Blog Layout

What to Do if Your Tenant Wants to Break Their Lease

Appfolio Websites • Oct 23, 2020
water with city skyline behind it

What to Do if Your Tenant Wants to Break Their Lease

Your real estate investments thrive on occupancy. Because of this, it’s incredibly frustrating when tenants want to break a lease before it expires. What should you do in a situation like this? The tendency would be to decline the request and demand that the rest of the lease be paid in full. After all, you have rights as a landlord, and one of those rights is to hold your tenants to finish out their leases. 


But situations like this are also complicated, and it’s important to understand the ins and outs of what to do if your tenants want to break their lease before making a final decision.


Key Decision Factors


It’s always about cost versus benefit when you think about letting a tenant break a lease. Of course, a vacant unit is a cost — you’re paying for that empty space until someone moves in. But there’s also a cost to dealing with an unhappy tenant who is not allowed out of their lease, and there can sometimes be damage to your brand reputation — a bad review on a website, other tenants moving out because of the way you handled a situation, etc.


There are reasons that should compel you to let a tenant out of their lease. These reasons are myriad, but there are a few common ones that should be top of mind at all times, including:

  • Military Service: If your tenant is called on to active duty in the military, there’s little benefit in forcing them to stay. They must be somewhere else to serve the country, and you should let them go. This is one of the potential brand damagers. If it gets out that you’re holding the feet of military personnel to the fire, it’s not going to inspire others to want to rent from you. In addition to these reasons, there are a variety of laws that must be considered. For example, the Service Members Civil Relief Act (SCRA) plays a critical role in lease terminations involving active duty service members. Always be mindful of possible legal implications of the wrong decision.
  • Job Transfers: If someone’s getting moved to a different location for work, it’s hard to make them stay and pay. Do inquire about any programs their company may have for relocation. Sometimes benefits help cover costs associated with breaking a lease.
  • Personal Challenges: If your tenant has lost a job, lost a loved one or dealt with some other extraordinary circumstance, it can feel particularly heartless to keep them in their lease. Again, it's also a risk to your brand if it gets out online or elsewhere that you're forcing people with challenges to stay in their agreements.


Also, consider letting anyone who’s a headache out of their lease early. It can be a surprise benefit if the person who’s always burning up the phone lines with requests for inconsequential repairs and maintenance wants to move out.


Claim Your Rights — to a Point


As a landlord, you have certain rights, as does your tenant. Take advantage of these rights to protect yourself and your investment, but also know where to draw the line. Just because you have a right doesn’t mean you need to exercise it. Many times, the solution that’s best for both parties is somewhere in the middle of a compromise. Many times the practical, amicable approach achieves far greater results than the hardline, no compromise approach. 


Take each situation in stride and make the best possible decision for your brand and your bottom line. If that means claiming a right, so be it. If it means letting someone out of their lease early without dreadful penalty, that can be the best decision, too.


Why Choose Harrisburg Property Management Group? 


Should I let my tenant break the lease? If you find yourself wondering about this, perhaps the better question would be: Should I hire a property management group to make these decisions for me? There are many reasons to allow a tenant to break the lease, and there are just as many reasons to say "no" when they want out. At Harrisburg Property Management Group, we have deep experience in those situations and in making the key decisions they require.


Are you ready for stress-free property ownership in Harrisburg? Call on Harrisburg Property Management Group, and get the expert managers your property deserves. 


Contact us today about property management in Harrisburg, Mechanicsburg, Hershey, and throughout Central PA.


11 Oct, 2023
Routine and random rental property inspections can catch concerns before they arise. Contact us today for a free consultation on property management services.
17 Aug, 2023
Discover how to calculate the gain on rental property sales, minimize capital gains taxes and maximize your return on investment. Learn more here.
By Appfolio Websites 11 May, 2023
Follow this guide to ensure a successful transition between tenants at your rental property. Learn about our services at Harrisburg Property Management.
By Appfolio Websites 12 Apr, 2023
Interested in investing in real estate? Check out this guide to see if it would be a great fit for you! Contact us with any questions!
By Ryan Colquhoun 12 Apr, 2023
Whether you're planning to move or go on a weekend trip like a family vacation, there are plenty of things to do in Hershey, Pennsylvania. Explore ways to adventure, relax, eat, shop and enjoy entertainment in the area. 9 Best Activities in Hershey, Pennsylvania
31 Mar, 2023
What to Do in Mechanicsburg, Pennsylvania Enjoy a small-town feel with all the amenities and attractions of the city in Mechanicsburg. This borough of Cumberland County is a great place to raise a family or live while working in one of the nearby big cities.
By Ryan Colquhoun 21 Feb, 2023
Understanding property management laws and requirements are crucial for landlords and property managers. Enjoy this ultimate guide to property management law today!
11 Oct, 2022
Gone is the hyper-market of last year, but due to the still-heightened demand, many landlords are still getting application and offer rates. Contact us!
what to do if a tenant damages property
01 Dec, 2021
Property damage is a concern for landlords. What happens when a tenant damages property? How can property damage be prevented? Read on to learn more.
16 Aug, 2021
If you are buying your first rental property, make sure you have considered everything. Read for tips on buying and managing your rental in central PA.
More Posts
Share by: