Broken lease and last month's rent

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IdaChik

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First the background, we rented our house from Sept 2008 - Aug 2009 (12 month lease) for $1,100 a month. The renters renewed their lease, but asked for reduced rent. So we created a second 12 month lease from Sept 2009 - Aug 2010 for $1,000 a month. They paid first, last, and a deposit in Sept 2008 (($1,100 x2) + security deposit).

We have the following clause regarding termination:
"If Tenant terminates this lease prior to its ending date, Tenant must give Landlord at lease 30 days' written notice and must pay a lease buyout fee of one month's rent or as otherwise agreed herein. Failure of Tenant to give 30 days' notice makes Tenant liable for up to two months' rent. "

The lease is up Aug 31, 2010. The tenant called and left a message on my husband's cell phone on May 10, 2010 that they were moving out of the area. We got an email on May 16, 2010 that they want to be in their new location by late June (no specific date). So, this is breaking the lease.

What is considered 30 days notice? Move out June 16th?

Do they owe 1 or 2 month's rent as a buyout fee?

Since they paid $1,100 for last in Sept 2008, how does that play out now tha the rent is $1,000 per month?

How does it work when there is a last month's rent and a buyout fee? Do they not pay for June, but cut us a check for the buyout fee?

We're hoping that we can fill the rental, but it's a tough market so we need to make sure that we're covered.
 
First the background, we rented our house from Sept 2008 - Aug 2009 (12 month lease) for $1,100 a month. The renters renewed their lease, but asked for reduced rent. So we created a second 12 month lease from Sept 2009 - Aug 2010 for $1,000 a month. They paid first, last, and a deposit in Sept 2008 (($1,100 x2) + security deposit).

We have the following clause regarding termination:
"If Tenant terminates this lease prior to its ending date, Tenant must give Landlord at lease 30 days' written notice and must pay a lease buyout fee of one month's rent or as otherwise agreed herein. Failure of Tenant to give 30 days' notice makes Tenant liable for up to two months' rent. "

The lease is up Aug 31, 2010. The tenant called and left a message on my husband's cell phone on May 10, 2010 that they were moving out of the area. We got an email on May 16, 2010 that they want to be in their new location by late June (no specific date). So, this is breaking the lease.

What is considered 30 days notice? Move out June 16th?

Do they owe 1 or 2 month's rent as a buyout fee?

Since they paid $1,100 for last in Sept 2008, how does that play out now tha the rent is $1,000 per month?

How does it work when there is a last month's rent and a buyout fee? Do they not pay for June, but cut us a check for the buyout fee?

We're hoping that we can fill the rental, but it's a tough market so we need to make sure that we're covered.


First of all, for everyone's benefit, speak to the tenants.
Seek them out and discuss their departure.
You need to know, and they need to tell you, when they are leaving.
You need a definite date.
If they won't give you one, try to agree upon one together.

The lease is up on 31 August.
You have $2,200 of their money (it could all be your money soon).
It looks to me like they are planning on leaving by 30 June.
They are most likely amenable to you keeping the entire $2,200.
So, I'd offer them $500 back to make sure the premises has been cleaned.
That way, they can move, and you can start getting to ready to rent it to someone else.

They might have other ideas.
They might want more (or all) of their deposit back.
But, you won't know until you speak with them.

So, be diligent in speaking to them about their plans.
Stop leaving voice mail messages and exchanging emails.
You met face to face to lease to them, meet face to face to end the lease.

Now, one more thing.
I'll bet these guys are moving out of state.
So, you can forget about suing them in small claims, if it comes to that.
If they move to Idaho (for example), an Oregon court would have no jurisdiction over them.
It would also be cost prohibitive for you to try and sue them in Idaho.
All I'm trying to say, is fix this before it gets out of hand.
Find out what they are doing and when they are going to do it!
 
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