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  1. #1
    Join Date
    Nov 2007
    Posts
    7

    Default Terminating a Lease Before Moving In, in California

    I have an issue. I was part of the mortgage "fall out" in california. Our interest rates continued to rise to the point where we couldn't afford it anymore. I made the decision to stop paying my mortgage so that I could have the money for a deposit on a rental property. Keep in mind that I exhausted all efforts to refinance and re structure our loan to no avail. We found a rental property, applied, and signed a 12 month lease. Security and 1st month's rent were paid in full. The night before we were to move out of our home and into the rental, our mortgage company called and begged us to work with them and re structure the loan. Where were they before when I called 30 times?? That night, they restructured our loan with a payment that was what our rent was going to be. Of course, we decided to stay in our home. I immediately called the landlord and told them. They were fine stating that I had already given them 2 month's rent, they would just need to rent it out within the 2 months. Well, 2 months are approaching and they haven't rented it out. The landlord now says we owe the remaining 10 months no matter what. I was only trying to do what was best for my family. Being able to stay in our home is what was best for my family. My question is can the landlord sue me for the 10 month's rent? They did have ample time to rent the property out after I gave them my notice. We never moved in! Please help! Thank you!

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Terminating a Lease Before Moving In, in California

    They are expected to take reasonable measures to mitigate their losses - that is, they have to try to rent the property. If they fail to do so and sue you, you can raise the defense that they failed to mitigate their damages. The catch for you is if they have multiple units (e.g., if it's an apartment building), they can rent every other unit out first. It is also possible that in some markets, despite diligent efforts to rent, a property may remain vacant for many months.

  3. #3
    Join Date
    Nov 2007
    Posts
    7

    Default Re: Terminating a Lease Before Moving In, in California

    Thank you. It is actually a home rental. It is not part of an apartment complex. Could I still use the same defense that they had enough notice to rent it out? They had nearly two months.

  4. #4
    panther10758 Guest

    Default Re: Terminating a Lease Before Moving In, in California

    You are bound by terms of lease. If they made reasonable effort to rent home your dead in the water. Can you prove they made no effort? what you should have done was agreed in writing! They can sue you for any unpaid rent until lease expires or they find new tenant

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Terminating a Lease Before Moving In, in California

    There is no guarantee that two months will be sufficient to find a new tenant.

  6. #6
    Join Date
    Nov 2007
    Posts
    7

    Default Re: Terminating a Lease Before Moving In, in California

    I notified them on the 1st of November. They waited two weeks before advertising the property again. Shouldn't they have placed the add immediately after I gave them notice? I don't even have the keys. The ad was placed 1 week before Thanksgiving.

  7. #7
    panther10758 Guest

    Default Re: Terminating a Lease Before Moving In, in California

    With Holidays in there I dont see two weeks being a justified arguement. Wha tyou might do is work out some sort of deal with Landlord to close out lease. This will likely involve your paying several months rent but if he takes you to court he will win.

  8. #8
    Join Date
    Nov 2007
    Posts
    7

    Default Re: Terminating a Lease Before Moving In, in California

    Thank you all for your responses. I truly appreciate all of the advice. I guess I am just in a bad place. I don't think that anyone in my situation would have walked away from the home that they worked so hard to get. It was just horrible timing. There is no way that anyone in my situation would have given up their home. I can just hope that the home is rented out before Jan. 1st.

  9. #9
    Join Date
    Nov 2007
    Posts
    7

    Default Re: Terminating a Lease Before Moving In, in California

    Ok. The landlord found a tenant. They move in on January 15th. I had paid November and December's rent. They rented the property for $100 less per month. They are now coming after me for 1/2 of January's rent and the $100 difference times 10 months. Can they do this? The new tenant signed the lease this past weekend. Doesn't their new lease replace mine? They technically couldn't lease a property that was already leased, right? If I have to pay half of the January rent, I understand, but the $100 difference seems ridiculous. I even offered to pay for some of the advertising. I even asked the landlord if I could have the keys to the property until January 15th and she refused. Why would I have to pay 1/2 rent and the difference without me having possession of the property? Do I have any ground to stand on?

    Any ideas?

    Thanks!

  10. #10
    panther10758 Guest

    Default Re: Terminating a Lease Before Moving In, in California

    I somehow doubt they can legally collect the extra $1000.00 but since your lease agreement was for that amount its possible. However they can ask you to pay the half month in Jan that property was not rented

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