ELT fee (by Kitty [AL]) Oct 21, 2017 7:32 AM
ELT fee (by Ray-N-Pa [PA]) Oct 21, 2017 8:18 AM
ELT fee (by Sisco [MO]) Oct 21, 2017 8:44 AM
ELT fee (by phil [NY]) Oct 21, 2017 8:52 AM
ELT fee (by bet [MA]) Oct 22, 2017 6:50 AM
ELT fee (by BRAD 20,000 [IN]) Oct 22, 2017 10:56 PM
ELT fee (by John [NY]) Oct 23, 2017 11:35 AM
ELT fee (by Ray-N-Pa [PA]) Oct 23, 2017 1:53 PM
ELT fee (by John [NY]) Oct 24, 2017 9:22 AM
ELT fee (by Kitty [AL]) Posted on: Oct 21, 2017 7:32 AM Message:
I've been using the Early Lease Termination fee on my leases for awhile now. For ones that aren't familiar with this, a tenant has to pay at least 6 months rent to qualify for ELT. After 6 months the tenant can pay a fee to get out of the lease and they also forfeit their deposit. Fox example, the rent is $610 and the ELT is $700. This month I have 2 tenants, both millennials, who are choosing to do the ELT. One said he plans to pay this and the other isn't talking. I feel like there's a good chance I might not get the ELT on one of these. I guess my only recourse is to get a judgement against the tenant's credit. What does everyone think about all of this? --97.80.xxx.xx |
ELT fee (by Ray-N-Pa [PA]) Posted on: Oct 21, 2017 8:18 AM Message:
The use of an ELT is a solid business practice......but the LL has to use their coconut too. There will be cases where the ELT might be uncollectable. There will be other times where the tenant is driving you simply crazy because you will not release them. Is your sanity worthy a ELT? There are even a few limited cases where the ELT should be waived - although many on this board disagree with that statement. (Military clause, extreme change in health, purchase of the same house by the tenant, and happy clause might be some examples that you might want to consider)
It is key to know your state and local laws. Understand how your ELT clause is written. Is an ELT an entitlement to LL? In front of most of our justices it is the tenants option to pay it or be held liable for future obligations on the place. So where there are many that will beat there fist against their chest like a gorilla claiming this is best way - it will be largely up to the judge to decide if an ELT is valid or not.
Also understand that an ELT fee can be a great gateway for a tenant file an appeal in our state. How many ELT would you need to collect to cover the cost of a single appeal? So there is some gamesmenship that has too be used judicially be a LL.
I wish I could provide a one answer solution for you but this depends largely on your market place and the time of year around here. If a tenant wants to break my lease they don't have to pay the ELT fee....they can always stay on the hook for it and pay me to remarket the place until its filled. If this occurs on December 20th up here in the lake effect snow belt, they might be further ahead just paying the ELT fee. Then again, the same place is easily filled within two weeks when its open between March to October.
So hopefully this helps you out - but there are no easy answers. --24.101.xxx.xxx |
ELT fee (by Sisco [MO]) Posted on: Oct 21, 2017 8:44 AM Message:
First: only rent to easily collectible tenants.
If tenant does not fulfill the terms of lease, and moves out without paying, sue them for damages, get judgement and collect. If you have erred and entered into a lease with an uncollectible tenant....just do the best you can. --72.172.xxx.xx |
ELT fee (by phil [NY]) Posted on: Oct 21, 2017 8:52 AM Message:
Usually a SD can not be forfeited as per statute guidelines for what can and cannot be deducted from a SD --73.197.xxx.xx |
ELT fee (by bet [MA]) Posted on: Oct 22, 2017 6:50 AM Message:
We collect 3 months rent upfront at the beginning of tenancy. 1st, last sd. If they break their lease, they have to vacant in the month that they paid and gave notice and they walk leaving 2 months on the table which I already have. In all cases if rent is not paid on the 1st, Notices are sent out on the 2nd. --74.104.xxx.xx |
ELT fee (by BRAD 20,000 [IN]) Posted on: Oct 22, 2017 10:56 PM Message:
Kitty,
“I might not get the ELT...” only if you allow it. Charge it to their account and sue if they don’t pay.
A fee equal to 2 months rent is normal.
You are leaving money on the table AND not giving the, an incentive. Research shows most people assume they will not be getting their deposit back so they don’t care.
Legally you can only keep a deposit for unpaid rent, fees, and repairs.
I don’t understand the part about paying 6 months to qualify for ELT. our ELT is in effect the moment they sign the lease. We have had people decide they don’t want the house the next day and pay the fee. (Divorce that night or 5heir first choice comes open...)
We apply their deposit to whatever they owe.
Hope this helps!
BRAD --68.50.xx.xxx |
ELT fee (by John [NY]) Posted on: Oct 23, 2017 11:35 AM Message:
I had a judge here tell me she found the ELT fee unconscionable and wouldn't enforce it during an eviction for non payment --107.77.xxx.x |
ELT fee (by Ray-N-Pa [PA]) Posted on: Oct 23, 2017 1:53 PM Message:
John,
It is all in the wording of the ELT in the lease. In the lease I use, the tenant has a choice of staying on the hook for the place until it re-rents out along with some fees and minor expenses or just pay the ELT. The ELT provides stability and a set number for a tenant.
The choice is the tenant's and not really the LLs. If the judge denies the ELT - and I have been there when he has.......have the numbers for loss rent, marketing and advertising at the ready.
To tell the truth......the only time I was denied by a judge, I didn't have that info at my finger tips. --24.101.xxx.xxx |
ELT fee (by John [NY]) Posted on: Oct 24, 2017 9:22 AM Message:
Judge only denied it cause it was future rent. I guess if I left tenant in there not paying they would be on the hook. Otherwise this judge wouldn't enforce it since.i.was evicting.her --107.77.xxx.x |
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