Lease cancellation

[lium]

What is the name of your state? CA

Tenant ABC and I signed up a one year lease with a deposit of $500 for a $33K lease last July 7. On July 18, he emailed me to cancel the lease due to his wife' change of mind, and wanted to compensate me for the inconvenience with the $500 deposit. I informed him that the cost of rerenting was 7% of the lease amount, i.e. $2,310 plus any lost of rent, should the property be vacant when his lease starts, i.e. August 1. His email response was go ahead and market the property. In addition, on his initial call to view the property, he had asked my early termination penalty, should he be reassigned overseas by his employer, I had responded with my policy of 7% of rerenting cost for the balance of his lease payments plus lost of rent.

On July 22, I signed up new tenants, effective August 15 and send tenant ABC a final bill for the $2,310 plus $1,375 for the half month's rent less $500, his sec dep. Tenant wants to renegotiate the rerenting cost because he said he received the lease (by mail) couple of days after he notified me of his cancellation, hence, may not have a legal abiding document. Lease was mailed to him immediately after July 7, mail was returned by PO for postage due a few days after and remailed on July 15.

Question is: what is Tenant ABC's liability? If I go to small claims court, will my demand for both the rerenting cost and half month's rent stand?

 

[lium]

What is the name of your state? CA

Tenant ABC and I signed up a one year lease with a deposit of $500 for a $33K lease last July 7. On July 18, he emailed me to cancel the lease due to his wife' change of mind, and wanted to compensate me for the inconvenience with the $500 deposit. I informed him that the cost of rerenting was 7% of the lease amount, i.e. $2,310 plus any lost of rent, should the property be vacant when his lease starts, i.e. August 1. His email response was go ahead and market the property. In addition, on his initial call to view the property, he had asked my early termination penalty, should he be reassigned overseas by his employer, I had responded with my policy of 7% of rerenting cost for the balance of his lease payments plus lost of rent.

On July 22, I signed up new tenants, effective August 15 and send tenant ABC a final bill for the $2,310 plus $1,375 for the half month's rent less $500, his sec dep. Tenant wants to renegotiate the rerenting cost because he said he received the lease (by mail) couple of days after he notified me of his cancellation, hence, may not have a legal abiding document. Lease was mailed to him immediately after July 7, mail was returned by PO for postage due a few days after and remailed on July 15.

Question is: what is Tenant ABC's liability? If I go to small claims court, will my demand for both the rerenting cost and half month's rent stand?

One more thing, the reason why the lease was mailed is because he did not want to wait for the copies.

 

[Hot Topic]

You say you "informed" ABC about the costs of "re-renting." What does it actually say in the lease that the two of you signed regarding penalties if the person changes her/his mind or wants to break the lease at a later time?

The lease wasn't to start until August 1st. I doubt that you can get back everything you're asking. He owes you for the two weeks the apartment is vacant, but I doubt you can collect the rest. You're supposed to be "made whole" for those two weeks, not collect a windfall from him, then the rent from the tenants who move in August 15th.

You and the guy could have gone to a local Kinkos, made a copy, and then he could have signed it in your presence. You have his email about the change of mind and you have the signed original.

 

[lium]

The lease says "In the event that Resident breaches the Lease Agreement, Owner shall be allowed at Owner's discretion, but not by way of limitation, to exercise any or all remedies provided Owner by California Civil Code Section 1951.2 and 1951.4. Damages Owner may recoverinclude the worth of the time of the award of the amount by which the unpaid rent for the balance of the term after the time of award, or for any shorter period of time specified in the Lease Agreement, exceeds the amount of such rental loss for the same period that the Resident proves could be reasonably avoided."

I had informed him by email of the rerenting costs of 7% of the total lease amount, it is the standard realtor's commission to rent a property for a one-year lease. This statement was also related to him on his first call to view the property, when he ask about the "breaking" of the lease agreement, should he be relocated by the company. The reason for cancelling this lease was because his wife changed her mind about moving. He came twice to see the place...the first time, signing an app, and giving me a $500 deposit and credit check fee. Left for a business/pleasure trip to visit his wife, emailed me and said he wants to hold off and see if he can find a bigger place. Came back from his trip after two weeks, knocked at my door and wants to see the place. This time he said he wants to take it. We went over to my place because he wanted a floor plan of the home. While at home, I ran his credit and we both signed the lease. I mentioned about going to my office to make copies, but he said "just mail it"...he was tired having just got off the plane. That was July 7th. On July 18, I got an email from him, stating he has a problem, because his wife is driving him crazy and would like to see how he can compensate me for all my troubles. I responded by giving him the cost of breaking the lease, i.e. the rerenting cost plus any loss of rent. He agreed and said go ahead and market the place.

I did and found a tenant, who originally wanted Sept. 1, but I persuaded them to start August 15. I emailed tenant abc about the new lease and the final bill. His response was..can we compromise on the rerenting cost? He thinks we do not have a bona-fide legal agreement because he did have the lease agreement in hand when he notified me he was not taking the place. The lease arrived a couple days after, according to him. So, my question is..is he right?

 

[acmb05]

The lease says "In the event that Resident breaches the Lease Agreement, Owner shall be allowed at Owner's discretion, but not by way of limitation, to exercise any or all remedies provided Owner by California Civil Code Section 1951.2 and 1951.4. Damages Owner may recoverinclude the worth of the time of the award of the amount by which the unpaid rent for the balance of the term after the time of award, or for any shorter period of time specified in the Lease Agreement, exceeds the amount of such rental loss for the same period that the Resident proves could be reasonably avoided."

I had informed him by email of the rerenting costs of 7% of the total lease amount, it is the standard realtor's commission to rent a property for a one-year lease. This statement was also related to him on his first call to view the property, when he ask about the "breaking" of the lease agreement, should he be relocated by the company. The reason for cancelling this lease was because his wife changed her mind about moving. He came twice to see the place...the first time, signing an app, and giving me a $500 deposit and credit check fee. Left for a business/pleasure trip to visit his wife, emailed me and said he wants to hold off and see if he can find a bigger place. Came back from his trip after two weeks, knocked at my door and wants to see the place. This time he said he wants to take it. We went over to my place because he wanted a floor plan of the home. While at home, I ran his credit and we both signed the lease. I mentioned about going to my office to make copies, but he said "just mail it"...he was tired having just got off the plane. That was July 7th. On July 18, I got an email from him, stating he has a problem, because his wife is driving him crazy and would like to see how he can compensate me for all my troubles. I responded by giving him the cost of breaking the lease, i.e. the rerenting cost plus any loss of rent. He agreed and said go ahead and market the place.

I did and found a tenant, who originally wanted Sept. 1, but I persuaded them to start August 15. I emailed tenant abc about the new lease and the final bill. His response was..can we compromise on the rerenting cost? He thinks we do not have a bona-fide legal agreement because he did have the lease agreement in hand when he notified me he was not taking the place. The lease arrived a couple days after, according to him. So, my question is..is he right?

So he owes you for the time and work it took you to get a new tennant plus the half a months rent. Now the question is does the four days it took you to find a tennant worth $2,310.00. Seeing as it only took you four days and you are really not out to much and no where in that quote of yours does it mention 7%, I dont think you would get that much if it went to court. You are entitled to what you lost out on and so far that is only the cost of advertising for those 4 days plus the half a month rent.