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minneb · May 25, 2012, 07:42 AM

Im a first time landlord who is renting out a townhome I own. I found some tenants rather quickly but just over a week after they signed the lease they wanted to break it due to the fact they couldn't get along. There is no language in the lease as to terms to break the lease. I offered them that I would keep a months rent from the deposit and the part of first months rent they had paid me and I would let them out of it. They agreed and I had them sign an agreement to those terms. Two months later I get an email from one of them telling me that she was told what I did was illegal and if I didn't repay them that she would take me to court.

Minnesota state law states: "Procedures for ending this kind of tenancy are generally written into the lease. Tenants with a definite term lease have to pay for the entire term no matter when they leave, unless the landlord agrees to accept new tenants who would take over the remaining payments. But some term leases have provisions allowing the tenant to "break" the lease. Often in such cases, the tenant is required to pay a "breaklease" fee - a sum of money and/or the tenant's security deposit. Such fees must be reasonable in amount and reflect the actual loss the landlord can be expected to suffer in the tenant moves out early."

At the time I thought I was being nice and letting them out of the lease.

Did I do this illegaly or not?

Thanks for any help or advice.

smoothy · May 25, 2012, 07:58 AM

Originally Posted by minneb

Im a first time landlord who is renting out a townhome I own. I found some tenants rather quickly but just over a week after they signed the lease they wanted to break it due to the fact they couldnt get along. There is no language in the lease as to terms to break the lease. I offered them that I would keep a months rent from the deposit and the part of first months rent they had paid me and I would let them out of it. They agreed and I had them sign an agreement to those terms. Two months later I get an email from one of them telling me that she was told what I did was illegal and if I didnt repay them that she would take me to court.

Minnesota state law states: "Procedures for ending this kind of tenancy are generally written into the lease. Tenants with a definite term lease have to pay for the entire term no matter when they leave, unless the landlord agrees to accept new tenants who would take over the remaining payments. But some term leases have provisions allowing the tenant to "break" the lease. Often in such cases, the tenant is required to pay a "breaklease" fee - a sum of money and/or the tenant's security deposit. Such fees must be reasonable in amount and reflect the actual loss the landlord can be expected to suffer in the tenant moves out early."

At the time I thought I was being nice and letting them out of the lease.

Did I do this illegaly or not?

Thanks for any help or advice.

I would tell them you will be countersueing them for the full value of the lease...

As far as I can tell, you did nothing wrong... they signed a lease, they broke a lease... they got off cheap under the agreement you let them out under.

I would not send them a dime. As soon as you get notice of a suit, file a countersuit for the full value of the lease against them...

I'm willing to bet they are blowing smoke.

However others will weigh in and give their opinions as well... some of them know far more than I do on this topic.

AK lawyer · May 25, 2012, 08:15 AM

Originally Posted by minneb

... Two months later I get an email from one of them telling me that she was told what I did was illegal and if I didnt repay them that she would take me to court. ...

Did they explain how they figured this was illegal? I agree with Smoothy. It appears they are blowing smoke.

minneb · May 25, 2012, 08:19 AM

Thanks for the quick answers, you guys are making me feel a lot better about the situation.

She didn't state how she thought it was illegal in the email at all, the only thing I could think someone is telling her is that its illegal to pay rent with a deposit in MN. But the money wasn't used to pay rent it was used to pay a fee to break the lease. That's all I can think of.

Thanks again for all the help

Fr_Chuck · May 25, 2012, 09:39 AM

Yes remember there are no "terms" to break the lease unless it is written into the lease or deal with service people getting transferred.

You made them a offer and they accepted, Often a fair offer is 1/2 of the rent still due.
So tell them to sue and that by violating the agreement, you will sue for the remainder of the rent due.
*** you can only sue to the point that you rented the apartment out.

If you have not already done so, spend 500 or so, and go to an attorney, get ready made eviction notices. Quit or pay notice , find out where housing court is and how to file for evictions.