Sometimes, the unexpected happens. When you rent your property to someone, you have him or her sign a contract to ensure they’ll pay rent for a set time period. However, sometimes things just don’t work like that and your tenant will need to leave early.
At Hutton & Hutton, we understand that sometimes these things happen. However, the last thing we want is for you to be concerned and panic about losing money with an empty property. Therefore, we want to walk you through the steps we would take if the unexpected should arise.
(Credit: Skeeze on Pixabay) The breaking of a lease is stressful for all parties involved
1. Reasons why your tenants would leave
There are so many reasons as to why a tenant might break the lease on your property and a majority of the time it’s not a reflection of you or your property.
A new job or change of lifestyle may see some people needing to relocate immediately. Others may be going through a break-up or a death. Some may need a bigger house sooner than they expected. Others may no longer be able to afford to live in your property.
The reasons a tenant is leaving vary and are often very personal. At the end of the day, if the reason doesn’t reflect your property, it’s of no concern to you. You just need to look at the next steps.
(Credit: Edra Estremera on Unsplash) Most people have personal reasons for breaking a lease
2. Notice of intention to leave
When breaking a lease, tenants are required to give plenty of notice before they vacate the property. This notice is required in writing and can be delivered in person, posted, or mailed. It must include the address of the premise they’re vacating, the date they intend to leave, and their reason for leaving. From there, we know how long we have to find new tenants for your property.
(Credit: Cytonn Photography on Unsplash) Your tenants will have to give you written notice in advance, they can’t just leave you high and dry
3. Fees for breaking the lease
In order to avoid huge expenses for you, the landlord, we make sure we write into the lease preventative measures to deter tenants from breaking a lease early. However, as we’ve mentioned, sometimes this is unavoidable. As this contract is legally binding, it is the responsibility of the tenant to help compensate the property manager/owner for any loss or expense in re-letting the property. These compensations could include;
- Rent paid until another tenant is found
- Break-lease fees, such as agent fees
- Advertising fees to re-let the property
However, we have a duty to minimise the costs that result from a lease break. This means we need to find another tenant as soon as we can.
(Credit: Rawpixel on Pexel) Your tenant will help you mitigate expenses to an extent
4. Finding a new tenant
To find a new tenant as soon as possible, it requires cooperation from you and your departing tenant. The departing tenant will need to be out of the property as soon as they can and have the place tidy and ready for the next person. A tenant breaking the lease will usually want to leave the property soon and will not want to pay any more rent than they have to.
As the landlord, you also need to be understanding of the position you’ve been put in and we ask that in this time you don’t attempt to raise the rent or knockback prospective tenants without sound reason. After all, the last thing we want is for you to lose more money.
(Credit: Rawpixel on Pexel) We will try to find someone to occupy your property as soon as we can
5. Have faith and take a deep breath
We understand this can be a stressful thing to undertake and it often comes completely out of the blue. However, your property manager at Hutton & Hutton will be working hard to make the process as streamlined and simple as we possibly can. You can rest assured knowing your property is in good hands.
(Credit: Oleksander Pidvalnyi on Pexels) Relax, we’re here to make your life easier