As a Las Vegas landlord, there will be occasions in which your tenant will want to break their lease early. When this happens, it can put you in a tough position for several reasons. Not only do you have to worry about filling the vacancy sooner than expected, but now you must figure out what kinds of penalties you are allowed to impose on your tenant. Are you entitled to collect damages when your tenant breaks their lease? Let’s take a deeper dive into the subject.
Legal Reasons Tenants Can Break Their Lease Early
Having a tenant leave early in not an ideal situation, but there are certain situations where a tenant can legally leave without being penalized. These reasons include:
Military Deployment
If your tenant is called for active duty or is ordered to change stations while living in your rental property, those in the U.S. Armed Forces, National Guard, the Public Health Service, and other government service groups are allowed to break their lease early under the Servicemembers Civil Relief Act. However, the tenant is still required to give a 30-day notice.
Victim of Domestic Violence
In some states, including Nevada, victims of domestic violence, sexual assault, or unlawful harassment or stalking are allowed to break their lease early if staying within the residence puts their safety at risk. If your tenant sends you a signed termination of lease letter with this stated reason, you cannot legally collect damages in Nevada.
Uninhabitable Living Conditions
One of the most crucial obligations as a landlord is to provide a safe living environment for your tenants. When the rental unit becomes unsafe or does not have the minimum safety standards in place required to make the space habitable, your tenant can break the lease without penalties. Examples of unlivable conditions include lack of basic utilities (water, gas, electric, etc.), non-operating plumbing systems, uncontrolled pest or rodent infestations, and leaking roofs or walls.
Violation of Privacy
Although you are the landlord of the property, you do not have the right to enter the rental unit whenever you want. Unless there’s an emergency, you must give at least 24 hours notice before entering the property. Even after giving notice, landlords must have a legitimate reason for entering a rental property. If you continue to enter the unit without notice after your tenant sends a formal warning in writing to stop, they can break the lease.
These are some of the reasons a tenant can leave before their lease expires without penalty. However, there are situations when your tenant will break the lease early for other reasons and you may be able to collect compensation.
Other Reasons Tenants Will Break Their Lease
Outside of the ones already mentioned, there will be times your tenant needs to leave before their lease is up. As a landlord, you cannot force your tenants to stay or pay for the remainder of the lease in full, but you may be able to collect rent from the tenant until the vacancy is filled.
Some additional reasons your tenants might leave early include:
- Job Transfer to Another City or State
- Inability to Afford Rent Due to Loss of Job
- Tenant Moving In With Significant Other or Family Member
- Divorce or Legal Separation
- Illness or Special Care Requirements
When your tenant claims one of these reasons for having to break the lease early, Nevada law requires that you (as the landlord) take reasonable steps to “mitigate damages” or find another tenant as quickly as possible.
Nevada Landlord Requirements to Mitigate Damages
No matter what the reason is for your tenant leaving early, Nevada law states that landlords must take every reasonable step to fill the vacancy with a qualified tenant as soon as possible. However, landlords are not required to rent the unit for less than its fair market value. Additionally, landlords do not have to immediately rent out the unit if it means putting off other essential business priorities.
If the rental market is good and you are able to find a qualified tenant to fill the vacancy in a short amount of time, the tenant that broke the lease early will be off the hook quickly. But if you can’t secure an acceptable tenant immediately, the initial tenant is liable to pay rent for each month that the unit is vacant for the remainder of the lease. You may even be able to add expenses, such as advertising, to your tenant’s bill. Enlisting the services of an experienced Las Vegas property management company can help you determine what expenses you can add for each situation while dealing with tenants in Las Vegas, North Las Vegas, & Henderson.
It’s important to note that you don’t have to collect from your tenant if they break their lease early. You are entitled to bill them for rent if the unit stays vacant despite your best efforts to fill the rental property, but you can use your discretion as a landlord. In some cases, especially with the loss of a job or an illness, it may be better for both parties to allow the tenant to leave without attempting to collect damages. Again, this is at the landlord’s discretion.
Professional Property Management and Lease Violations
When it comes to lease agreements, a professional property manager knows the ins and outs of handling just about every scenario that may come up for landlords. For Las Vegas, North Las Vegas, and Henderson landlords, having a knowledgeable and reputable Las Vegas property management company by your side to help assist you with writing and/or revising your lease agreement to make sure you’re protected in situations, such as a tenant leaving early or a tenant breaking the terms of the agreed upon lease agreement, is invaluable.
If you would like to learn more about our property management services or how we can help you with tenants who violate their lease agreements, contact the Black & Cherry property management team today!
