I rented to a tenant on a month to month lease (California). My lease says "Tenant may terminate this lease without penalty if the tenant gives at least 30 days' notice."
However, elsewhere it the lease it says: "If this lease is terminated for any reason less than six months from inception, tenant agrees to pay a "Re-Rent" fee of $150 to offset manager's time and expense in finding a replacement tenant."
Tenants gave a 30 day notice on June 5th and vacated July 5th. Since tenants terminated before six months, I charged them $150 for a rent up fee.
Does anyone disagree with my right to charge this $150 fee? What about my termination clause that says the tenant can terminate "without penalty" with 30 days notice. Could my $150 charge be interpreted as an unallowable penalty? I could have used an initial 6 month term, instead of month to month. But with that length of term, any early move-out by the tenant would have obligated them to rent for the remainder of the lease, IN ADDITION to the early move-out "penalty." By allowing them to move out with only 30 days' notice, they are not locked into a six month lease. They only have to pay $150. Sounds fair to me.
However, elsewhere it the lease it says: "If this lease is terminated for any reason less than six months from inception, tenant agrees to pay a "Re-Rent" fee of $150 to offset manager's time and expense in finding a replacement tenant."
Tenants gave a 30 day notice on June 5th and vacated July 5th. Since tenants terminated before six months, I charged them $150 for a rent up fee.
Does anyone disagree with my right to charge this $150 fee? What about my termination clause that says the tenant can terminate "without penalty" with 30 days notice. Could my $150 charge be interpreted as an unallowable penalty? I could have used an initial 6 month term, instead of month to month. But with that length of term, any early move-out by the tenant would have obligated them to rent for the remainder of the lease, IN ADDITION to the early move-out "penalty." By allowing them to move out with only 30 days' notice, they are not locked into a six month lease. They only have to pay $150. Sounds fair to me.