Charging a reletting (early termination) fee - Landlord Forum thread 318716

Charging a reletting (early termination) fee by Anonymous (Texas) on May 13, 2014 @14:19

Is it legal (or common practice) to charge a reletting fee if: a) the tenant gave a few months' notice and b) the new tenant moved in the same day the previous tenant moved out and c) the new tenant was found with no financial cost to the landlord? IMO, he's basically making double the rent off the property this month at our expense. Thank you.

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Re: Charging a reletting (early termination) fee by Garry (Iowa) on May 13, 2014 @14:52	[ Reply ]

A landlord cannot charge 2 different tenants rent for the same month in the same unit. So if you moved out early, say by May 1 , but the LL is charging you for the full month of May, then he cannot charge anyone else for May's rent for that unit. If he is, then he cannot list on your sec. dep. statement, an amount you owe him for May's rent. It does not matter how he found another T, or how much it cost him to find one.

A fee is not rent; rent is rent. by Bob on May 13, 2014 @16:37	[ Reply ]

Maybe, depends how the termination document reads. If I charge you a FEE to break the lease, and it is listed as a FEE and NOT as rent in the document, I can do it. That money is not rent, but a fee you paid to end the lease, regardless of when the next person started. When I have done this, I have always changed a number NOT equal to the rent, so there is no confusion. If the termination agreement says you will pay rent for May, and another person pays rent for May, then you will certainly have an argument. If it is poorly worded, you would probably also have a case, assuming the Landlord wrote it. So what does it say?

Legal fees?

Re: Charging a reletting (early termination) fee by Anonymous on May 13, 2014 @16:42	[ Reply ]

What part of breach of contract do you not understand. I charge my tenants a 2 1/2 early termination fee. If the landlord wanted you to move before the lease was up, you would be raising holy hell. Grow up and fulfill your responsibility.

Re: Charging a reletting (early termination) fee

Re: Charging a reletting (early termination) fee by Original Poster (Texas) on May 13, 2014 @17:22	[ Reply ]

Sorry....a bit of trouble with internet connection and didn't post this to the main thread, and only as a reply. Thanks everyone for responding. The fee was equal to the rent amount, if that makes a difference. The wording on the lease (that the landlord is citing) says, "At time landlord permits an assignee, subtenant or replacement tenant to occupy the Property, Tenant will pay landlord: if Tenant procures: 70% of one month's rent that the assingee, subtenant or replacement tenant is to pay.... if Landlord procures: 100% of one month's rent...." But without any financial damages to the landlord, is this legal to assess? As far as the breach of contract question, the second part of this, which I didn't state earlier, was that my wife's mother showed the apartment to the replacement tenant because the landlord wasn't going to be there. I told the landlord no fee could be assessed because there isn't any language in the contract about a penalty if both the tenant and landlord procure the new tenant together. Furthermore, he said he'd "work with us" (we have this in writing) on ending the lease. Kind of a secondary question, but if you would also give your opinions on the idea that both parties worked to procure the tenant, I'd really appreciate it as well. Thanks.

Re: Charging a reletting (early termination) fee by OK-LL on May 14, 2014 @13:44	[ Reply ]

Yes it is legal to charge a reletting fee. Typically the property manager is paid a "new tenant fee" each and every time he has to seek a new tenant for the owner's property; this fee pays for his time and effort in locating a new tenant. The reletting fee charged to the breaching tneant reimburses the owner for the PMs fee incurred due to you breaking the lease, among other things. It may also cover the cost of utilities which must be in service when prospects are viewing the property, advertising, and other costs of reletting the property.

Re: Charging a reletting (early termination) fee