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When Should a Landlord Break a Rental Lease Agreement?

Signature Team • Aug 30, 2019

Every landlord wants long term tenants, especially property management companies , where we want security and the best return on investment for our owners. But there is a time when you need to allow the tenant to break the lease, or the owner should break the lease, and be ok with finding a new tenant. These instances are important to the financial ROI of the property and to ensure an owner does not dig themselves a deeper hole.

As a property management company in Corona , we talk to our owners about these decisions, to clarify reasons, why breaking a lease makes sense. So let us explore some simple reasons why, in our experience, breaking a lease has made sense to an owner.

Military Deployment – This is a no brainer. If your tenant has to go serve his country, then you should be OK with breaking the lease. It is not always the case where the individual wants to, even though he is being deployed, however, if need be, the tenant should be allowed to terminate the lease. It also may be the law.  Service members Civil Relief Act allows those in the armed forces, National Guard, the National Oceanic and Atmospheric Administration (NOAA), and the U.S. Public Health Service the right to break their leases to start active duty or if their orders take them far away (50 miles is the accepted minimum distance). However, the tenant must first give you a 30-day notice, which is effective 30 days after the date the following rent payment is due. Meaning, a soldier could give you notice on July 17, but would still be responsible for paying August’s rent. After 8/31, though, they’re free to go.

Job Loss – Sometimes they have the means to keep paying the rent. You should talk to your tenant and determine if this is the case. If they can pay 1 month, and you can find another tenant in that time frame, then you will not have a loss at all. We, at times, have to be human, and if someone experiences a tough time, we should be able to assist them within reason. Financially it makes more sense to find a new tenant then to keep a tenant who may struggle to pay rent.

Job Transfer – Everyone is looking for opportunity, and sometimes that will affect an owner or landlord. In many of these cases, the rent will not go unpaid, the owner will not experience a loss if a tenant can be found by the time the tenant moves out to begin a new journey.

Intrusive behavior by owner – All tenants have a right to privacy. If you cannot provide the proper notice before you arrive (24 hours in most cases) this is considered to be intrusive.  Just because you own the property does not give you the right to show up when you want and walk in. Property and privacy rights are granted to tenants when they sign a lease. Many owners are not real estate agents or lawyers and do not know the rights given to tenants when their property is occupied by someone paying rent. Please see your local and state laws, and before it turns into an expensive legal endeavor, consider allowing the tenant to break the lease.

If you ever have any question regarding property management in Corona , Temecula, Murietta. Riverside and the Inland Empire, call us and we will be happy to talk to you 951-520-0058

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