can my landlord sue me?

Question

I have signed a contract for 5 months. My business is not going well and I am trying to leave earlier considering the fact that I might lose my security deposit. My landlord says that she can sue us and ruin our credit. There is no such thing written in our contract. Can she really sue us?

Answer 1

nowadays ppl can be sued for any silly thing so unfortunately I think so

Answer 2

Are you concerned about losing the deposit if you left earlier? Your question is unclear. The only way she can ruin your credit is if she reports the activity to the credit bureau and that is not likely. A suit is a suit. A judgement wouldn't help your credit but I don't know about ruining it. Just ask Donald trump!

I take it you are a start up? Why in the world would you lease a place without having the cash flow to survive more than 5 months? That just doesn't make any kind of sense.

Your options are limited. If she will agreed and some states actually require that you attempt to mitigate the landlords loss by finding a suitable tenant to replace you. That would be your best option.

If your state allows it, see if she would agree to release you from the contract for the amount of the security deposit. That way you are limiting your lose if the deposit is sufficient enough. Depending on the lease you sign you may be subject to liquidated damages over and above any deposits. You need to read the document carefully.

Answer 3

Unfortunately, you can be sued for anything. Whether or not your landlord can win is another question. I really don't understand what IS in your contract. If there's not an agreement for you to stay a minimum of five months, then what is in the contract?

If you did sign a document stating that you would rent for at least five months, then she can sue you, and she will win. Her only obligation is to TRY to rent the property. If she can not find a renter, you are on the hook for all of the rent.

You are probably also required to leave the property in the condition in which you found it. If you have made changes, she can also sue you for the cost of putting things back the way you found them.

A lease/contract protects both sides. What if your business were going well, and the landlord wanted to boot you out because she found someone that would pay more rent? Wouldn't you want to sue her?

Answer 4

The only thing a landlord can do is sue you for "Breach of Contract". You can loose your deposit and if taken to court the judge can make you pay in full the amount still owed for fulfillment of the contract... Most landlords won't spend the money in court to do that because it can get expensive, but trying to resolve this between your landlord is probably the first step and then if that doesn't work, let them take you to court.. If it is certain reasons like you don't have money to pay rent then the judge will probably release you from liability with the contract and just order you to loose your deposit and case closed...

Hope this helps, simular situation happened to me... The final outcome was me just loosing my deposit and me being on my way... Nothing else!!!!

Answer 5

Obviously first of all - if you really want good info... talk to a lawyer about what the law is in your area.

Secondly (and I am NOT a lawyer so take that into consideration)... You signed a contract. That contract says that you will pay for five months of use of that person's building. Depending on what the termination clause is, there may be a way for you to get out of your obligation, but it doesn't sound that way. Losing your security deposit is a whole lot better than being sued. Trust me.

Again - I highly recommend seeking counsel on this case.
Good luck.

Answer 6

There are was of breaking your lease without breaking the law...

Your reason for wanting to get out of the lease will factor into the method you choose. A tenant generally wants out of a lease because:

Business is growing and the facility is too small
Business is bad and the rent payment is too high or you simply want to close up shop
You are dissatisfied with the service of the landlord or how the terms of the lease are being handled
If you need to move to a larger space or a better location, one option is to sublease the space to someone else. You must first make sure subletting is allowed in the terms of the lease. Most often a sublet is allowed with the approval of the landlord. You will still be obligated to the landlord if the subtenant defaults on payment.

Another option, if business is going well, is to buy out the remaining portion of the lease with a lump sum payment. If the landlord will be able to rent the space without much difficulty, your buyout price will be far less than the amount remaining on the lease. This payment may be worthwhile if you are moving to a bigger space or better location.

If business is going poorly, you can also look to sublet, or find a new tenant with whom the landlord can negotiate a new lease for more money. Talk to your landlord about the situation. Landlords usually do not benefit from having a tenant who might be headed toward bankruptcy, so they may allow you to rent out the space, or a portion thereof, while actively looking to find a new tenant.

If you are dissatisfied with the manner in which the landlord is meeting the terms as outlined in the initial lease, re-read your lease carefully and see if any terms have been violated that allow you to break the lease. Read the section on how all disputes will be handled. Do you have sufficient grounds to get out of the lease? If, for example, the lease states that you will have the only jewelry store in the mall, but a department store opens directly across from you, selling jewelry in one of their many departments, does that violate the lease? Your business is being affected. If you are paying a percentage of your business to the landlord, then this drop in business is also affecting his or her share of your rent. Therefore, the landlord may try to work out a compromise solution, which might mean relocating your shop or talking with the department store about moving their jewelry department farther away from your store.

You should first make an effort to work out the situation with your landlord rather than having to resort to legal action.

Legal counsel can advise on situations whereby you are looking to get out of a lease because you are dissatisfied with how the terms are being handled. Click here for a sample checklist for office leases. http://www.allbusiness.com/forms/leases/199.html

Answer 7

your lease is for 5 months... so your are obligated by that signed contract to rent the space for 5 months. what your landlord means is that she is guaranteed 5 months worth of rent bc you have a signed contract. If you leave early you will definately lose your security deposit for the unpaid for one month thats left on the lease. if you have more then one month left on the lease... say you have been renting for 3 months and owe 2 more months... your landlord can take you to small claimes court and sue you for one more month and keep your security deposit towards the other month still owed.

Answer 8

You signed the contract. That was to protect your landlord And you for 5 months. Tha meant your landlord could not boot you for 5 months and that you would not ditch your landlord, She has every right to sue you.

Answer 9

A breach of contract is an implicit reason to sue anyone. You are responsible for 5 months of payments

Answer 10

As an added bonus...

Previous post may be incorrect. If you total sum is less than $5000, they can take you to small claims, it only cost about $25-$50 to file a claim. And you self represent. So it isn't that expensive to come after you.

Make every effort to do the right thing.

Answer 11

If you signed a contract, you are bound to obey it or yes, she can sue you for breach of contract. And it may be difficult to get someone else to rent to you.