Tenant Moves Out Early, What Can You Do?
You counted on your tenants being there, helping you pay that mortgage or giving you the income you need for each of those remaining months in the lease.
You've now got to deal with a vacancy and possibly another real estate commission to pay out. What can you do if your tenants move out early?
Good news! June 10th, 2008 the State of Florida enacted the Early Lease Termination Bill. You can now have your tenants sign an addendum which gives them a choice: pay liquidated damages or a termination fee.
First, understand that without this addendum/clause in the lease... you as the Landlord have three options:
1- retake the property and terminate all further tenant liability
2- retake the property, re-lease to new tenant, and hold previous tenant liable for the rent not paid in-between those tenancies or
3- sue the tenant for the lost rent!
If you take advantage of the new HB 1489 Law... it gives you the benefit that if the tenant skips (moves out early), you can charge liquidated damages. In addition, it is beneficial to the tenant because (if he gives the required notice) he can pay the termination fee without actually considering the move-out a breach of the lease/contract.
What can you charge exactly?
1- liquidated damages or the termination fee (not to exceed 2 month's rent)
2- rent through the end of the month when you retake possession
3- any additional monies owed as per the lease: ie utilities
If you'd like to add an addendum to your lease to include this early termination remedy... you must use wording similar to the following:
_______ I agree, as per the Lease Agreement dated ________, between ____________ (Landlord) and ______________ (Tenant) to pay $___________ (an amount not to exceed two month's rent) as liquidated damages or an early termination fee, in the event I elect to terminate the rental agreement. Landlord then waives the right to seek additional rent beyond the month in which the landlord takes possession.
_______ I do not agree to liquidated damages or an early termination fee. I understand that Landlord may seek damages as provided by the law.
Landlords do not HAVE to use this new Early Termination remedy. The use of it will be determined in large part by the Landlord and the rental market as it is or is projected to be during the tenancy.
For more information about these Laws visit:
Florida House Bill 1489, June 2008 [Early Termination]
Florida Statute 83.595 [Early Termination Remedy]
Information found on www.realestateservices-miami.com should not be relied upon and is not a substitute for advice from an attorney licensed in your county, jurisdiction or state. It is always advisable to seek the advice of an attorney for all matters relating to Landlord Tenant Law and real estate. To locate an attorney visit
Attorneypages.com.
|
