How should I handle leaving before the end of my lease?
February 16, 2016 6:11 AM   Subscribe

I'm moving from Seattle to Boston and my new lease will start 4/1, but my old one goes until 6/30. Help me figure out the best way to minimize my costs and be a good renter without being a chump.

The lease I'm entering into in Boston is an exceptionally good deal, so it's definitely worth it to have this overlap, but I'd still like to save as much money and hassle as I can.

According to my Seattle lease:
ADMINISTRATIVE FEE FOR EARLY TERMINATION AND REPAYMENT OF CONCESSION: In the event that Resident gives notice to terminate tenancy prior to the expiration of the lease term, Resident must pay an administrative fee for early termination equal to two (2) months rent. Said fee must accompany the "notice to terminate tenancy" in order for the notice to be valid. If Resident should terminate the lease agreement at any time during the initial period of the lease, Resident is liable to repay any concessions they received from the owner, as it is offered on the condition of fulfilling the full term of the lease.
Also, according to Seattle landlord tenant laws:
A tenant who leaves before a lease expires is responsible for paying the rent for the rest of the lease term. However, the landlord must make an effort to re-rent the unit at a reasonable price. If this is not done, the tenant may not be liable for rent beyond a reasonable period of time.
I've consulted a lawyer and since the fee for early termination is a fee that just happens to be equal to two months rent and is not actually rent, I could still be liable for additional rent after paying it. It's not that I get to pay two months rent and will then be free and clear. If I don't give formal notice, the most I can be liable for is the three months remaining on the lease, so it seems like giving notice and paying the fee is a gamble.

The natural option is to sublet. And I will ask my landlord if I can do so, but the lease definitely doesn't make me optimistic:
USE/ASSIGNMENTS OR SUB-LETTING: Resident shall not use the premises for any business purpose regardless of whether such business may be authorized by local law as a legal home occupation. Resident shall not assign this Agreement, sub-let the premises, give accommodations to any roomers or lodgers, or permit the premises to be used for any purpose other than as the primary full time residence for the following named persons (include all minors):

Cogito

Changes in occupancy are not permitted without the prior written approval of Landlord at the Landlord's sole discretion. In the event that Resident contemplates a change in occupants or marital status during the term of this Agreement, no such change shall modify this Agreement unless Landlord consents thereto and prepares a revised rental Agreement, which shall be signed by all Residents. Should Landlord agree, as Landlord's sole option, to any sublet, assignment or change in occupancy, the vacating Resident recognizes that any prepayments or refundable deposits will be assigned to the successor Residents and any refund shall be made solely to the successor residents at the termination of tenancy.
I figure the one piece of leverage I have is that I live in Capitol Hill in a pretty desirable unit, so there's a good chance my rent would go up and the landlord would prefer to have me out sooner to rent to a new tenant at a higher rate.

I'm going to talk to my apartment manager tonight. Any advice about how to negotiate this to minimize my costs but also be a reasonable person and not burn any bridges would be most appreciated.
posted by Cogito to Home & Garden (19 answers total)
 
I've consulted a lawyer and since the fee for early termination is a fee that just happens to be equal to two months rent and is not actually rent, I could still be liable for additional rent after paying it. It's not that I get to pay two months rent and will then be free and clear.

I'm no lawyer, but this does not make sense to me, and is contrary to the two scenarios in which I terminated a lease early. The fee is for TERMINATION of the Lease Agreement. With the Lease Agreement no longer in force, you are not required to pay rent. In one case, the fee was larger than the rent remaining, so I just kept renting the apartment until the end of the lease, and in the other, I terminated the lease, paid the fee, and was not responsible for any further rent. The time I paid the fee was to a fairly casual, non-corporate landlord/owner, so maybe he was just being cool about it?
posted by Rock Steady at 6:32 AM on February 16, 2016 [2 favorites]


It doesn't seem to be saying you can't sublet. It's saying that the landlord has to approve all sublets.

Whether your landlord is likely to approve sublets or not, I don't think we can tell you.
posted by madcaptenor at 6:53 AM on February 16, 2016 [1 favorite]


What's your relationship with your landlord like? Are you a longtime renter? Do you think he/she/they would be willing to modify the lease w/r/t sublets (for a subletter they like) or a lease takeover?
posted by R a c h e l at 6:54 AM on February 16, 2016


Response by poster: I'm really not sure what they'll say re subletting. If they say yes, that's obviously the best option. I'm looking for advice on if they say no.
posted by Cogito at 7:00 AM on February 16, 2016


I wouldn't lead with the subletting. Go in with "hey, I just accepted a job in Boston, and I have to be there by 4/1. I'm not going to leave you in the lurch, but I wanted to see if there's a better solution to this situation than me paying three months' rent on an empty place."

You may still end up on the hook for at least April rent, but in a market as hot as that one it will be very easy for them to have someone in there by May, which is a situation almost any property manager would prefer to dealing with a subletter, but you can keep that in your pocket if you need it.
posted by Lyn Never at 7:57 AM on February 16, 2016 [6 favorites]


Have you looked into Seattle's laws regarding tenancy and subletting? Landlords often put clauses in their leases that aren't necessarily enforceable.
posted by benbenson at 8:10 AM on February 16, 2016 [1 favorite]


Just talk to your landlord! Don't play games.

In California, a landlord can't charge you rent after the place is rented. Most apartments in desirable neighborhoods rent within 1 to 2 weeks as long as the asking rent isn't wildly over-priced.

If you can afford the fee (or have your new employer pay it) just go that route. Confirm that the fee terminates your lease entirely and there will be no more money owed before going that route. Just ask your landlord directly.

Your apartment manager may have their own agenda, so make sure you confirm everything in writing (email) with the actual landlord if possible.

Your unit might need repainting and minor repairs or upgrades after you move out. This usually takes 1 to 3 days if your landlord is organized. Then the vacant unit can be shown and rented. If the rent is reasonable, 2 weeks at most. In other words, once re-rented, most laws prohibit the landlord collecting double rent. That's why there is a two month penalty fee in your lease - your landlord knows the unit will likely be re-rented almost immediately, and it's a way of by-passing landlord tenant law and collecting a small windfall from you.

Anywho. Pay the fee and try to get your new employer to reimburse you, or just let it go. You could try to re-rent the apartment for the landlord so there is no gap in tenancy, but that fee clause will still have to be negotiated AND the manager might not like it because they likely get a commission on units they fill.

2 months is disappointing, but if it's worth it, it's worth it. Be straightforward. Make sure you confirm any agreements or explanations of the lease terms in writing so there are no surprises down the road. Good luck.
posted by jbenben at 9:01 AM on February 16, 2016


Response by poster: There's no employer to reimburse me, this is a personal move.

I'm wondering about what would happen if I tell my landlord that I'm moving out, but don't pay the fee. According to the lease my notice would not be valid, but I could offer to relinquish my claim on the property and let them rent it to someone else, or I could pay rent through the end of the lease while it sits vacant. What do you think they'd do?
posted by Cogito at 10:11 AM on February 16, 2016


Honestly, you're moving cross-country - you have a lot of leverage.

If you give them some reasonable notice, and then leave, they'll probably eat your damage deposit, but they won't come after you thousands of miles away for the rest, particularly since they're likely to actually rent the place really soon.

Consider telling them *today* what has happened. It's quite possible they might have someone ready to move in on April 1, and you won't be out a penny.

A lot of it depends on whether you think they're evil or not...

Good luck!!
posted by lupus_yonderboy at 10:54 AM on February 16, 2016


Upon preview - just want to say that in the digital age, your landlord has a signed contract and they absolutely will come after you for the maximum owed, or rather, they'll sell your contractual debt to a collection agency who absolutely will tack on fees and then sue you for even more money than you originally owed. This isn't $50 on a cell phone bill, this is thousands. These are the debts collection agencies love to pursue because they will win in court and then they will use the court to collect on the judgement. So, no. You have zero leverage. Do not walk out on your lease.
---

Can you please clarify why you don't want to be direct and professional? Is there some reason you can't contact the landlord and tell them you have a career opportunity in another state that starts 4/1, but that your lease goes through 6/30? You can ask them about your options to terminate the lease, or sublet, or find them a qualified tenant to sign a new lease so there is no gap in tenancy?

To be smart, I would go back and forth a bit via email and let them mention the lease termination fee. Then you can ask for clarification and negotiate on that point. If they let you sublet or find a new tenant, you have a great argument not to pay the fee.

You should assume they will sue you for the termination fee or turn it over to collection agency and keep your deposit if you just skipped out on the lease. It would be more headache than it's worth. Irresponsible, too. Immature. Unprofessional.

I don't get why you are trying to be anything less than straightforward about this. Opening the conversation is as simple as:

"Dear Landlord,

I've enjoyed my tenancy at X address. I have a career opportunity in another state that begins 4/1, but my lease at X address goes through 6/30. What are my options for terminating my lease or subletting my unit? Thank you for your attention to this matter.

Regards,

Cogito"
posted by jbenben at 11:10 AM on February 16, 2016 [1 favorite]


but I could offer to relinquish my claim on the property and let them rent it to someone else, or I could pay rent through the end of the lease while it sits vacant. What do you think they'd do?

What do you mean, what do you think they'd do? Those two things are the options you have, legally. And if you talk to them, there's a chance you can facilitate the first option without having to pay to terminate the lease, or have to take the second option.

I think maybe you're assuming your landlord is just drooling to take advantage of you somehow with lease termination fees that are not really worth the battle three months before the end of the lease, and maybe you are a little excited at the idea of outsmarting them, but it is very very likely that they would just like to have a straightforward exchange of understandings with you that doesn't increase the likelihood of you smearing feces on the walls on the way out, or them having to spend a bunch of time and money suing you.

Attempt to make a friendly agreement that is generally beneficial to both sides, and then get that agreement in writing. Don't worry about needing a scheme of some sort until after you've tried that.
posted by Lyn Never at 11:33 AM on February 16, 2016


Response by poster: I'm not moving for a job and I have no intention of doing anything illegal, unprofessional or not straightforward. I do find their tenancy* termination fee to be punitively large (actually, that's what the lawyer said) and considering that it doesn't actually absolve me of rent responsibility (again, legal opinion), I'm wondering if I should just tell them:
Hey, I'm leaving, but I'm not going to pay that fee. If you want to terminate the lease and find someone else to move in, I'll pay rent until you do. Otherwise, I'll pay my normal rent through the end of my lease.
Does that seem reasonable and/or likely to work?

* Note the cause doesn't say the lease is terminated or that my responsibility for paying rent ends.
posted by Cogito at 11:46 AM on February 16, 2016


To my mind, your proposed statement seems unnecessarily combative.

What Lyn Never and others have clearly stated is that you can definitely either pay three months rent for an empty apartment, or pay a fee of two months rent (which is not as ridiculous as you seem to think - I've known people who had to pay 3). The landlord may also be willing to let you off the hook for some part of that three months so that they can find a new renter, maybe increase the rent, and continue to run their business.

I don't know why you're going to a lawyer and to askmefi before just talking to your landlord. The fact that you're moving has no reason to be a secret unless you're also considering an illegal sublet or something like that. Tell them you're moving, ask about your options, and either they offer you something more favorable than the terms of the lease or they say they're sticking to the lease and you're right back here.

Note the cause doesn't say the lease is terminated or that my responsibility for paying rent ends.
Anyone reasonable regular-person-not-a-judge would assume that that clause entailed breaking the lease, especially given that one sentence in the paragraph does refer to lease termination. You haven't mentioned whether your landlord is a big lawyered-up management company or a small mom-and-pop operation, but they almost certainly didn't mean to include such a vague clause and you could almost certainly get something in writing that terminated your lease if you paid that two month fee. That's something you could and would confirm before paying that.
posted by R a c h e l at 12:30 PM on February 16, 2016


Response by poster: They're a fairly big company and I'm pretty confident if they wanted that fee to terminate the lease it would say exactly that. However, whether they will actually enforce that is another question.

Thanks for the advice, everyone.
posted by Cogito at 1:06 PM on February 16, 2016


OK, so the two months' fee is just a fee for... not being in the apartment? That is... not a thing in my experience, but hey, I'm not a lawyer. Assuming that is correct, I think your best bet is to ask them if you can terminate your LEASE early so they can find a new tenant. You could offer to pay the fee, but I wouldn't offer that at first. If they give you a hard time about it, just tell them to forget it, move to Boston without telling them, and mail them the last three months of rent. You could give a friend or neighbor a key in case someone needs to access the place.
posted by Rock Steady at 1:28 PM on February 16, 2016


I agree that I'm not clear what the fee is for if it's not for terminating the lease. Are you thinking this is a fee on top of paying rent for just not living in the apartment? I have never heard of a landlord having a power to police how many nights you sleep in the apartment, and indeed this really doesn't make any sense since plenty of people go on vacation or travel for work without notifying their landlord.

I would send a brief, professional email to the effect of:

I am moving to Boston on April 1st, and as such will be moving out of the apartment on March 31. I am happy to do the legwork on finding a subletter or replacement tenant to take over the last few months of the lease. Please let me know when might be the best time to discuss this option.

And then see what they say. Worst case scenario is you end up paying the last 3 months of rent, but I've typically found landlords are happy to allow a sublet or lease take-over as long as they do not have to do the work to find the new person.
posted by rainbowbrite at 1:38 PM on February 16, 2016 [1 favorite]


I live in Utah at a large apartment complex and also have a 2-month fee for early termination clause in my lease. So it is a thing. I think they have it here because it's a large complex so it gives people an out for moving early but doesn't leave them needing to fill the apartment ASAP (again, large complex) or leave the tenant on the hold for the rest of the term's rent.

I feel like it's clearly stating that you terminate the lease in exchange for the 2-month's equivalent fee. Seeing as it says "Fee for Early Termination." You can't terminate the lease AND still owe rent. I'm honestly not sure why the lawyer thinks you should still owe rent if you are no longer in a lease because it was terminated. At least that's my not-law understanding here.

I do find their tenancy* termination fee to be punitively large (actually, that's what the lawyer said)

The point is that it's punitive so people don't leave leases willy-nilly. Because you signed a contract to be there for X time and pay Y rent. So in order to NOT do that, there has to be some sort of fee or clause otherwise a lease would be pretty meaningless for people who want to leave early. Keep in mind that this clause was in the lease you signed initially. If it wasn't something you wanted to agree to, then don't sign the lease.

So you will either terminate the lease and pay the equivalent to two-months and whatever pro-rated leftover rent for while you're there OR you pay the rest of the lease - UNLESS you or they are able to find a tenant earlier than the end of your lease and the landlord agrees on the new tenant. So for example if you walk out they can't charge you 3 months rent if they find someone after 1 month. However if you pay the fee and end your lease, then when they get someone doesn't matter because you're no longer in a contract with them.

I would not go in as combative as you are. Try to work with them. Keep in mind you may want to NOT burn that bridge so you have a good rental history for your future. Going in basically saying "Yeah, I'm not going to pay you." isn't a good start to a conversation.

I would say something like:

Dear Landlord, I will be moving on [DATE] to a new city. However my current lease doesn't expire until {DATE}. I will be happy to look for a new tenant to cover the end of my lease before I leave. Please let me know what options there are for terminating my lease or finding a new tenant by /DATE/.

It's likely they'll just quote the options in the lease. If so, it's up to you if you want to try to find someone and work with the landlord and a new tenant to take over your lease and get out of it early but risk paying 3 months, OR if you just want to pay a fee and not have to think about it anymore.
posted by Crystalinne at 2:30 PM on February 16, 2016


Best answer: The biggest obstacle is that the legal opinion you got was not accurate (or you misunderstood?) and it really stirred you up.

You could just ask for clarification on the clause from the landlord. In writing. It's their job to clarify their policies.

I think what you are missing is that most state laws don't allow landlords to collect "double" rent - if your unit it rented, they can't collect rent from you until the lease term ends. They may or may not be trying to be sneaky with the fee. Your lawyer is telling you they'll try to collect rent on top of the termination fee, which you don't know is true or false since you have not asked them.

I think you have nothing to lose by asking in writing and getting a response back in writing. Remain polite.

But yes, if they are a big corporation, they will go after you for the fees if you don't otherwise negotiate with them because it's in the contract you signed. You can't just "tell" them what you are doing. You have to open the conversation and find out what their policies are. If there is wiggle room, you can make them an offer and come to a new agreement.

In general, it's better to pay 2 months rent rather than 3 months rent on an apartment you are not living in. You really need to clarify their policy in writing with them and proceed based on what you find out.
posted by jbenben at 2:39 PM on February 16, 2016 [2 favorites]


Response by poster: I just talked to my building manager and it sounds like the legal advice I received was indeed poor (or the way they interpret their own leases is more generous than the letter of them). I have the option to pay the fee (= 2 months rent) or I can just give notice and remain "rent responsible" and hope that they rent the place in less than 2 months after I vacate. I'm going to roll the dice on the latter. With luck, they'll be able to find a new tenant for right after I leave and I'll only have to pay for a few days while they turn the place over.
posted by Cogito at 3:30 PM on February 16, 2016 [2 favorites]


« Older Stomach symptoms instead of respiratory symptoms...   |   $2,004 shipping for a water bottle? Newer »
This thread is closed to new comments.