As a landlord, there’s nothing better than finding the perfect tenant who plans on staying in place for many years to come. This can make your life much easier.
However, there are times when this doesn’t happen. There are times when a tenant moves on. Adding to this, he or she may want to break the lease early. In this case, you may want to consider negotiating a lease buyout.
With a negotiated lease buyout, both parties can move on happy, even if it’s not the ideal situation.
The market has a lot to do with how you approach this subject. For example, if the rental market is hot, it may only take you a few weeks to secure a new tenant.
Conversely, if the market is slow, it can take much longer.
The market should reflect the amount of the buyout, as you need to take into consideration the length of time to secure a new tenant as to once again generate cash flow from the property.
Before you begin to negotiate a lease buyout, learn more about your options and the language in your contract. This alone can give you a better idea of how to proceed and where to draw the line in regards to what you’ll accept.
You should never be in a rush to negotiate a lease buyout, as you want to do what’s best for you and your property. As long as you and your tenant are willing to compromise, you should be able to settle on something that works for both parties.
Source: American Apartment Owners Association, “Calling it Quits: How to Negotiate a Lease Buyout,” accessed March 01, 2018