If you lease from private party, what happens when you break the lease?

E

escrowbear_IHB

New member
Let's say I am in the 3rd month of a 12 month lease. If I break the lease because we buy a house, am I on the hook to pay the remaining 9 months?



What if I found another tenant, but the landlord keeps rejecting them. What if the landlord doesn't do his part and try to find another renter for the property?
 
How I understand it to be:

Unless they have a rent break fee and they specifically note that you can not sublease/assign your lease you are on the hook for the whole 12 mo.



But there are probably ways around it.
 
[quote author="escrowbear" date=1238561771]Let's say I am in the 3rd month of a 12 month lease. If I break the lease because we buy a house, am I on the hook to pay the remaining 9 months?



What if I found another tenant, but the landlord keeps rejecting them. What if the landlord doesn't do his part and try to find another renter for the property?</blockquote>


How does your contract read?
 
Contract doesn't make any mention of a lease termination fee. Just says that the lease is for 12 months. Also doesn't allow subletting without letting the landlord know.



I think my guy will be ok if I talk to him and explain the situation. But I was wondering if lets say I tell him, and then we move out. But he makes no effort to try and get another tenant. And let's say I make the effort (craigslist, mls, or whatever) but he keeps rejecting them. I am thinking of worst case scenario.
 
[quote author="halfnote19" date=1238562046]How I understand it to be:

Unless they have a rent break fee and they specifically note that you can not sublease/assign your lease you are on the hook for the whole 12 mo.



But there are probably ways around it.</blockquote>


What ways?
 
[quote author="halfnote19" date=1238562046]How I understand it to be:

Unless they have a rent break fee and they specifically note that you can not sublease/assign your lease you are on the hook for the whole 12 mo.



But there are probably ways around it.</blockquote>


This is not correct. They need to set forth reasonable criteria for accepting the next renter in your place. They cannot just keep rejecting them at whim. You have renters rights. Further, if you were to move out, they would have to make a reasonable effort to fill the apartment. If they wait 3 weeks before putting out a new ad, then you dont have to pay those 3 weeks. You get the idea. Once someone DOES move in, your obligation ends. You may have to pay the difference (minus any time they were not mitigating their own costs).



Go back and re-read your rental agreement contract and look for language talking about assigning, subleasing, etc.



This is a very straightforward rent law issue. There are a variety of renters rights (make sure to look up California) info websites. You can use one of them to print out as a guideline and hand to your landlord and demand they comply. Make sure to make a copy of everything you send to them. Email works well too. This way, when it comes to brass tacks, you can dispute a claim to recover costs against you and have documentation to show that they were being unreasonable in accepting another tenant, etc.





***I left this window open for too long before submitting. I guess a few things were answered already***
 
Here are some of the bullets from the lease. These are the only things I could find about sub-leasing and termination.
<fieldset class="gc-fieldset">
<legend> Attached files </legend> <a href="http://www.talkirvine.com/converted_files/images/forum_attachments/298_o2sGu67vhCCdnQG6rmYh.doc" target="_blank" class="gc-files">lease terms.doc</a> <span class="gc-filesize">(209 B)</span> </fieldset>
 
THIS IS NOT LEGAL ADVISE - I AM NOT A LAWYER. This post is for information purposes only. You should obtain a lawyer if you have legal questions.



I will only talk about contracts generally, and your situation has certain specifics that could change the way an issue is handled.



In contracts, if you breach, the nonbreaching party has a duty to mitigate damages. In other words, they must attempt to relay the contract onto the market. So if someone just walks away from a lease, they are breaching a contract. Usually landlord gets the difference between the new renters rent rate and your previous rate, plus whatever costs to advertise/put the thing back on the market. (if its vacant, i guess they would get the whole months/length to reoccupy rent)If you find someone to take the lease, that is basically a cost averted, so you would have to pay the difference, if any, between the rates (because landlord suffered a loss of value with a lower rate over the next 9 months than he would have had if you performed the contract). But then again, some places have qualifications for renters, and the new renter must also meet those. When someone takes a lease it is an assignment, and the contracts usually say you must obtain permission from the lessor/landlord.



Another concept is liquidated damages. Liquidated damages are basically damages that parties contract for in the event of breach, so for example, your cell phone bill says you must pay $150 to cancel your phone plan, that is a liquidated damages clause. These types of damages are ok where they are not punitive, or made to punish, because public policy does not want people deterred from making contracts where they could be hit with huge damages that might exceed what they originally contracted for. So if Sprint wanted a couple thousand to cancel my phone plan, that would probably be an unenforceable liquidated damages clause.



So if someone who is leasing wants to leave and finds someone else, the new lessee would fill out an application just like everyone else who applied to live there, and once qualified would take over the payments. If not qualified, they have to know why.
 
A better avenue might be to look into what is unacceptable with your current apartment/home. There are a multitude of different things that might not be up to code, which would give you a legal reason to move out. Again, consult almighty internet gods for info on the details.



Have you given written 30 day notice yet? Once they are on written notice, they have reason to start advertising to refill the lease. If you, say, give written notice of your intent to move out, make a written inquiry into their criteria for a substitute renter, and even bring them one who is willing to lease at the same rate (this is different than sublease, but a new lease), then you would be building a very good case for yourself later on should this go to court.



Renters and landlords are in nothing more than a glorified contract. (with a few of its own specific laws). The short of it is that the parties are supposed to act in good faith. If this landlord is not, and is just out there to screw you over, start documenting it.
 
This is my take as a landlord....if the tenant wants to early terminate their lease, the landlord as the right to deduct the rental loss from the security deposit until the unit is rented (that's what I've always done the couple of times it's happen to me and I'd have my place rented within 1-2 weeks of the tenants moving out).
 
The other issue here is if the lease was done through RE agents.



The commission on the remaining months of the lease need to be accounted for as it was paid upfront by the landlord.



I would break my lease if I knew that my LL could find another renter quickly but considering that comparable homes are renting for less than they were 3 months ago... that's not going to happen.
 
Here is my situation. Our lease is due up in June. We want to purchase a home by the end of year. Therefore, I don't really want to sign another 1 year lease. Should I:



1. Just sign a 1 year lease, and terminate once we find a new home

2. Try to negotiate a month-month term, with maybe a 60 day notice (doubt this would happen)

3. Try to negotiate a shorter term lease



Should I be uprfront with the landlord and tell him our intentions of buying a home?



Also should I try to renegotiate our lease, since lease rates have gone down in the last year? He has "graciously" offered us the same rental price for another 1 year lease.
 
[quote author="escrowbear" date=1238627993]Here is my situation. Our lease is due up in June. We want to purchase a home by the end of year. Therefore, I don't really want to sign another 1 year lease. Should I:



1. Just sign a 1 year lease, and terminate once we find a new home

2. Try to negotiate a month-month term, with maybe a 60 day notice (doubt this would happen)

3. Try to negotiate a shorter term lease



Should I be uprfront with the landlord and tell him our intentions of buying a home?



Also should I try to renegotiate our lease, since lease rates have gone down in the last year? He has "graciously" offered us the same rental price for another 1 year lease.</blockquote>
Just do nothing and continue paying your rent, after your lease term is up the lease goes month-to-month (you do need to give 30-day notice when you are on a month-to-month). If your landlord comes to you asking you to sign another lease, you can request them to give you a 6-month lease in return for a slightly lower rental rate. I dont think it's the landlord's business on what your future intentions are in buying a home.
 
[quote author="usctrojanman29" date=1238629326][quote author="escrowbear" date=1238627993]Here is my situation. Our lease is due up in June. We want to purchase a home by the end of year. Therefore, I don't really want to sign another 1 year lease. Should I:



1. Just sign a 1 year lease, and terminate once we find a new home

2. Try to negotiate a month-month term, with maybe a 60 day notice (doubt this would happen)

3. Try to negotiate a shorter term lease



Should I be uprfront with the landlord and tell him our intentions of buying a home?



Also should I try to renegotiate our lease, since lease rates have gone down in the last year? He has "graciously" offered us the same rental price for another 1 year lease.</blockquote>
Just do nothing and continue paying your rent, after your lease term is up the lease goes month-to-month (you do need to give 30-day notice when you are on a month-to-month). If your landlord comes to you asking you to sign another lease, you can request them to give you a 6-month lease in return for a slightly lower rental rate. I dont think it's the landlord's business on what your future intentions are in buying a home.</blockquote>


The lease automatically rolls to a month-month? He can't kick me out? I'm assuming he could do that if HE gave me notice?
 
[quote author="escrowbear" date=1238649038][quote author="usctrojanman29" date=1238629326][quote author="escrowbear" date=1238627993]Here is my situation. Our lease is due up in June. We want to purchase a home by the end of year. Therefore, I don't really want to sign another 1 year lease. Should I:



1. Just sign a 1 year lease, and terminate once we find a new home

2. Try to negotiate a month-month term, with maybe a 60 day notice (doubt this would happen)

3. Try to negotiate a shorter term lease



Should I be uprfront with the landlord and tell him our intentions of buying a home?



Also should I try to renegotiate our lease, since lease rates have gone down in the last year? He has "graciously" offered us the same rental price for another 1 year lease.</blockquote>
Just do nothing and continue paying your rent, after your lease term is up the lease goes month-to-month (you do need to give 30-day notice when you are on a month-to-month). If your landlord comes to you asking you to sign another lease, you can request them to give you a 6-month lease in return for a slightly lower rental rate. I dont think it's the landlord's business on what your future intentions are in buying a home.</blockquote>


The lease automatically rolls to a month-month? He can't kick me out? I'm assuming he could do that if HE gave me notice?</blockquote>
Yes, he is required to give you notice if he wants you to move out (usually that is a 30-day notice).
 
[quote author="escrowbear" date=1238649038][quote author="usctrojanman29" date=1238629326][quote author="escrowbear" date=1238627993]Here is my situation. Our lease is due up in June. We want to purchase a home by the end of year. Therefore, I don't really want to sign another 1 year lease. Should I:



1. Just sign a 1 year lease, and terminate once we find a new home

2. Try to negotiate a month-month term, with maybe a 60 day notice (doubt this would happen)

3. Try to negotiate a shorter term lease



Should I be uprfront with the landlord and tell him our intentions of buying a home?



Also should I try to renegotiate our lease, since lease rates have gone down in the last year? He has "graciously" offered us the same rental price for another 1 year lease.</blockquote>
Just do nothing and continue paying your rent, after your lease term is up the lease goes month-to-month (you do need to give 30-day notice when you are on a month-to-month). If your landlord comes to you asking you to sign another lease, you can request them to give you a 6-month lease in return for a slightly lower rental rate. I dont think it's the landlord's business on what your future intentions are in buying a home.</blockquote>


The lease automatically rolls to a month-month? He can't kick me out? I'm assuming he could do that if HE gave me notice?</blockquote>


If you've been leasing the home for less than a year, the landlord would be required to give you a 30-day notice.

If you've been in the home for longer, the requirement in CA is bumped to 60 days.

Tenant is only required to give 30 days' notice.



<strong><a href="http://www.dca.ca.gov/publications/landlordbook/moving-out.shtml">California Dept. of Consumer Affairs Direct Link</a></strong>



Why have you set "the end of this year" as your purchase deadline?
 
[quote author="escrowbear" date=1238561771]Let's say I am in the 3rd month of a 12 month lease. If I break the lease because we buy a house, am I on the hook to pay the remaining 9 months?



What if I found another tenant, but the landlord keeps rejecting them. What if the landlord doesn't do his part and try to find another renter for the property?</blockquote>


Check out California Civil Code 1951.2. I have personally been through this before but because my roommate wanted to break the lease. Basically, you are technically on the hook for the remaining rent. However, the landlord has a common law duty to mitigate his losses. So he can't just sit around and then sue you for rent later on. He has to make an effort to try to get it re-rented. And if he does advertise it for rent he cannot advertise it for greater than what you are paying (trying to test the market). In my situation that is exactly what happened. And through some research I was able to call him on it and wrote him a detailed letter via certified mail. He never did respond to that but instead just said we were on the hook for damages which ended up being a reasonable solution. Hope this helps.
 
I think we are going to ask landlord for month-month rental. If he doesn't go for that, then we might inform him that lease rates have declined and might shop around to see if we can find a better unit to lease.
 
So I informed my landlord that I was moving out last week because I'm buying the place you all told me NOT to buy. She first said she was thinking about dropping the rent, but when I looked at her listing on MLS she actually raised the rent up $50. I was on a month by month so that wasn't an issue, but I thought rent prices were dropping?
 
You must log in or register to reply here.
Back
Top