When Tenants Need to Move During Their Fixed Term Leases
by Wallace Gibson, CPM, GRI
Handling early move-outs from fixed term leases is a NEW wrinkle in the rental and landlord game.
When tenants sign a lease I often don’t think they realize that they are bound by the terms of that lease agreement, including paying the rent and maintaining the property.
When tenants on leases are required to move for job, health or education, I’ve stitched in several options to their lease agreement. They can:
1. Advertise, show and secure qualified applicant(s) and provide me with executed application forms with appropriate credit check fees(s) of $25 per applicant. I will then qualify and prepare the documents/new lease. There is a $400 fee for this lease documentation which should accompany their applications and credit check fees. OR, they may…
2. Authorize me in writing to advertise and show the property for rent. The fee for this service is one-half of one month’s rent– a minimum of $600, and I will qualify and prepare the documents and new lease. OR, they may…
3. Pay 2 FULL months rent–usually $2,000+, and I will retain the monies you have already paid and your security deposit. In order for this option to be utilized, I must know the exact move-out date so that utility service is not interrupted.
If they are being moved by a new employer, the last option is often elected and paid by their new employer in their relocation packet and I advise residents to double check on this option.
Sometimes this puts the lease term out of sequence with our HEAVY rental season of June, July and August; however, I can often re-lease the property for MORE rent which makes my client/property owners very happy!
Wallace Gibson, CPM, GRI, is the owner/broker of Gibson Management Group, Ltd., a full-service property management company offering 45 years of professional property management services for investment property owners in Central Virginia–Charlottesville, Fluvanna, Louisa and Greene counties. Her firm’s website is http://VaHomes4Rent.com and she blogs at www.propertymanagementmaven.com.
American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.