Real Estate Articles

2020-08-24 Early Lease Buy Out Pays ! | By: Jeff Taylor

 By Jeffery Taylor – “Mr. Landlord”
One landlord recently explained her real case scenario of why she was happy that she had a lease buyout clause in her lease. Read on below:
"Good morning! This is why we have the early lease buy out fee in our lease! I got an email just after midnight on Tuesday morning. The young couple who has been here for 2 years and renewed their lease in late May to end in May 2021 got a good job offer. They need to move, fast. He starts the new job next week.
Obviously they are moving. They can't afford not to! They have a 60 day notice and the early lease buy out fee in their lease. But the 60 day notice isn't happening. I let her know that I'd work with them on the early lease buy out fee and notice, because honestly, they don't have a lot. They understand they are in a lease. I can afford to not charge the full 60 days and such if I can get it rented fast.
Classes start Aug 24, and this property is 1/2 mile from campus. Plus, it is a one bedroom, and those are highly desired, even if it is older. It has a stacked washer/dryer in it, plus I allow pets. I posted on Zillow, the university website, Facebook, and more. I already have 6 prospects that filled out the pre-showing survey. 4 are pre-qualified. (I ruled out 1 with a recent eviction and 1 with a stalking order of protection.) I let all who inquired know that we would not show until the end of the week, because it is totally stupid to show before they are moved out while they are in the middle of packing. I expect to have it rented to a new person by Saturday afternoon. In which case, I can afford to reduce the early lease buy out to $500 which fully covers my costs, including the hassle factor of a new resident.
I let the resident know that I'll send her a bill for the early lease buy out fee once I know my actual costs. Since they are young and still building credit, she is thrilled. I also asked if they have a moving package with the new job, because often a job will pay relocation fees, including those for canceling contracts. Meanwhile, by reducing their out of pocket costs and working with them, I get a good review on Google and Facebook, and they don't feel taken advantage of. Yet, my costs are covered. That is the perfect solution! Just another reason for the early lease buy out fee in the lease!" - Barb (MO)

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