Lease Break - unique situation for me.

[pixelrogue1]

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

Tenants requested to leave a two year lease with apx. 15 more months left.

I approved a new application and everything was going smoothly. I needed a note from the current tenant with an exit date so I had a date from which to write the new lease. Tenant provides a note the date.

The new lease fell through last minute.
The current tenants claim my request for an exit date in writing constitutes legally binding exit point for the lease - they will be out of the building (legally) by that date.

Kills me when a tenant takes advantage of a situation, especially when efforts were applied to help out those same tenants.

Does that note indeed stipulate a legal end to the existing lease even though there is no new lease in place?

 

[pixelrogue1]

If true, how would one prevent such a loophole in the future?

If true, how would one prevent such a loophole in the future?

 

[Gail in Georgia]

Request an exit date with the inclusion "in the event that a new lease is completed."

Frankly, I believe your current tenants are full of hot air on this one.

Gail

 

[LdiJ]

Request an exit date with the inclusion "in the event that a new lease is completed."

Frankly, I believe your current tenants are full of hot air on this one.

Gail

I am riding the fence. The current tenants seem to have made final plans based on the landlord asking for a firm exit date.

 

[xylene]

You want too many bites st this apple.

Your misfortune does not abrogate the deal you made.

Maybe you'd like them to be liable if the replacements are deadbeats?

 

[justalayman]

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

Tenants requested to leave a two year lease with apx. 15 more months left.

I approved a new application and everything was going smoothly. I needed a note from the current tenant with an exit date so I had a date from which to write the new lease. Tenant provides a note the date.

The new lease fell through last minute.
The current tenants claim my request for an exit date in writing constitutes legally binding exit point for the lease - they will be out of the building (legally) by that date.

Kills me when a tenant takes advantage of a situation, especially when efforts were applied to help out those same tenants.

Does that note indeed stipulate a legal end to the existing lease even though there is no new lease in place?

You wanted the end date. You got an end date. It is not the fault of the leaving tenants your new tenant lease fell apart.

None the less, you had a deal in place to terminate the date provided. You are bound to it.


How to do things differently in the future?

Simply tell the existing tenant you will not release them from a lease before it’s natural expiration.

 

[justalayman]

Request an exit date with the inclusion "in the event that a new lease is completed."

Frankly, I believe your current tenants are full of hot air on this one.

Gail

Why bother with the problem at all? He writes a lease. It has a defined date of termination. I presume he is obligated to mitigate his damages if a tenant breaches the lease.

If he chooses to not chase a former tenant for money due, it’s his option but at least he won’t be hamstringing himself trying to juggle tenants.

 

[adjusterjack]

I was a landlord for 20 years. I gotta side with the tenants on this one. You shot yourself in the foot by:

1 - Allowing the move out in the first place.

2 - Not having written contingencies about the move out.

If true, how would one prevent such a loophole in the future?

1 - Never give tenants consent to leave. (Unless they are military. There are different requirements for that.)

2 - If you do, have written contingencies agreed to and signed by the tenant.

3 - Get a lease break fee. You can have it in your lease or not. Doesn't matter. If they want to leave early "Sure, give me two months rent right now and I'll approve it."

4 - Never commit to a new tenant before the old one is out.

 

[adjusterjack]

I presume he is obligated to mitigate his damages if a tenant breaches the lease.

Not in Pennsylvania. See Stonehedge Square v. Movie Merchants:

https://www.leagle.com/decision/1998964552pa4121884.xml

The court was quite emphatic about its analysis of why a landlord should have no duty to mitigate.

 

[justalayman]

Not in Pennsylvania. See Stonehedge Square v. Movie Merchants:

https://www.leagle.com/decision/1998964552pa4121884.xml

The court was quite emphatic about its analysis of why a landlord should have no duty to mitigate.

(Pssssst. That’s a commercial lease although it speaks to residential leases at some level. How about this one since it is specifically a residential lease case. Same result but more on point)

https://www.leagle.com/decision/199427522padampc4th2531238

 

[adjusterjack]

(Pssssst. That’s a commercial lease although it speaks to residential leases at some level. How about this one since it is specifically a residential lease case. Same result but more on point)

https://www.leagle.com/decision/199427522padampc4th2531238

Essex House is a 1994 case at the Common Pleas level.

A 1995 commercial lease case, Moon Valley Travel v. Morgan Mgmt, cited Essex House to justify a similar ruling that the LL had a duty to mitigate.

https://www.leagle.com/decision/199551723padampc4th4941466

Stonehedge is a 1998 decision of the PA Supreme Court.

The Stonehedge decision referred to the PA landlord tenant statute which is inclusive of both residential and commercial landlord tenant arrangements.

Stonehedge set precedent in its ruling. Given the emphatic nature of the ruling, I'm certain that it would also apply to residential tenancies.

I'd be willing to bet that both lower court decisions would have had to go the other way if tried subsequently to the Stonehedge decision.

 

[HRZ]

OP ...I was a LL in PA for decades... I think you shot yourself in the foot on this one ! I would expect a local DJ to see it tenants way ...and you would be forced into County Court de novo. I see it tenants way .

HOWEVER , there might be details that matter ...a mere written notice from a tenant that he will be out on date XYZ does NOT by itself form the elements of a contract or a revision to an existing written contract ( which may have specific provisions as to how it is to be modified )

But I think the sequence of events runs against you and a contract exists..they asked for a modification , you agreed subject to written confirmation, they supplied a written confirmation / offer and it sure reads like you accepted the written offer . Yes your actual lease may have words that nothing counts unless it is in writing ...but convince me that you didn't accept the written termination offer as presented and that you rejected the offer.

Sure, hindsight is better ....

 

[pixelrogue1]

Clarifications

Thank you all for the input.

The tenants stopped placing anything in writing a while back - everything remained verbal and i required the date to be in writing (just in case - and the date they gave me in writing was two weeks later than the verbal.)

If tenants wants out - I am obligated to try to get the apartment re-rented. That is law here.

The lease states the apartment must be re-rented (and there is a buy-out option.)

So it comes down to the following:

Apartment has not been re-rented, therefore the tenant obligation remains in place - to- I requested notice of a date to so I could get a new lease in place.

Side notes:
In the course of less than one day i was being told they purchased airfair to fly people (family) in to help them move (which i expect costs more than hiring professional movers for less than 850 square feet of items) etc.

 

[justalayman]

Thank you all for the input.

The tenants stopped placing anything in writing a while back - everything remained verbal and i required the date to be in writing (just in case - and the date they gave me in writing was two weeks later than the verbal.)

If tenants wants out - I am obligated to try to get the apartment re-rented. That is law here.

The lease states the apartment must be re-rented (and there is a buy-out option.)

So it comes down to the following:

Apartment has not been re-rented, therefore the tenant obligation remains in place - to- I requested notice of a date to so I could get a new lease in place.

Side notes:
In the course of less than one day i was being told they purchased airfair to fly people (family) in to help them move (which i expect costs more than hiring professional movers for less than 850 square feet of items) etc.

Unless you have some local law in place, no, you aren’t required to re-rent to mitigate your damages.

But that’s irrelevent in this situation. You agreed to a termination of the lease with tenancy to cease on whatever date you were given. You demanding the committee you to accepting the termination of the lease as of that date.

If you want to play the; you cannot be released until I’ve rerented the place vs. I need a definate cutoff date so I can relet the unit, you’re going to lose when it comes to that argument. Your obligation to rerent is not in play until they leave and have not negotiated the end date (such as you have here). Don’t try to referral until you have possession.


If you charged the buyout fee their obligation under the lease ends as well.



Did you charge them the buy out fee?

Chalk this up to a learning experience.


And it is never a good idea to count your chickens before they hatch and unless you are the Hulk, trying to juggle two different lessees is not a smart idea. Make sure one is gone, or will leave with a high certainty, before you sign a start date with a new tenant.

 

[pixelrogue1]

OP ...I was a LL in PA for decades... I think you shot yourself in the foot on this one ! I would expect a local DJ to see it tenants way ...and you would be forced into County Court de novo. I see it tenants way .

HOWEVER , there might be details that matter ...a mere written notice from a tenant that he will be out on date XYZ does NOT by itself form the elements of a contract or a revision to an existing written contract ( which may have specific provisions as to how it is to be modified )

But I think the sequence of events runs against you and a contract exists..they asked for a modification , you agreed subject to written confirmation, they supplied a written confirmation / offer and it sure reads like you accepted the written offer . Yes your actual lease may have words that nothing counts unless it is in writing ...but convince me that you didn't accept the written termination offer as presented and that you rejected the offer.

Sure, hindsight is better ....

---

I appreciate the insight.

The tenants wouldn't put anything in writing, so i have provided written summaries of the verbal discussions with each communication, and at each point have expressed this was tentative until we had an new complete lease. The note was a quick jot of dates which they signed. Yes, I used this date (accepted the date) as to structure the new lease, and continues reminders (including in writing) that the date would only apply once we had the new lease.

So it was accepteded with conditions, yet that may be didficult to cleary proove.