What Happens with a Lease Break

When our Owner Relations team receives notice from a tenant that they intend to break their lease, your Owner Relations Coordinator will present you with two options:

Option A: Actual damages

This means that the tenants are responsible for the rent, utilities, and landscaping of the home until the home is re-rented. They would also be responsible for the lease fee which is 50% of the first full month’s rent, and advertising fees. With this option, everything about the current lease has to stay the same, meaning the current rental amount and the lease expiration date would be the same. (See below for the current lease language on early termination).

Option B: Flat fee of 1.5X the monthly rent

This is very straight forward - the tenant pays 1.5X the monthly rent. This is in addition to the rent through 30 days from their notice.

We typically recommend option B – the flat fee of 1.5X the monthly rent. This is because It is cut and dry, and you are more likely to receive the money owed. The tenant has to pay the day they give notice instead of waiting to re-rent for the final amount. With actual damages it can be very difficult to get the money owed. Once the tenant has moved out of the property, collections typically has to get involved.

We work to rent your property out as soon as possible. While we do not show the property while they are still in it, we can advertise as “coming soon”.

Mainlander does not charge management fees on lease break fees.

LEASE LANGUAGE

4. Early termination for fixed term tenancy:

Upon any failure of Resident to occupy the Premises for the full term of a fixed-term tenancy, for any reason other than as provided in ORS 90.453(2), 90.472 or 90.475, Owner/Agent may charge Resident either:

A) all of the following: i) all rent, unpaid fees and other non-rent charges accrued prior to the date that Owner/Agent knew or reasonably should have known of the abandonment or relinquishment
of the Premises; ii) all damages relating to the condition of the Premises; iii) an early termination fee in an amount not to exceed one and one-half month’s stated rent and which is due on
the earlier of the date Resident gives notice to vacate or the date the Premises is vacated; iv) interest on the above amounts at the statutory rate from the date each was due, and v) all other
amounts are due at the times specified in this Rental Agreement; or

B) all actual damages resulting from the early termination, including but not limited to: (i) repayment of concessions; all rent through the earlier of the date the Premises is re-rented and the lease termination
date; (ii) advertising and administrative costs to re-rent the Premises; (iii) concessions given to re-rent the Premises; (iv) the difference in rent if a lower rental rate is received from a
replacement resident during the remaining term of the original Rental Agreement; (v) damages related to the condition of the Premises, and (iv) interest on all amounts at the statutory rate.