Hello people …I’m a landlord in Chicago, and I have tenants in my condo who are requesting to terminate their lease early because they are expecting a baby and need a larger space. They have been good tenants, so I want to be reasonable, but this situation creates a significant financial impact for me. I’ll need to quickly hire a leasing company to show the unit, write a new lease, and turn over the unit, which can be costly since they take a hefty cut of the first month’s rent.
The current lease runs until March 2025, which is typically a great time to find new renters, especially leading up to the summer. However, my tenants want to end the lease as soon as possible, likely sometime between now and the end of the year, which is a much slower rental period. This situation also means I may have to deal with finding renters during the fall and winter months going forward.
I’m looking for legal options that will work for both parties. I previously suggested they pay an extra month’s rent to help cover my costs and the risk of not finding a tenant at a similar price during the slower months. However, nothing regarding a “termination fee” is explicitly outlined in the lease, so I want to ensure that whatever I propose is legal and fair.
I’m not trying to be a scumbag landlord; I’ve done my best to support these tenants and want to find a solution that makes sense for everyone involved.
Regarding lease end dates, if you find someone for late 2024, you can offer them an 18-month lease (or a 6-month lease, though that option might be less appealing to most tenants) instead of a standard 12-month lease. Then, at the end of that lease, you can switch back to a 12-month lease if they turn out to be good tenants.
Legally speaking, if they break the lease, you’ll need to check local statutes, but in my state, they are usually responsible for paying rent until you find a new tenant. You, as the landlord, have to do everything reasonable to procure that tenant in a timely manner.
It can get tricky, but if you want to work with them, you could both agree to withhold the security deposit to cover the rent. Sometimes this helps since it’s money they’ve already accounted for, rather than asking them to come up with two more months of rent on the spot. I wouldn’t suggest this as the first option, but keep it in mind; it would have to be explicitly agreed upon by both parties and well documented.
Why would you need to hire a property management company if you didn’t need one before? Personally, I think it’s fair to hold the current tenants responsible for rent until someone else can take over. That might mean there are no gaps in rent, or it could mean a few months without a tenant. Usually, the current tenants can help find someone to take their place, so being a nice, understanding landlord can really pay off in the long run. You want them to rave about you Otherwise, you can always find someone through traditional methods.
I think the same: what makes this time different from before? and that said, a brand new baby doesn’t really need their own bedroom; they just need about 4x6 feet of extra space next to the bed and some bathroom supplies for washing, etc. So the idea that they urgently need to move feels a bit exaggerated. They might just need a few extra months, especially if she’s giving birth right around the end of the lease. Moving would be really tough in that situation.
It’s not only the sqf but also specific details about unit that might push them to move. For example unit is located on 2nd floor or above with no elevator, which makes using stroller or carrying car seat with baby close to impossible. Also shower instead of bathtub or noisy street/neighbors etc. There are so many things that impact your perspective on living conditions when you are getting a child.
Been a landlord in Chicago for decades, and I’ve had tenants move out in December. Even though I was trying every day to fill the vacancy, the place sat empty for four months. In a similar situation last time, we all agreed that they would continue paying rent until I found new tenants. I advertised the place, and eventually, we found someone. It’s only a problem if they stop paying rent. You were in the right; they’re not allowed to break their lease.
I’m a landlord in Chicago too. Tenants must give proper notice, and you’re required to release the unit. They’re legally obligated to pay rent until that happens.
I’ve had tenants break a lease in December before, and it’s definitely not fun. I suggest signing a new lease that ends in May or June. Then, you can either sign a new 12-month lease or deduct one month each year until you get back to your preferred March timeframe. Spring and summer are usually great times to rent in Chicago
Otherwise, you can always find someone through traditional methods.