Thursday, August 19, 2010

Breaking a rental lease in California- 9 months left on the lease.?

I have 9 months left on my lease, but I need to move out of state for a job offer. If I don't take the job, I will most likely declare bankruptcy here in California. Would I be held liable for the remaining 9 months of the lease, or just 2-3 months while they look for a tenant? Would I have to pay this penalty fee in a lump sum? What is my worst case scenario?Breaking a rental lease in California- 9 months left on the lease.?
Here are your laws is California on lease's http://www.uslandlord.com/laws/ca.html on legal resouces %26amp; more.





Plus knowledge of other California laws on anything check this site and talk live with a lawyer at http://www.lawyers.com/ which on their site can pin point you a local attorney right in your town [ great site ].Breaking a rental lease in California- 9 months left on the lease.?
Can you sublet your unit out for the remainder of your lease?





Normally, you are responsible for the balance of the lease term when you break your lease ... BUT landlord must mitigate your damages, meaning that he or she must make every reasonable effort to rent the property under the same or similar rental terms (rent, length of lease, etc). You could end up owing a month or two depending on the demand for rentals, the desireability of the unit, etc ...





Your landlord may just let you out of your lease with no problems. Explain your situation ... you are facing bankruptcy (which means you can't afford to pay your rent), you have an out of state job offer, etc. Most landlords would rather have a smooth exit than an expensive messy one.
You would be on the hook for the remainder of the lease unless it is rented to someone else. Luckily, the law is such that the landlord must make every effort to re-let the unit and alleviate your obligation as soon as possible. In case you have an unscrupulous landlord, they cannot charge your for the lease for a single day more than it takes for someone else to move in.





However, if you have a good, or at least cordial, relationship with your landlord, you can tell him/her what's going on and they may be willing to cut you some slack. The more notice you can give, the better.





As for the lump sum issue, you would just have to keep paying monthly until the unit is rented. You would not have to pay the remainder of the lease all at once, that would violate the ';double dipping'; laws if the unit was leased again during that time.
Technically you would be liable for what is left on the lease, unless there is an early move clause in it. Sometimes there is a clause saying you may have to pay 2 or 3 months rent if you vacate early. Talk to your landlord. If they are nice they may let you off with just one months rent. If they do, GET IT IN WRITING!!!
Let's start from the top. I am not a lawyer, but I play one online, and have experience from the other side of the lease (building management).





While I am not familiar with the specifics of California law, generally speaking, the worst case scenario is that you will be forced to hold up your end of the lease for the full term.





However, most landlords are, if nothing else, practical. If you tell them how screwed you are fiscally and that you have to move else you would go bankrupt - and consequently have the lease broken by the courts - he or she may be willing to work out an arrangement.





Now, if you can find a replacement tenant, that alone should suffice. Most of the time, a replacement tenant will have to only fulfill the current lease term, then sign the typical lease (here, and I'm guessing there, it's a one year lease).





You should carefully read your lease and see if there's any clauses that may help you break the lease. Heck, you may be able to sublet your current apartment and make a couple bucks in the process, and then transfer the tenant to the landlord at the slightly higher rate in a strange satisfying win-win.





Now, if the landlord requests a fee to break the lease early, you can probably make arrangements to pay it, though a lump sum has the advantage of a clean break, with no obligations burdening your already overpacked car.

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