Tenant Thursday - Maryland Real Estate Investing Advice. A Weekly Series on handling Tenant issues when investing in Real Estate in Maryland.
You've gotten a tenant for your property, and you've all agreed to a year's lease. Six months into the agreement, the Tenant informs you that they're going to buy a home and want to terminate the lease early. What are your options?
I always inform my tenants right up front that if a lease is broken early, the Tenant remains responsible for the monthly rent payment - no if's, and's or but's. This has helped prevent further issues down the line. But what if you forgot to mention that part, or what if your Tenant didn't get the message? Here are some of your options:
- Stick to the original agreement you and the Tenant made in writing (the lease), and continue to hold the Tenant responsible for the monthly rent (as they contractually agreed). It's always nice when people honor contractual agreements, especially the ones made concerning the roof over your head.
- Hold the Tenant responsible for further rents until you are able to find another suitable Tenant. This protects you against further loss while still providing the Tenant with a way out of the agreement. I can't stress it enough - get it in writing.
- Let the Tenant break the lease. Get it in writing. In many cases, the Tenant's future Lender may require a copy of the lease and especially the agreement to terminate the lease.
Or, you could find some other way to work it out. How would you handle this situation?
Photo credit: http://www.flickr.com/photos/umjanedoan/497345293/
Clients always ask me: Are you on the web?
See for yourself.
Tim McIntyre, GRI, Ellicott City Realtor, Catonsville Realtor
Helping Clients Buy, Sell and Invest in
Howard County, Carroll County and Baltimore County
for more than 25 years.
tmcintyre@cbmove.com 410-480-3555
www.timsellshomes.com
