What Rent and Fees Do You Owe After Breaking a Lease
My question involves landlord-tenant law in the State of: Indiana
Good Morning,
I am a tenant and I broke my lease early. I was originally in another unit with the Management company and that lease had an Early Termination Addendum which included: being charged rent until rerented and forfeiture of entire security deposit. A month later I was moved into another unit and the Management company had me move to another unit. When they did this, they had me sign a brand new lease which is written differently than the first AND DID NOT include the Early Termination Addendum. This rental agreement has incorrect term dates (Oct. 1, 2013-Oct 31, 2014) and the rental amount is incorrect as well ($240 a month instead of $625). Anyway, there is no Early Termination Addendum; however there is a section labelled: Service Charges. It says Tenant hereby agrees that he will pay on demand service charges as follows for extra services required of Landlord by Tenant's failure to pay rent as agreed: (a) For lease termination more than two months before Lease expiration: One month's rent.
Is "Service Charge" the same as Early Termination Clause? Does this indicate I am must pay one month's rent to break lease?
I am trying to do the right thing and just want to be fair. However, the Management Company has indicated I was not getting my security deposit back due to early termination (They are reverting back to 1st lease)
Thank you
Re: What Rent and Fees Do You Owe After Breaking a Lease
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Girlwonder72
I was originally in another unit with the Management company and that lease had an Early Termination Addendum which included:....
That lease was terminated and is not relevant to your current lease.
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Quoting Girlwonder72
When they did this, they had me sign a brand new lease....
That's the only lease that matters.
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Quoting Girlwonder72
This rental agreement has incorrect term dates (Oct. 1, 2013-Oct 31, 2014)
A clerical error in the dates of the lease is not an issue, if the parties both understand and accept the correct dates. Is there an actual disagreement as to the dates the lease is meant to cover?
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Quoting Girlwonder72
...and the rental amount is incorrect as well ($240 a month instead of $625).
That's essentially the same thing. Had you insisted upon paying $240 per month from day one, you might have an argument that you thought that was the actual rent and not a clerical error, but you appear to be stating that there is complete agreement between you and your landlord that the monthly rent is $625, and that's the amount you have been paying.
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Quoting Girlwonder72
Anyway, there is no Early Termination Addendum; however there is a section labelled: Service Charges.
The text that comes under a heading is far more instructive than a heading, by itself.
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Quoting Girlwonder72
It says Tenant hereby agrees that he will pay on demand service charges as follows for extra services required of Landlord by Tenant's failure to pay rent as agreed: (a) For lease termination more than two months before Lease expiration: One month's rent.
That language does not suggest to me that it's an early termination clause. It suggests that you have agreed to pay a month's rent for the landlord's costs in trying to find a replacement tenant if you terminate the lease more than two months before its expiration. If you believe that the landlord might accept that fee as an early termination fee, ask your landlord's management company if it will do so.
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Quoting Girlwonder72
However, the Management Company has indicated I was not getting my security deposit back due to early termination (They are reverting back to 1st lease)
Oh... so it's too late to try to work this out in advance.
If they are treating the security deposit as the "service charge" defined in the second lease, then there's nothing in their withholding of that money that suggests that they are 'reverting back' to the first lease.
You should ask the management company to clarify and, if you don't get a sufficient explanation, have the entire lease reviewed by a landlord-tenant lawyer in your state. If you qualify, you may be able to get a legal aid office to review the lease and advise you.
Re: What Rent and Fees Do You Owe After Breaking a Lease
Thank you, The management company texted me on Monday and stated $625 for November is due as they haven't rented property yet. Also, they have instructed me I was forfeiting my security deposit moving out early. This is where they revert to lease one and not the current one.
Re: What Rent and Fees Do You Owe After Breaking a Lease
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Quoting
Girlwonder72
Thank you, The management company texted me on Monday and stated $625 for November is due as they haven't rented property yet. Also, they have instructed me I was forfeiting my security deposit moving out early. This is where they revert to lease one and not the current one.
They have every right to keep your deposit until the unit is re-rented...particularly if you do not keep paying the rent. What they do not have the right to do is to keep your deposit if there were no damages, AND you continue to pay the rent until the unit is re-rented.
If you do not continue to pay the rent, ultimately what is going to happen is that once the unit is re-rented, they are going to apply any non paid rent and damages against your deposit, and if that adds up to more than your deposit, then they are going to sue you for the balance.
Re: What Rent and Fees Do You Owe After Breaking a Lease
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Quoting
Girlwonder72
I am trying to do the right thing and just want to be fair. However, the Management Company has indicated I was not getting my security deposit back due to early termination (They are reverting back to 1st lease)
There's no question that your lease is a mess but it might not matter.
Indiana has long ruled that a residential landlord has a duty to mitigate his damages by using due diligence to re-rent as soon as soon as reasonably possible.
If you moved out a certain date and refused to pay any more rent the landlord would be entitled to rent plus cost to prepare and advertise through the re-rent date.
If your security deposit was enough to cover those losses then, indeed, you would not get it back. If it was not enough to cover those costs then the landlord could sue you for the balance of his loss.
"The doctrine of mitigation of damages creates an obligation on the part of the landlord to use such diligence as would be exercised by a reasonably prudent man under similar circumstances to re-let the premises, if possible, in order to mitigate damages resulting from the tenant's breach of lease. State v. Boyle (1976), 168 Ind. App. 643, 646, 344 N.E.2d 302, 304."
Quoted from: https://scholar.google.com/scholar_c...33766294597903
Re: What Rent and Fees Do You Owe After Breaking a Lease
Thank you!
I guess my question is the definition of service charge in my lease. I am trying to determine if this can be construed as an Early Termination.
Service Charges. It says "Tenant hereby agrees that he will pay on demand service charges as follows for extra services required of Landlord by Tenant's failure to pay rent as agreed": (a) For lease termination more than two months before Lease expiration: One month's rent.
Re: What Rent and Fees Do You Owe After Breaking a Lease
Continuance of issue...
Indiana has a 45 day rule that the Landlord must send security deposit and/or letter on how security deposit was used/applied. The Landlord has not sent the letter per law (should have done so by Dec. 4th). They have continued to send emails and phone calls asking for the "arrearages" for the lease that I left early. I sought out an attorney who instructed me to pay nothing as the property management company is reverting to a previous lease with a "early termination clause", the current lease I am under does not have this clause but has a modification clause (stating this lease supersedes all others). The property company is now threatening to sue me for the arrearages, I am not sure how this whole mess plays out now that they didn't not follow the 45 day security deposit rule.
Re: What Rent and Fees Do You Owe After Breaking a Lease
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Quoting
Girlwonder72
Continuance of issue...
Indiana has a 45 day rule that the Landlord must send security deposit and/or letter on how security deposit was used/applied. The Landlord has not sent the letter per law (should have done so by Dec. 4th).
Sorry, but the "law" doesn't say "letter." All IC 32-31-3-12 requires is that the landlord provide "the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession."
See:
http://iga.in.gov/legislative/laws/2...apters/003/pdf
An email is a "written" notice and is admissable in court. Besides, you acknowledge that you received the demand for the arrearages.
By the way, the date that you moved out might not be the date that you delivered possession.
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Quoting
Girlwonder72
I sought out an attorney who instructed me to pay nothing as the property management company is reverting to a previous lease with a "early termination clause", the current lease I am under does not have this clause but has a modification clause (stating this lease supersedes all others). The property company is now threatening to sue me for the arrearages, I am not sure how this whole mess plays out now that they didn't not follow the 45 day security deposit rule.
Did you receive the first demand for arrearages within the 45 days?
Even if you didn't, I don't believe that the security deposit deposit was designed to protect a tenant who wrongfully breaches the lease before it's expiration.
Come back to this thread if you do get sued and we can continue the discussion once you know how much you get sued for and what the exact allegations are in the complaint.
Re: Early Termination/Lease Errors/Suit
Use counsel to improve your odds..and sue for deposit and attorney costs ?
If the LL is as bad as you suggest, your attorney should make fertilizer out of LL?
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