Lease Breaking Webinar
In this webinar, hosted by Krista Reuther, landlords are guided through the complexities of lease breaks and evictions. The session focuses on helping landlords understand the crucial distinctions between lease breaking and evictions, debunking common myths, and explaining the importance of including a detailed early termination clause in lease agreements.
Presenters
Key Takeaways
- Understanding Lease Termination and Eviction Differences: Recognize the distinction between lease breaking and eviction to manage tenant relations effectively and avoid legal issues.
- Myth Dispelling: Equip yourself with the knowledge to combat common myths about lease agreements to prevent unnecessary litigation.
- Implementing Early Termination Clauses: Learn how to craft and integrate an early termination clause in lease agreements to clearly define the terms under which a lease may be prematurely ended by either party.
- State-Specific Legal Research: Conduct thorough research into state-specific regulations concerning lease breaks to ensure compliance and tailored lease agreements.
- Tenant-Initiated Lease Breaks: Understand scenarios where a tenant can legally terminate a lease without penalty, such as due to military orders under the Service Members Civil Relief Act, or untenable living conditions, to handle these situations with informed consent.
- Landlord Responsibilities: Familiarize yourself with landlord obligations to re-rent after a lease break to mitigate damages financially and maintain a proactive approach in tenant management.
- Educational Resources: Utilize resources like blogs, webinars, and community forums to stay updated on landlord responsibilities and best practices in property management.
- Engagement in Tenant-Landlord Communications: Maintain open and transparent communication with tenants regarding lease terms and conditions, particularly around sensitive issues like lease termination and property maintenance.
Transcript ▼
Krista Reuther: Hello, hello. You are here to learn about lease breaking. This is our guide for landlords. So we will go over the various things you need in your lease, along with some of the rules and regulations that you might not know about that could land you in hot water. Specifically, the key takeaways for today are going to be that you will understand why an eviction is not the same thing as breaking a lease and why we make a distinction between the two. We’ll also download you on all of the commonly speaking myths so that...
Top questions asked by the audience:
What happens if a lease doesn’t have an early termination clause and a tenant decides to terminate their lease early, such as four months into a six-month lease? What actions can the landlord take?
The landlord can take legal action to collect any unpaid rent, but it becomes a bit more challenging. They would typically need to go through small claims court, which has a cap on the monetary amount that varies by state—for example, a cap of $7,500. If the amount the landlord needs to collect is higher, the case would move to county court. Small claims courts are designed to be user-friendly, allowing individuals to represent themselves without an attorney, which helps to simplify the process and reduce costs. So while there is a solution available, it does require stepping through the legal system.
If a tenant leaves the property and breaks the lease but doesn’t pay the owed rent, what should the landlord do?
The landlord should consider taking the matter to small claims court or county court, depending on the amount due. Besides that, keeping meticulous documentation of all interactions, agreements, and financial transactions related to the tenancy is crucial. Good record-keeping will greatly benefit the landlord if they decide to file a claim. A well-documented case can expedite the court’s review and lead to a quicker resolution. Thus, Jeanne’s advice to Maple is to ensure all documentation is in order before filing a case.
Can a landlord modify a pet lease addendum to include an additional pet, such as a chinchilla, even if it’s during the middle of the lease term, especially if the tenant has added an extra pet without giving prior notice?
Yes, a lease addendum can be drawn up and integrated into an existing lease during its term as long as both the landlord and the tenant agree to the changes and sign off on the amended terms. This way, the lease accurately reflects the current situation with the pets.
Is a landlord required to provide a receipt if a tenant pays rent on time via Zelle?
The requirement for landlords to provide receipts for rent payments, including those made through electronic methods like Zelle, can vary based on state laws. While not all states may mandate the issuance of receipts for electronic rent payments, it is generally considered good practice for documentation purposes. Landlords are advised to issue receipts to maintain clear records of all transactions. It’s also recommended to review your specific state’s regulations to determine if there is a legal requirement to provide rent payment receipts in your jurisdiction.
What happens if a tenant refuses to sign a lease addendum? Are they still bound by the new terms of the addendum?
No, if a tenant does not agree to the new terms and refuses to sign the addendum, they cannot be legally held to it. The only option in that scenario is to wait until the lease is up for renewal and then introduce the new provision. If the tenant wishes to continue the tenancy, they will then need to agree to the new terms and sign the lease. So while it’s a bit of a gray area when the tenant doesn’t agree, it highlights the importance of including as many relevant terms as possible when initiating a new lease agreement.
Additional Comment: Indeed, this is why changing terms mid-lease can be challenging. The best approach is to ensure that the initial lease agreement is as comprehensive as possible. While you can introduce updates to a lease with an addendum later, you need mutual agreement, and trying to make changes without that can create friction between the landlord and tenant.
Can the landlord not sell their unit with a tenant still living in it, for example, to another investor?
It is indeed possible for a landlord to sell their property, even with a tenant in it. However, the landlord and the new buyer must honor all current leases until they expire. Tenants are legally safeguarded in this respect. Furthermore, it’s common for buyers to be fully aware that they’re purchasing a property that comes with existing tenants and their leases.
Is it guaranteed that a tenant will pay if there’s a court order, or are there cases where they might not comply?
Unfortunately, it’s not guaranteed that the tenant will have the means to pay the debt, even after a court order. They may lack the necessary funds, assets, or employment from which wages could be garnished to settle the debt, which can result in the debt being uncollectible.
After winning a small claims court case for back rent and damages, what options exist after obtaining a court ruling in your favor?
After winning a court claim, there are usually negotiations or agreements made, possibly leading to a payment plan if the debtor doesn’t have the full amount—say $5,000—readily available. In the case of employed individuals, wage garnishment could be pursued. A valid court order also allows the landlord to employ a collection agency to follow up on the debt.
Landlords have several methods to attempt debt recovery after winning a court claim. The process can be complex, so it’s useful to seek guidance from other landlords, local landlord associations, or those acquainted with the legal system in your area, as their insights can be crucial in navigating these situations effectively.
What should a landlord do if there is a co-applicant who wishes to break the lease, but the other tenants do not want to vacate?
Assuming we’re discussing a co-applicant—someone whose name is on the lease as a tenant—and not a co-signer, it would generally be their responsibility to find a suitable replacement before they exit the lease. This tenant replacement process should be specified in the lease, ideally in an addendum covering scenarios with multiple leaseholders. When all parties have signed the lease, each of them is responsible for fulfilling the lease terms. If a tenant needs to depart, finding another tenant to assume their responsibilities helps to maintain the lease’s integrity and financial obligations.