[dkirk5]

I live in MD and currently renting a townhouse. The first year I signed a one year lease, then the second year verbally agreed month to month with no rate increase, except that I would fix minor repairs in the rental property instead of calling landlord to do it. Now the third year he increased the rent asking for $50 increase, I negotiated and stated could afford a $25 increase, and signed for another year. Shortly after signing, a house came up in the neighborhood that I was interested in buying in and I called my friend who is realtor and starting looking. I have found something I am interested in placing a bid on, but do not want to be penalized for moving or breaking a lease. I called my landlord and asked if we could somehow work this out to work for both of us. He said month to month rent would be higher. What is the typical penality for breaking a lease? Losing security deposit, which is nearly $3k which I cannot afford to loose either. I told him if we went to month to month, I'd pay the amount he originally asked, $1400/month and give 60 days notice if moving and I'd even show the place for him. He said he'd call me back after the New Year to discuss further after he speaks with his wife. What is the MD law? Can I loose my security deposit? Is there a penality to pay? Is there something more I need to offer to make it more reasonable, or is my offer reasonable? I am ready to place a bid, but this is the only thing holding me back and 2008 is the year to buy with real estate decreasing. Please advise.
dkirk5

[froggy7]

The problem is that you are on the weak side of the negotiation. You agreed to a year lease, and your landlord doesn't have to do anything to accommodate your desire to buy a house. Is there anything in your lease about what happens if you want to leave early? Sometimes there's a buy-out clause, quite often at least two months rent. If you just leave, then technically you are liable for the rent until the apartment is re-rented or the lease expires, whichever comes first, although your landlord must take reasonable steps to find a new tenant. And you may also be responsible for any costs to re-let the place: advertising, broker's fees, etc.

But it sounds like your landlord is actually willing to renegotiate the terms that you are renting under. It's not at all unusual for short-term rentals to be more per month than a yearly lease is, so his position is not unreasonable. About the best you can do is hear what he proposes, see if it will suit you, and then possibly see if there is some room for give and take if it doesn't.

[Fr_Chuck]

Yes, if you break the lease you will be liable for his re-renting of the apartmetn and you will have to keep paying the rent till he finds a new tenant. So you will be out much more most likely then your deposit, Iwould say if you break the lease, you will lose the deposiit and still owe him money.

Remember this is why a landlord agrress to lower rent for a lease over month to month, so he is for sure to get the money from you for a year.

[ScottGem]

Generally a 2 month buyout is reasonable. The only reason you would lose your deposit is if you didn't pay your rental or you left damages that needed to be repaired.

If the landlord is willing to terminate the lease allowing you to go month to month for a higher rental you will be lucky.