What Is A Reletting Charge and How Does It Work?
A reletting charge is an amount of money that a landlord may charge a tenant for breaking their lease early. It is a fee that covers the cost of finding a new tenant to occupy the space that the departing tenant is leaving behind. Typically, the reletting charge is a percentage of the monthly rent, and the amount can vary depending on the terms of the lease agreement.
When a tenant signs a lease, they are entering into a legally binding agreement to occupy the property for a specific amount of time. If they break the lease early, the landlord has the option to charge a reletting fee to recoup the costs associated with finding a new tenant to take over the lease.
When a tenant notifies a landlord that they want to end their lease early, the landlord will usually start looking for a new tenant as soon as possible. The reletting charge will cover the cost of advertising, showing the property, and screening potential tenants. Once a new tenant is found, the original tenant will likely be released from their lease obligations, and the new tenant will take over the lease and begin paying rent.
The amount of the reletting fee can vary depending on the terms of the lease agreement. Some lease agreements will include a specific dollar amount or percentage of monthly rent that the tenant must pay if they break the lease early. In other cases, the landlord may negotiate the fee with the tenant when they decide to end their lease early.
The Reletting Charge vs. Other Move-out Fees
It is important to understand that a reletting charge is different from other move-out fees that a tenant may be required to pay when they leave a rental property. A security deposit is one example of a move-out fee that a tenant may be required to pay when they move out. A security deposit is collected by the landlord at the beginning of the lease as a way to cover any damages that may occur during the tenancy. If the property is left in good condition, the security deposit is usually returned to the tenant when they move out.
Another common move-out fee is a cleaning fee. A cleaning fee is charged if the tenant has not left the property in a clean and tidy condition. This fee covers the cost of hiring a cleaning service to clean the property after the tenant moves out.
A reletting charge, on the other hand, is charged when a tenant breaks their lease early and the landlord incurs costs associated with finding a new tenant to take over the lease.
Q1: Is a reletting charge legal?
Yes, a reletting charge is legal in most states. However, the landlord must disclose the fee in the lease agreement, and the fee must not be excessive.
Q2: How much is a typical reletting charge?
The amount of a reletting charge can vary depending on the terms of the lease agreement. It is typically a percentage of the monthly rent or a specific dollar amount.
Q3: Can a reletting charge be waived?
In some cases, a landlord may be willing to waive the reletting charge if the tenant can find a suitable replacement tenant on their own.
Q4: What if the property is leased to another tenant before the original lease has ended?
If the property is leased to another tenant before the original lease has ended, the original tenant will likely be released from their lease obligations and will not be charged a reletting fee.
Q5: Can a reletting charge be deducted from the security deposit?
No, a reletting charge is separate from the security deposit and cannot be deducted from it.