Having a tenant break their lease can be quite stressful for landlords - but it’s not all bad news.
The first thing to note is, that it’s probably also quite a stressful time for the tenants. Chances are they had always planned to see out their full lease term but things can happen and situations can change in people’s lives.
The most common reasons tenants break their lease are:
The Residential Tenancies Act is clear about the rights and responsibilities of tenants and landlords when a tenancy ends before the lease expires.
Although there is no specific “Lease Break” fee outlined in the Act, as a landlord you are entitled to seek compensation for any financial loss you suffer by the tenant ending their lease early. The compensation you may seek is outlined as follows:
Whether your leasing the property yourself or through an agency, it’s vital that all fee’s and charges are clearly outlined in the original lease agreement. This will avoid any uncomfortable situations should a lease break occurs.
The Act also states that as a landlord, you must try and minimise any rental loss the tenant is facing. Here’s a quick guide for you to ensure you don’t have the tenants taking action against you for taking too long to lease the property.
Keep these in mind if your tenants break their lease. You may not be able to make them stay to the end of the lease but understanding your rights and responsibilities will make sure the tenancy ends smoothly and you’re not out of pocket.
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