I've looked all over the place -- even reading Massachusetts law on the matter -- but I can't find the answer to my question. I'm breaking my lease and moving to a new place at the end of the month, and my landlord (management company, actually) is going to charge me a half-month's broker's fee as part of the penalty for breaking the lease early. But, I'm pretty sure the broker is already charging the next tenant a full month's fee for finding the apartment. Is my management company double-dipping here, and if so, am I legally required to pay this?
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Editor's Response
I would start by looking at the lease to see if there is a liquidated damages clause that talks about such a fee. In any case, if you break the lease, the landlord is entitled to collect actual damages, including costs it actually pays to re-rent the unit. If the landlord has to pay such a fee then, after it goes to court and sues you for damages, it may be entitled to collect that from you. Now, if you are talking about some kind of settlement between you and the landlord to allow you out of the lease, then the option is yours. You can agree to pay the amount if you think it is reasonable, or you can let the landlord collect actual damages, including lost rent, in court. Of course, Massachusetts law requires the landlord to make a good faith effort to re-rent the unit. However, it it takes several months to find a new tenant, you could be on the hook for a large sum. Good luck.
Broker Fee for Nothing?
I am in a similar situation, but not quite.
I broke my lease, but I also found the tenants who have signed a new lease that picks up right when I am leaving (thus there is no loss of rent for the landlord).
She claims I need to pay the broker fee--half month of rent--that she paid to have the lease drawn up and credit checks run on the new tenants. I say that because I handed her the new renters, the fees she paid to the broker are not my problem. I also showed the apartment.
Would it seem reasonable to refuse to pay this broker fee? I might consider giving her a smaller amount, but a half-month of rent is kind of outrageous.
Thoughts?
Thanks
jason.