Hi - I rented an Apartment in PA and signed a six month lease back in Jan with the explicit intention of not renewing it. I never received any notice from the landlord asking me if I wanted to renew the lease or move out, and I assumed I did not have to do anything for the lease to expire. However my landlord has now notified me that the lease was automatically renewed for six months since I did not give a two month written notice (as was noted in the contract). If I want to move out now I will have to pay a penalty of two months rent and forfeit my deposit (one month's rent). So the total penalty I am having to pay is three months rent on a six month lease! Is there any law in PA limiting the amount of penalty fees for breaking a lease?

Sorry to be the bearer of bad news, but...

Count it as a bargain... or a "buyout offer". Technically the landlord does not have to provide an "out" for the lease. He could charge you for the full 6 months.

Rickj is correct this is why one must read the lease agreement before signing. If there is anything you do not agree to mark it out and initial it.

A lease is a contract and a agreement between the parties, so if you don't agree to something in the contract don't sign it until the changes have been made, or marked it out and initial it. KNOW what you are signing!

If the lease stated specifically that it would be renewed unless 2 months notice was received, then you out of luck. However, if it just says that 2 months notice is required before vacating, then the lease can't be renewed for a 6 months term. It can be considered a month to month lease.

Basically, you need to read the lease terms and maybe consult an attorney to see if there is an out.

Hello mav:

There doesn't appear to be anything in Pa landlord/tenant law that prevents your landlord from the excessive "lease breakage fee". I, however (and you should too), question the legality of the lease renewing WITHOUT notice, instead of requiring some action to be performed.

It may not work - but it may. Clearly, you're not going to stay. Write a letter to your landlord. Send it certified, return receipt requested. Tell him that his paragraph automatically renewing the lease is illegal. And, that if he doesn't return ALL your security deposit in a timely manner, you will sue.

And, I would too. The worst that can happen is that you'll lose what you were already going to lose.

excon

Thanks for all the posts... they have been very helpful. The lease states explicitly that if a two month notice is not given, it will be renewed for an additional six months automatically. I am now wondering - since I am paying for an additional two months as lease breakage fees, can I keep possession of the apartment for another two months? Or do I have to give up possession when I pay the breakage fees?

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Originally Posted by ScottGem

If the lease stated specifically that it would be renewed unless 2 months notice was received, then you out of luck. However, if it just says that 2 months notice is required before vacating, then the lease can't be renewed for a 6 months term. It can be considered a month to month lease.

Basically, you need to read the lease terms and maybe consult an attorney to see if there is an out.

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The lease requires you to give 2 months notice (an excessive period by the way). I think you are incorrect in looking at this as a "lease breakage fee". From your original note it appears you are still in the apratment. Therefore, you can say to the landlord that you understand you are bound by the terms of the lease, so you are giving him 2 months notice and will move out on 8/23/06. You can move prior to that but you will be responsible for paying rent until then. You might be able to sublease for that short time if you can find a tenant.

BTW, while the 2 months is written into the lease, the security deposit can't be used. The purpose of a security deposit it to provide the landlord with funds in case of damage to the property. It could be used against the 2 months, but not in addition to it. I would make sure you take pictures of the condition of the premises in case he tries to withhold the security.

Hello again mav:

In my view, no. These are lease breakage fees - not rent. If you keep possession, you are accepting the new lease terms, and you'll be facing the same problem two months down the road.

However, I wouldn't give up the fight just yet. Just because he writes those terms in the lease, and just because the landlord/tenant act doesn't prohibit him from doing so, DOES NOT make it legal. Frankly, you have nothing to lose (except maybe the filing fee of about $35 and a little time), and everything to gain by filing a claim for the return of your deposit. I assume that you have not paid the penalties yet. Make him counterclaim for that.

In small claims court, anything can happen, and you have a good shot. The law doesn't look favorably upon a landlord who MAKES money on a default. Supposedly, the penalties are in place so that a landlord doesn't LOSE money. Sounds like this guy just wants to sit back and make some extra cash. He is also required by law to "mitigate" your damages. That means that he has to attempt to rent the place as soon as possible. If he does, he's supposed to return the difference to you, so that he's made "whole" - not loser - not winner. He's probably not going to do that, so you watch and show the judge that he didn't, and you'll win.

excon

PS> I, however, have been wrong before. Else my name wouldn't be excon

In rereading this, I see I missed something. The lease says that 2 months notice is needed otherwise the lease is renewed automatically. But what does the lease say about termination prior to the end of the term? If there are 4 months left on the lease, then paying 3 months is a bargain. If there are just over 2 months left, then give him notice and when the lease is up your obligation ends. You can still move prior to the expiration of the lease, but you will be responsible for rent until the end of the lease.

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Originally Posted by mav3e

Hi - I rented an Apartment in PA and signed a six month lease back in Jan with the explicit intention of not renewing it.

However my landlord has now notified me that the lease was automatically renewed for six months since I did not give a two month written notice (as was noted in the contract).

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If you rented in January, your lease should be valid until the end of this month. I do not think he could force you into a 6-month lease unless the original 6-month term is over, which is July 1st, right? You should still have a week to submit your 2 month notice before the original lease expires.

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Originally Posted by Northwind_Dagas

If you rented in January, your lease should be valid until the end of this month. I do not think he could force you into a 6-month lease unless the original 6-month term is over, which is July 1st, right? You should still have a week to submit your 2 month notice before the original lease expires.

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Don't think it works that way. Assuming the lease expires on June 30, he would have to have given notice prior to May 1 that he was not renewing. Without that, the lease was automatically extended to 12/30.

What the landlord appears to be telling him is that to get out of the lease prior to 12/30, will cost him 3 months rent.

Well, I just read your question. I have rented houses for many years and I can assure you Your landlord is playing hardball. I believe it is clear you signed the 6 month lease with the intention of not renewing it. This is a strong position in court. I would play my cards on this one. I would type up a letter saying "Landlord and Tenant mutually agree to terminate this lease without any penalty based on verbal communication of intention not to renew at time of signing." Make two copies and sign both. He probably won't sign but its worth a try. The direct approach. If he won't sign tell him you will see him in court. Generally, his term in the lease does not override ALL of the facts and circumstances of the lease and your verbal agreement. You are not breaking the lease, the lease is terminating. A well written legal document does not rely on a defalt provision to secure the lease. I would address this directly with the landlord not a clerk in the office and make it clear you intend to fight this. Whether, you want to go to the expense of hiring a lawyer or not is up to you, but I would think through a sound argument that supports your position and challenge him in court. From my experience most judges take a LOT of liberty with situations like yours and will rule in an equatable way rather than just strickly interpreting the lease verbatium. Also, you must remember (and I sometime regret to say this) Going to court is all about winning and losing. It has nothing to do with right or wrong. Your lawyer (or you if you go on your own) is "expected" to put up your best case. Not compromise. Of course you must be honest, but still you are there to defend your position. Remember you never intended to cheat the landlord. You just believe the single generic term of giving 2 months notice was not clear to you at the time of the signing and you communicated your intention to the landlord at the time of signing.