I am a landlord in Virginia and my tenants need to end a 12 month lease after just 5 months?

Question

I know I'm not legally required to do this but I would like to allow them to move out early. If they agree to pay one months rent in liquidated damages (which is an estimate of what it will cost me to get the house re-rented while it's vacant due to them breaching the contract).

The original lease did not have a liquidated damages clause in it (there was no way for them to end the lease early), so I'd like to add this. Does anyone know where I can find an example of what this contract should look like? What happens if they fail to move out by the date specified? I

Basically it should say:
1) We're ending the lease on X date
2) Tenant has agreed to pay $X in liquidated damages, which is due at the time of signing the contract to end the lease early.

What am I missing? How do I word this? I am planning to return their security deposit after they move out and I am able to do a final walkthrough of the house. I want to make sure that what I do is legal and fair.

Thanks
-Tom

Also I should note that I ran a credit check on these tenants before they signed and they both have good credit and good income relative to the monthly rent. They also owned their own house before this so I was not able to check references from other landlords.

Answer 1

Keep it simple Tom, Just write up something to the effect of:

Due to unforseen circumstances the tenants are unable to complete the terms of the lenght of lease, therefore in consideration of the impact this will have on the landlord it is agreed by all parties that the sum of $xxxx.xx is sufficient to defray any losses on his part. The new end date for this lease is xx/xx/07

Signed and dated by all parties.

BTW you wish you be fair, it sounds as if you are beng quite fair. You know the best landlord is a nice landlord. You will be treated best if you continue to be a human being but at the same time checking referances and credit histories.

Someone said you sould keep thier security deposit. Don't do that unless they caused harm to you property.

Answer 2

You are a nice landlord, there should be more like you.

What you are proposing is known as an "Addendum" to the contract (lease).

It will need to be noted attached to the original lease and have the signatures of both you and your tenants to be valid. If there is a entire contract clause in the lease, I would add the note about the addendum right there and have your tenants (and you) initial it, then sign the Addendum.

I assume that the security deposit issue is already addressed in your lease, so don't add confusion by re-addressing it in your Addendum.

Wording such as: "This Addendum to Lease dated xx-xx-xx, is being issued on the XX day of Month, Year.

I, Tom X, the legal owner and landlord of the real property located at, XXX Street, City, State, do hereby offer the following Addendum to the TENANTS NAMES, the legal tenants of the above named address.

Landlord agrees to early termination of original lease providing the following stipulations are met.

1. Any owed rents are current and paid in full by the tenants.
2. The tenants, in exchange for early termination of the lease, agree to vacate the premises and present the above mentioned apartment ready to re-lease by XX-XX-XXXX.
3. The tenants agree to pay $XXX, the amount equal to one additional month's rent as consideration for the completion of the lease. This money must be paid by XX-XX-XXXX.
4. The security deposit will be returned as outlined in the original lease if all the original contingencies of the lease and this addendum have been met.

Signed on XX-XX-XXXX

Have all named tenants sign with witnesses or a notary if you think its necessary.

I'm sure a real lawyer could draw up an addendum for a few bucks, but the above might do without you incurring any other expenses other than what you are losing by having to find new tenants.

I'm not a lawyer but I do have practical business experience in addendums and altering contracts. I have never met a contract I didn't alter.

Answer 3

You sound like a nice guy. Keep it simple, put down just what you said, and get it signed. You don't need to make some big formal legalese contract.

And you've got them by the cojones anyway, since if they don't sign and pay you your liquidated damages, you can charge them all the remaining rent.

And breaking the lease does NOT give you rights to the damage deposit, so it's good you are planning on returning it assuming property is in good condition after your walkthrough.

Answer 4

The tenant has signed a legal lease for a length of 12 months. They would like to be released from the lease due to these circumstances. (And I would spell them out specifically.) I am agreeing to releasing them in exchange for 1 month's rent for the time that the space will be vacant while it is being prepared for new tenants. They have agreed to totally vacate the property and leave it in broom condition by this date (write the date), or this agreement becomes null and void and the original lease remains in effect.

I think it would be worth it to have a lawyer check it over. Make sure the copies are signed in from of a legal witness and that they stamp the copies with their seal.

Answer 5

I am no lawyer but the lease breaking only has penalties for the one side that chooses to break it, in this case the tenants. I would word it just as you have and add that both parties have agreed to this arrangement. Have them sign it and do so yourself with each getting a copy. I can't see how there could be any problem unless you cause one after the fact. If everyone is in agreement a handshake could be sufficient but I would get it on paper to protect all concerned. I would not spend any money on legal assistance, just type it as agreed to and sign it with a witness present. It should be fine.

Answer 6

Well if you go to these people in a very lovely and polite manner and explain certain issues to them, for example you would like to renovate the house thoroughly which is going to take some time, and agree to give them back the down payment and time to find some where they may consider breaking their lease, but remember you have to be nice to these people. I wish you luck and your wishes,

Answer 7

legally you can force them to pay the entire amount for the rest of their months = so therefore asking them to pay such and such shouldnt be a problem. You canalso refuse to return the S/D because they are breaking contract.

Answer 8

I would think that if you have had a good enough relationship with your tenant that you are willing to do this, why not just do it verbally? If not that is what your attorney is for.