Re: Tenant wants to break “No Right of Early Terminati on” lease.

>I rented my old house in April. The lease was signed for 1 year with
>no early termination clause.  We have the faxed copy from their agent
>with the tenant=92s initials on agreeing to =93No Right of Early
>Termination=94.
>
>It has been three months and now my tenant wants to break the lease.
>They just want to pay 2 months rent and break the lease. We have
>already paid a months to their agent.
>
>It is extremely hard to rent this property again, as subdivision added
>a bylaw recently - prohibition on renting. I have only three months to
>rent the property, if not I have to sell it. It would be a loss
>selling my old home in this market. And it is a real pain renting this
>property again. There is a good chance it may not rent.

Ok, what does that prohibition mean?

If you hold your existing tenants to the lease, you get rent until
March 2009 but you have disgruntled tenants, and you can't rent it
again.

If you don't hold the existing tenants to the lease, but you can
re-lease it, you get rent until whatever term of the lease expires,
say, July 2009, then you can't rent it again.

If you don't hold the existing tenants to the lease, and you can't
re-lease it in 3 months, you can't rent it again, and you get
rent to August 2008, per the deal they offered.  Is that correct?

No matter what it seems you'll be selling this property in a year
if you can't find a tenant who wants a longer lease.

>Please advice on our course of action,
>1. Should we legally contend? They have an excellent credit but
>unfortunately is an attorney.

Note that your tenants may get mad and take the bylaws of the
association as action items to violate.

>2. Or, should we take their payment, and try renting it again and take
>our chances there.

It seems to me that long-term you're screwed anyway.