I am leaving my apartment one month early. I gave my landlord 90+ days notice of my intention to leave, and I found them a new tenant who has already signed a lease to begin the day after I move out. My question regards a clause in my lease that says that I can terminate the lease early as long as I pay one month's rent "for liquidated damages." Since there are no damages that I can think of, I guess this would be acting as an early move-out penalty. Do I owe them this money? My landlord has indicated his willingness to sue me if I don't pay this, and thinks I am contractually obligated to pay it, regardless of whether there is a new tenant taking over the apartment or not.
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The Editor, Mark Bernardin, is an attorney living in MA. Please send your suggestions or comments to: TheEditor@malawforum.com
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The answers and information provided on this site are for informational purposes only and are NOT substitutes for professional legal advice. Before making legal decisions, you should discuss your specific circumstances with an attorney.
Liquidated damages clause in residential lease
Unlike in a commercial lease, where a liquidated damages clause may be enforceable, I believe that a residential landlord would have a difficult time convincing a MA judge to enforce a liquidated damages clause, especially in a situation, like yours, where the landlord has suffered no actual damages. Massachusetts landlords have a legal obligation to make reasonable efforts to find a new tenant and help mitigate damages.
LL demands "early termination charge"
I'm leaving my apartment 2.5 months before my lease ends due to a job in a different city.
My landlord has stated that he believes the apartment can be re-rented in 1-2 weeks after I leave (it's a 420 unit building that is 97% leased, with a dedicated listing website)
My lease contains a provision for early termination that charges a 1 month "Early Termination Charge".
My view of the situation:
- I can vacate the apartment, and ask the landlord to make reasonable efforts to find a tenant without penalty.
- I am responsible for any rent while the apartment sits empty, but when a new tenant is found, I can stop paying rent.
- Under this scenario, I am NOT terminating the lease early, and the "early termination" clause in my lease does NOT apply, because I would be prepared to pay the additional 2.5 months of my lease if no tenant is found.
My landlord's view:
- I will be "breaking my lease" because I'm moving out early
- I will need to pay the 1 month "early termination charge" even if he finds another tenant right away
- He has also stated that he will NOT show the apartment unless I pay the 1 month charge.
- He has stated my only other option is to pay the remaining lease in full, and let the apartment sit empty, as he will not list the apartment unless I pay the 1 month charge.
My questions:
- Which of the 2 views is correct?
- There is clearly a defined "early termination" clause in my lease, but is it always triggered by my moving out even if I am willing to continue to pay rent if no tenant is found?
- If I don't pay the 1 month charge, can he refuse to make reasonable efforts to find another tenant (i.e. refuse to list the apartment on the website)?
Thank you in advance!
Early termination in MA
This should be very simple. You break the lease and move out. The landlord then reclaims the unit, cleans it, and makes good faith efforts to rent the unit. You do not have to pay an early termination charge, but you might want to if the landlord waives any additional amount you might owe him (in writing). The landlord cannot sit on his hands and collect rent for two and a half months. He needs to make a good faith effort to rent the unit and mitigate damages. If he does, and it actually takes him 2 or 3 months to find a suitable tenant, then you owe rent for the rest of the lease period. It is up to a judge at housing or district court to decide if the landlord did, in fact, make a reasonable effort to rent the unit.
Early termination Charge
Dear Tenant,
I think admin's suggestion is good. I'm a landlord so the other things to consider is your security deposit, are you also liable for the costs asscociated with re-renting under the lease - changing the locks, doing background and credit checks on applicants, carpet cleaning or repair, painting, etc. Your time in small claims or housing court especially if you have relocated.
AJ