How to Break a Lease When You’re the LandlordHaving tenants break their lease is, unfortunately, a common occurrence for those who own rental property. But as the landlord, what if a situation comes up that requires you to end the relationship early?

As the owner of investment property, there may come a time when you have the opportunity to sell – which may or may not coincide with the end of your tenant’s lease. But that doesn’t necessarily mean that you have to forgo a sale.

In fact, there could be any number of reasons to terminate a tenant’s lease. So, it is best to prepare, just in case. You can do that by having a clause in the lease that allows you to terminate early “without cause.”

This clause will typically include language to the effect that the lease can terminate early – usually after giving the tenant at least 30 days notice – for reasons such as the sale of the property, or even to allow the property owner to move in.

It is important to note, though, that if you do not have such a clause in the lease, then you may not force the tenant to move out without cause (such as non-payment of rent or other lease violations). In this case, if your lease has a fixed term such as one year, this term applies to both parties – the tenant and the property owner / landlord.

If your current lease does not include a clause allowing you to terminate early, there are still ways that you can get out from under the day-to-day responsibilities of being a landlord (such as collecting rent and maintaining the property). That is by hiring a property manager.

Handing over the time-consuming duties of landlording can give you back your time, while also allowing you to reap the income and tax-related benefits of owning investment real estate. If you’d like to learn more about how an experienced property management team can benefit you, just give us a call.