Is it Lease Termination Fee or Reletting Fee that's the question!

Created by Paul Hoffman, Modified on Tue, Jul 18, 2023 at 7:06 PM by Paul Hoffman

I wanted to take a moment and let you know that we have updated our Lease Termination & Reletting Fee (Early Move Out Fee) policy.

· The Lease Termination Fee has been reduced to 1 month’s Rent. YAY! HOORAY! ?

o This has been updated in ResMan & BlueMoon.

· The following States removed the Early Move-Out Fee from the lease, and as a result, we updated to ResMan to remove this charge.

o Arizona

o North Carolina

o Florida

· Reletting Fee / Early Move Out still applies for the following properties:

o Texas

o Georgia

I also wanted to take a moment and review an update on when to charge the Lease Termination Fee or Reletting Fee/Early Move Out Fee.

· Lease Termination Fee

o Fee can only be charged if all the following items have been met:

§ Resident provides a 60-day written notice; and

§ Pays rent and all other charges through move-out date; and

§ Pay a Lease Termination Fee equal to 1 Month’s Rent; and

§ Pay the Termination Fee within 30-days of submitting their notice to vacate; and

§ Is not in default of their lease.

o Please refer to SOP 320 for additional information on the Early Termination of the Lease.

· Reletting Fee / Early Move-Out Fee

o This fee is only charged if one of the following occurs:

§ (A) fail to move in, or fail to give written move-out notice as required in lease; or

§ (B) move out without paying Rent in full for the entire Lease term or renewal period; or

§ (C) Move out at our demand because of your default; or

§ (D) are judicially evicted.

o What is the fee to charge?

§ 85% of 1 Month’s Rent.

§ ResMan will auto-check this when entering the Notice to Vacate.

· Leave checked unless your DOO/VP has approved otherwise.

o Can I charge Rent for the Notice to Vacate Period?

§ No.

· The Lease specifically considers this accelerated rent.

§ S2 does not Accelerate rent.

o Please refer to SOP 320 for additional information on the Early Termination of the Lease.

Florida Properties - Review the lease to determine which option the resident selected on the "Choice of Damages, Early Termination Addendum".

Below are some real-life scenarios that you may encounter and the subsequent action you should take.

Lease Termination/Buy-Out Requirements	Answer	Action
The Resident Provided a 60-day Written notice	No	Do *not* charge the Lease Termination Fee
The Resident paid pay rent through a 60-day notice	No	No action is required due to non-compliance with the above
The Resident paid the Lease Termination Fee	No	No action is required due to non-compliance with the above
Is the Resident in other default of the Lease?	Yes	No action is required due to non-compliance with the above

Lease Termination/Buy-Out Requirements	Answer	Action
The Resident Provided a 60-day Written notice	Yes	Charge the Lease Termination Fee
The Resident paid pay rent through a 60-day notice	No	If Charged, we will need to reverse the Lease Term Fee
The Resident paid the Lease Termination Fee	No	No action is required due to non-compliance with the above
Is the Resident in other default of the Lease?	No	No action is required due to non-compliance with the above

Lease Termination/Buy-Out Requirements	Answer	Action
The Resident Provided a 60-day Written notice	Yes	Charge the Lease Termination Fee
The Resident paid pay rent through a 60-day notice	Yes	No action is required as the above step was met
The Resident paid the Lease Termination Fee	No	If Charged, we will need to reverse the Lease Term Fee
Is the Resident in other default of the Lease?	No	No action is required due to non-compliance with the above

Lease Termination/Buy-Out Requirements	Answer	Action
The Resident Provided a 60-day Written notice	Yes	Charge the Lease Termination Fee
The Resident paid pay rent through a 60-day notice	Yes	No action is required as the above step was met
The Resident paid the Lease Termination Fee	Yes	No action is required as the above step was met
Is the Resident in other default of the Lease?	No	No action is required as the above step was met

Lease Termination/Buy-Out Requirements	Answer	Action
The Resident Provided a 60-day Written notice	Yes	Charge the Lease Termination Fee
The Resident paid pay rent through a 60-day notice	Yes	No action is required as the above step was met
The Resident paid the Lease Termination Fee	Yes	No action is required as the above step was met
Is the Resident in other default of the Lease?	Yes	Get with your DOO – but likely we will still allow the Lease Termination/Buy Out to commence