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  1. #1

    Default Replacement Tenant is Paying a Higher Rent than the Existing Tenant

    My question involves landlord-tenant law in the State of: California.

    I'm not sophisticated in the laws, but my sister who owns a business condo asked an intriguing question. For three years she has been renting out her business condo for $2,000 per month. In the past six months the person renting it has fallen behind $1250/month in her rent so $1,240 x 6 months is owed. Her lease runs out in four months and the woman asked my sister to find another tenant.

    My sister did!! She found a new tenant for a whopping $3,000 per month. My sister's husband thinks that she will owe or have to credit the existing tenant $1,000 per month because his lease was to expire in June. What a mess !

    Doesn't seem fair that tenant #1 wants out of his lease, is behind in her rent (but promises to eventually pay), and my sister signs a new lease at a higher rent and tenant #1 gets a benefit.

    My sister didn't evict tenant #1 because she was pleasant and made a variety of excuses and she didn't think she'd find another tenant so "some money was better than no money".

    Should she get the existing tenant to sign a statement that he wants his lease terminated four months early? Is it true that with a new tenant and new lease the tenant asking to leave gets a four month benefit of a the new tenant's lease?

  2. #2
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    Default Re: Replacement Tenant is Paying a Higher Rent than the Existing Tenant

    If this is going to be a subtenant of the original tenant, then the profit goes to the original tenant.

    If this is going to involve the release of the former tenant, and an entirely new lease with the new tenant, then the old tenant will not be in the picture.

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