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What if tenants leave early?

Written by: Mary-Anne Bowring 14/02/2024
  247       0
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Understanding Tenant Departures

Tenants may need to leave a property before the end of their tenancy agreement for various reasons. As a landlord, it’s important to understand your options and handle the situation effectively.

The Importance of Communication

While tenancy contracts are legally binding, negotiation is often a more practical and cost-effective approach than litigation. Good communication with tenants can help resolve issues amicably.

Common Reasons Tenants Leave Early

Tenants usually want to leave early for one of two reasons:

  • Their circumstances have changed (e.g., job relocation, financial issues).
  • They are dissatisfied with the property or service provided.

In some cases, they may believe they have valid reasons to break the contract and request a deposit refund.

Exploring Compensation Claims

If a tenant’s circumstances improve, negotiating a settlement may be a practical option. You could:

  • Ask the tenant to contribute towards finding a replacement.
  • Request a break fee (equivalent to 2–3 months' rent) to cover costs.
  • Find a mutual agreement without resorting to legal action.

When Accepting Losses Might Be the Best Option

If a tenant genuinely cannot pay, legal action may not be worthwhile. Even with a court judgment in your favor, collecting unpaid rent can be difficult if the tenant lacks the financial means.

Moving Forward

Sometimes, the best course of action is to accept the situation and move on. Focusing on finding new tenants quickly and minimizing financial loss can be a more effective strategy than prolonged disputes. Would you like any refinements?



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