenant have already agreed to from the start of the lease. This sets clear expectations and should the issue arise there is no back and forth, it has already been agreed to.

For more information, contact Innovative Property Solutions today!

Innovative Property Solutions

8833 Perimeter Park Blvd Suite 301, Jacksonville, FL 32216

(904) 321-9020

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