As a landlord, how can I break the lease I can no longer afford...

[cammiem]

What is the name of your state (only U.S. law)? Oregon

The lease on our Oregon property does not expire until June, 2014 and because I am currently unemployed, I can no longer afford the $540 out of pocket difference between rent and the mortgage payment. Is there a legal way I can break the lease?

Side note: One of the tenants on the lease filed for bankruptcy about 6 months after moving in and the lease states this about bankruptcy: In the event of bankruptcy or state insolvency proceeding being filed against the Resident, this heirs, or assign, at the option of Owner, his agent, heirs, or assigns, and immediately declare this contract null and void, and to once resume possession of the premises. No judicial officer shall ever have any rights, title, or interest in or to the above-described property by virtue of this agreement.

Any help with this would be so appreciated!

 

[Ohiogal]

What is the name of your state (only U.S. law)? Oregon

The lease on our Oregon property does not expire until June, 2014 and because I am currently unemployed, I can no longer afford the $540 out of pocket difference between rent and the mortgage payment. Is there a legal way I can break the lease?

Side note: One of the tenants on the lease filed for bankruptcy about 6 months after moving in and the lease states this about bankruptcy: In the event of bankruptcy or state insolvency proceeding being filed against the Resident, this heirs, or assign, at the option of Owner, his agent, heirs, or assigns, and immediately declare this contract null and void, and to once resume possession of the premises. No judicial officer shall ever have any rights, title, or interest in or to the above-described property by virtue of this agreement.

Any help with this would be so appreciated!

And you think that portion of the lease is enforceable? Are you going to move into the rental house? How long have they lived there? Since June 2013? If so then that is not 6 months after moving in. When was the lease signed?

 

[cammiem]

And you think that portion of the lease is enforceable? Are you going to move into the rental house? How long have they lived there? Since June 2013? If so then that is not 6 months after moving in. When was the lease signed?

No we don't plan to move into the house - we live in Texas and the property is in Oregon where we use to live. We signed a 2 year lease in June of 1012. I'm not sure if the bankruptcy clause is enforceable, just thought possibly a way out.

Thanks so much for your time!

 

[Zigner]

What do you hope to accomplish? Is it your intention to kick these folks out and then find a tenant that will pay more?

 

[cammiem]

What do you hope to accomplish? Is it your intention to kick these folks out and then find a tenant that will pay more?

My intent is to sell the house and make about 30k so I can provide for my family during my unemployment...after 11 months the savings account is now dry. We are in the hole 85K with this house for the record.

 

[Silverplum]

My intent is to sell the house and make about 30k so I can provide for my family during my unemployment...after 11 months the savings account is now dry. We are in the hole 85K with this house for the record.

Why do you think you have to toss the tenant to sell the house?

 

[cammiem]

Why do you think you have to toss the tenant to sell the house?

Because the vast majority of people like to live in a house they purchase.

 

[sandyclaus]

Because the vast majority of people like to live in a house they purchase.

Of course, there are also a vast majority of people who buy houses as rental properties for the extra income.

The lease is an encumbrance on the property. If you sell the house (even with the tenants still living there), the lease will transfer intact with the ownership to the the new owner. You get your money from the sale, and you don't have to break the lease (and suffer the potential legal consequences of doing so).

 

[Zigner]

Of course, there are also a vast majority of people who buy houses as rental properties for the extra income.

The lease is an encumbrance on the property. If you sell the house (even with the tenants still living there), the lease will transfer intact with the ownership to the the new owner. You get your money from the sale, and you don't have to break the lease (and suffer the potential legal consequences of doing so).

The problem is that the OP has a tenant in paying considerably less than the mortgage payment. If the OP sells the house for what he thinks he can sell it for, then the mortgage payment for the subsequent buyer will likely be higher than what the tenant is currently paying. So, the lease becomes a stumbling block.

The OP wishes to place his financial missteps at the feet of his tenant.

 

[cammiem]

The problem is that the OP has a tenant in paying considerably less than the mortgage payment. If the OP sells the house for what he thinks he can sell it for, then the mortgage payment for the subsequent buyer will likely be higher than what the tenant is currently paying. So, the lease becomes a stumbling block.

The OP wishes to place his financial missteps at the feet of his tenant.

Really, is this necessary? My situation has absolutely nothing to do with 'financial missteps'; it had to do with an inflated housing market and a bout with colon cancer. Grow-up; I feel sorry for people like you who feel the need to cast stones anonymously behind their computer screen.

 

[Silverplum]

Really, is this necessary? My situation has absolutely nothing to do with 'financial missteps'; it had to do with an inflated housing market and a bout with colon cancer. Grow-up; I feel sorry for people like you who feel the need to cast stones anonymously behind their computer screen.

Perhaps you would like to pay an attorney.

 

[Zigner]

Really, is this necessary? My situation has absolutely nothing to do with 'financial missteps'; it had to do with an inflated housing market and a bout with colon cancer. Grow-up; I feel sorry for people like you who feel the need to cast stones anonymously behind their computer screen.

Why would you sign a year long lease in which you lose $6,480.00 over the year? THAT was the financial misstep I spoke of.

 

[Searchertwin]

What is the name of your state (only U.S. law)? Oregon

The lease on our Oregon property does not expire until June, 2014 and because I am currently unemployed, I can no longer afford the $540 out of pocket difference between rent and the mortgage payment. Is there a legal way I can break the lease?

Side note: One of the tenants on the lease filed for bankruptcy about 6 months after moving in and the lease states this about bankruptcy: In the event of bankruptcy or state insolvency proceeding being filed against the Resident, this heirs, or assign, at the option of Owner, his agent, heirs, or assigns, and immediately declare this contract null and void, and to once resume possession of the premises. No judicial officer shall ever have any rights, title, or interest in or to the above-described property by virtue of this agreement.

Any help with this would be so appreciated!

No, their is no legal way to break the lease. What the others are missing is that since you are unemployed that it is hard to pay for rent where you are now plus a part of the mortgage payment since one of the tenants is not paying their share. I am assuming that their is more than one since you stated, "One of the tenants." The others are paying. Which I believe would make that clause be thrown out the window for the other tenants listed on the lease. You would still have the problem.

If you believe you can get more rent, offer to buy them out of their lease. Be reasonable. They have the burden of moving again and trouble finding another place.
Plus I would give back their deposit. All they can say is "no".

 

[Ohiogal]

Really, is this necessary? My situation has absolutely nothing to do with 'financial missteps'; it had to do with an inflated housing market and a bout with colon cancer. Grow-up; I feel sorry for people like you who feel the need to cast stones anonymously behind their computer screen.

Really it was necessary because it is a financial misstep that YOU made when YOU decided to rent the house for LESS than the mortgage. That is ON YOU. That is YOUR error. That was YOUR bad decision. I feel sorry for people who don't take responsibility for their decisions -- such as you. Does the pity work for you? The colon cancer was thrown in just to try to get sympathy. The inflated housing market? Really? When was that? Not when you rented the house to others. The one that needs to grow up is you.

 

[Ohiogal]

No, their is no legal way to break the lease. What the others are missing is that since you are unemployed that it is hard to pay for rent where you are now plus a part of the mortgage payment since one of the tenants is not paying their share. I am assuming that their is more than one since you stated, "One of the tenants." The others are paying. Which I believe would make that clause be thrown out the window for the other tenants listed on the lease. You would still have the problem.

If you believe you can get more rent, offer to buy them out of their lease. Be reasonable. They have the burden of moving again and trouble finding another place.
Plus I would give back their deposit. All they can say is "no".

Where does it state that one of the tenants is not paying their rent? Where does it state that the full amount of rent in the lease is NOT being paid every month? Just because one tenant filed bankruptcy does NOT mean they are not paying their rent. And the person declared bankruptcy in 2012. The landlord did NOTHING then. You are making assumptions quite frankly that someone is not paying. That may not be true at all.