I posted this question on 8/22 under the subject Sublet. Thanks to all who have tried to help! Now things have developed a bit. I want to give everyone an update.

My nephew requested the landlord to change the price and leasing term to his rental price and leasing term. The response from the landlord was no. No room for discussion.

Knowing the market in that area, the property should have been rented out fairly quickly. But the landlord keeps telling us that he has not bite yet.

Today, he sent an email to my nephew asking my nephew and his roommate to pay 2 more month rent plus give up their deposits, he'll agree to release them from the lease.

My instinct tells me that he has a signed or he is getting close to sign a contract with another set to tenants.

How do we go if he is trying to collect double rents? How do we find out if he has a lease or not? If he has one, how do we find out when is the new lease starts?

I'm sorry, but this guy sounds like a slime-ball.

Did the boys ever move in? When did they give notice and when did they move out?

I'm seriously thinking that ID send him a letter, fax and email, all saying the say thing. 30 days notice is given, the last month of rent has been paid. Deposit isn't rent, but in this case I would call it that since I'm sure the LL isn't going to refund it even though he is supposed to. And tell the boys to move on with life. This guy isn't a professional LL, he is trying to cheat them.

Ok so the guy is probably trying to make some money, well lots of money, but to be fair here is another side.

It's not double rents. They are paying to terminate the lease. The amount of the termination fee is coincidentally 2X rent plus the deposit. Not sure of the condition of the unit but perhaps he feels the deposit is needed to return the place to pre-move-in condition. Perhaps not and he is just wanting the extra money.

As for signing with another set of tenants, I seriously doubt this unless he has shown the place.

Now if he has shown and screened then perhaps your theory is correct.

At any rate we as landlords are owed something for our time. If a tenant breaks a lease then we are out the time it takes to re-rent. While it sounds nice to lease it at the same price and just for the remainder of the current lease, that is double brain damage as you will likely be re-renting it when the remaining time is up and you need to raise the rent to market but your current tenant can't afford it. Finally there is risk involved. Every time we go the open market to find a new tenant we have the risk that the new tenant will in the end cost us money. We have a paying tenant in place that is not damaging the property we are thereby assuming the risk that the new tenant will damage the property. I don't see why the exiting tenant should not pay the landlord for that risk.

This is negotiations so counter with 1 month and sec deposit. You might hint that your situation could change if it's too costly to leave. He might then come down on the ask if he has someone lined up because he is getting more rent and the termination fee. He might not care in which case he calls your bluff.

Lastly check your state law. Here in CO we have to allow them to sublease for the remainder of the term. The tenant remains completely financially responsible for the subtenant so if the subtenant goes and trashes the place the first tenant is on the hook.

There must be more to this story since the landlord never gave you the keys (ie you never had possession to start with). I'm sure the lease said that he would give you possession on some specific day... which clearly didn't happen.

Forgot the bit about it being a student rental. If he doesn't have it rented then he could loose a whole semester of rent.

Bill(CO), The landlord can not inflict a penalty on the tenant for breaking the lease other than the rent due while he attempts to mitigate the damage by re-renting. He can not justifiably keep the SD, he can only get paid for rent due until the end of the lease or it is re-rented.

Gruvin - It's not a penalty. It's a fee to cover costs. Now I don't agree with how the landlord in question approached it, at least as far as we know. The time and expense we have in re-renting early is an expense and we have every right to be compensated for it.

A better way to word it would be your termination fee is X and since you did not move in they we can apply your SD to that fee.

I disagree that you can only be paid for rent due until the end of the lease or the unit is re-rented. You can only be paid RENT until the end of the lease or the unit is re-rented. You can collect other fees for other services besides rent. This fee is for termination of the contract it's NOT rent.