By Revolution Rental Management Sunday, January 22, 2023
Sometimes situations come up where you need to get your house back in the middle of a lease. Perhaps you've been transferred back in state and you need to live there, or maybe there's a cash emergency that's come up, and you need to sell. Whatever the case, our standard lease agreement does allow for early termination, but judges in the states where we do business expect to see some pretty hefty penalties for doing this, which we've included in our lease, so it's not something to do on a whim. Here are the details on how this works if you ever need to do it:
A full two (2) calendar months' notice is required to the tenant; that notice has to come from us, not directly from you, so be sure to read below to fill out the form to request this when you need to do it
You must pay the tenant a penalty of two (2) full months' rent for terminating their lease early
The money for that penalty must be deposited into your account with Revolution before we can give the tenant notice of the early termination; we absolutely have to have that money on hand so that the tenant is paid when they move out; we can't risk that money not being there when it's needed, as that can lead to very expensive litigation
You will have to pay Revolution a $250 Landlord Lease Termination Admin Fee in addition to the above rent
You will also have to pay out the remainder of your contract with Revolution; that means if you are terminating six months into a twelve month lease, you will owe Revolution those remaining six months in management fees, plus any fees in your management agreement to close out your account (this doesn't apply if you are only terminating the lease for that tenant and still having Revolution place a new tenant and continue managing)
All money in your account, including new payments received from the tenant between the notice period and the new termination date, will be placed on a hold until your account is closed out. This is to ensure that even if repair expenses come up, we will still have the necessary money in the account to pay out the liquidated damages to the tenant on move-out. Having this money on hand is absolutely imperative in order to avoid litigation with the tenant, so we cannot make exceptions to this.