State Specific Question About: PENNSYLVANIA (PA)

how are you handling early lease terminations / what do you charge the current tenant in the following circumstances?

if you find a new resident to move in with little or no vacancy

If you find a new resident to move in but current resident can not move out in time to accommodate

do you charge additional showing fees each time you bring a prospective tenant to the unit or just a lump sum.

if you can not find a new resident and the unit goes empty for months

how are your leases worded to over these situations

"showing fees" each time you bring a prospective tenant to the unit.

Wow.

The basic doctrine of mitigation is that "A plaintiff cannot be compensated for damages which he [or she] could have avoided by reasonable effort or expenditures." The costs of such mitigation are recoverable, but there dont seem to be any costs, here.

The "reasonable effort" includes bringing prospective tenants to the unit.

In CA, landlord is entitled to reasonable EXPENSES in retaking possession of the property, in making repairs that tenants were obligated to make, and in preparing the property for reletting. What expenses are incurred in PA for bringing a prospective tenant to the property?

The so-called "early termination 'amount'" is a form of a "liquidated damages agreement", in which landlord and tenant agree in advance that damages due to early termination of lease are to be liquidated by some agreed-upon figure. But universally, the doctrine of liquidated damages requires adherence to a set of conditions governing such contract clauses, and if these conditions are not fulfilled, the agreement does not stand.

Scott - you want a clean break. My ETF is in the lease so it's like Moshe said a form of liquidated damages. Mine is rentx2 rounded out and always a specific dollar amount in the lease. At any rate, unless they just up and leave and I have to chase them down for it provided they are collectable, it's pay the fee and be done. I don't even show the place until they are gone. Usually the notice is so short and they are already packing and the place looks terrible. I show after they have moved. Two weeks is the most I've had a unit vacant after doing and ETF so I've made out ok. It also allows me to do some repairs or upgrades if needed.

Offer the "we'll let you off the hook for $X" and then don't worry about it until they are gone. Make sure that $X is enough to cover your time to re-rent and a reasonable vacancy. It's a risk you take and they pay you to take. I've found I am well compensated for my time when tenants move early.

For me, the ETF is MONEY IN HAND,NOW. It's ALWAYS better than a promise to pay from a resident.

It compensates me for the extra effort of re-renting.

In exchange for ME bringing in extra income I am willing to risk the time period to re-rent.

Note: Gotta know YOUR judge. You can charge what you want and many will pay it.

Know that the judge might see it a different way if it goes to court. My ETF is based on years of working with our local court so I know it will fly.

My judge can only grant a limited amount of rent when folks move out but he CAN charge FEES. He is OK with our ETF amounts and feels it gives the resident CHOICE rather than trapping them.

We still do proper move out procedures - inspection, photos, log in keys...AND send the required written Deposit Settlement.

Like BillS said, the typical ETF customer is already packing a leaving by the time you know about them leaving.It usually happens very quickly.

We set the amount and write in on the lease. (monthly rent plus $200-500 depending on size of rent = ETF)

Most have to sent up a payment plan for this extra money, over the next few paychecks. We put that in writing and can take them to court if they do not pay.

For the sake of newbies lurking: in ONE year our ETF income paid for my red Porsche 911.

This year it is paying for our trip to Israel.

Brad,

So you're going to Israel, or have you just returned?

Since you will be going as a tourist, and not becoming involved in life over there, I am sure than you will have a very enjoyable time. There is LOTS to see, some of it artificially emphasized, much of it only a little.

Have a good time.