Lease buyout?

How do you handle tenants who want to break the lease? We have approached this on a case-by-case basis, but now realize we need a policy. In Colorado, it is my understanding that the tenant is required to pay the rent until the house is rented, but the landlord is not required to pursue a new renter. We are not managing a lot of properties, and we want to be accomodating. At the same time, changing renters is costly.

Do you offer a lease buyout option and what is your policy?

Is your policy spelled out in your lease?

Why are they breaking the lease?

How long will it take to lease it?

I have charged the loss of rent+costs associated with re-leasing the property.
I have also never been successful at collecting more then just the deposit.
My lease breakers have always left in the middle of the night before I started eviction. I was very glad they didn’t damage the property worse than they did.
I have been able to re-lease properties in under a month usually two weeks.

Here is the part of my lease dealing with default:

A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law. Landlord urges Tenant to review Chapter 92 of the Property Code, which deals with residential tenancies.
B. If Tenant fails to timely pay all amounts due under this lease or otherwise fails to comply with this lease, Tenant will be in default and:

(1) Landlord may terminate Tenant’s right to occupy the Premises by providing Tenant with at least 5 day(s) written notice to vacate;

(2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be accelerated without notice or demand;

(3) Landlord may exercise Landlord’s lien under Paragraph 21 and any other rights under this Lease or the Property Code; and

(4) Tenant will be liable for:

(a) any lost rent;

(b) Landlord’s cost of re-letting the Premises including but not limited to all fees and charges, necessary to re-let;

(c) repairs to the Premises for use beyond normal wear and tear;

(d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s fees, court costs, costs of service, witness fees, and prejudgment interest;

(e) all Landlord’s costs associated with collection of amounts due under this Lease, including but not limited to collection fees, late charges, and returned check charges; and

(f) any other recovery to which Landlord may be entitled by law.

C. Notice to vacate under Paragraph 25B(1) may be by any means permitted by §24.005, Property Code.
D. Landlord and Tenant each have a duty to mitigate damages.
26. EARLY TERMINATION: The term of the Lease begins on the Commencement Date and ends on the Expiration date unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the parties; or (iii) terminated earlier under Paragraph 25, by agreement of the parties, applicable law, or this Paragraph 26.
A. Military, Family Violence, Sexual Offenses: Tenants may have special statutory rights to terminate the Lease early in certain situations involving family violence, sexual offenses or a military deployment or transfer.

(1) Military: If Tenant is or becomes a service member or a dependent of a service member, Tenant
may terminate this lease by delivering to Landlord a written notice of termination and a copy of an appropriate government document providing evidence of: (a) entrance into military service; (b) military orders for a permanent change of station (PCS); or (c) military orders to deploy with a military unit for not less than 90 days. Termination is effective on the 30th day after the first date on which the next rental payment is due after the date on which the notice is delivered. Section 92.017 Property Code governs the rights and obligations of the parties under this paragraph.
(2) Family Violence: Tenant may terminate this lease if Tenant obtains and provides Landlord with a copy of a court order described under §92.016, Property Code protecting Tenant or an occupant from family violence committed by a cotenant or occupant of the Premises. Section 92.016, Property Code governs the rights and obligations of the parties under this Paragraph.

(3) Sex Offenses: If this Lease is executed after January 1, 2010, Tenant may terminate this lease if Tenant is a victim of sexual assault or a parent or guardian of a victim of sexual assault under Section 22.011, Penal Code, aggravated sexual assault under Section 22.021, Penal Code, or continuous sexual abuse of a child under Section 21.02, Penal Code, that takes place during the preceding six-month period on the Premises or at any dwelling on the Premises. Section 92.0161, Property Code, governs the rights and obligations of the parties under this paragraph.

B. Assignment and Subletting:

(1) Tenant may not assign this lease or sublet the Premises without Landlord’s written consent.

(2) If Tenant requests an early termination of this lease under this Paragraph 26B, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant.

(3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a tenant and must sign: (a) a new lease with terms not less favorable to Landlord than this Lease or otherwise acceptable to Landlord; (b) a sublease with terms approved by Landlord; or (c) an assignment of this lease in a form approved by Landlord.

(4) At the time Landlord agrees to permit an assignee, subtenant, or replacement tenant to occupy the Premises, Tenant will pay Landlord:

(a) if Tenant obtains the assignee, subtenant, or replacement tenant:
• (i) $ 100.00_______
• (ii) _____ % of one’s month rent that the assignee, subtenant, or replacement tenant is to pay.

(b) if Landlord procures the assignee, subtenant, or replacement tenant:
• (i) $ 250.00_________
• (ii) _____ % of one’s month rent that the assignee, subtenant, or replacement tenant is to pay.

(5) Unless expressly stated otherwise in an assignment or sublease, Tenant will not be released from Tenant’s obligations under this Lease because of an assignment or sublease. An assignment of this lease or a sublease of this lease without Landlord’s written consent is voidable by Landlord.

Thank you for the information. That was helpful. The difficult part is addessing the hassle factor that is difficult to put a value on.