Early termination of a rental agreement

It is very important to have already stipulated in the residential or commercial rental leases what will be the penalty in case the tenant has to leave the property before the lease ends. In the case of commercial contracts, the clauses are more extensive and have many other important aspects, since in general these contracts have much longer and specific terms.

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The contracts that are used in the state of Florida, those approved by the Miami Beach Association of Realtors, already have stipulated how to implement this. Usually there are two ways to do it. One is by checking that the tenant has a 2-month penalty, usually the last month and the security deposit that the tenant advanced at the time of entering the property. The other is marked in the contract that the landlord has the right to collect from the tenant everything they have not collected until they get a new tenant. (These issues we always advise to handle with a specialized real estate attorney.)

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It is important that the rules for terminating the contract in advance are very clear before handing over the property to the tenants. It also seems important to us to give a tenant the possibility of leaving, since the situation of tenants can change for many reasons, countless… having the clear rules for canceling a contract mentioned above, tenants can make decisions, knowing that it is not free to leave early. It will have a cost, but they already know what it will be. With clear rules between both parties, decisions can be made quickly and everyone knows what the costs will be in advance. Clear rules from the beginning make solving any problem easier for both parties.

Happy tenants, happy owners.