tenant stuck in a lease?
Are there any options for getting out of a lease before the lease is up? I have tried subleasing, selling the business, etc… but no success because the building is over priced for the area however. I have been leasing for almost seven years and hit some hard business times. For approximately 3 months I have been paying less than the full rent after discussing my financial situation with my building manager but on Monday was sent a letter informing intent to evict. I do not have the money in any way, shape or form to pay for an early buyout (28K) but can come up with almost half of the money for that to occur. I do not want to file for bankruptcy (as my attorney suggested) but feel it may be the only solution to stop the management company from filing a law suit against me. Any suggestions?
December 1st, 2008 at 11:37 am
Offer half. Explain to them that by the time they sue you and you hire a lawyer to defend yourself and eventually to file bankruptcy, there will be nothing left for them to “win”.
December 1st, 2008 at 2:03 pm
I’ve been in the apartment business as a property manager for 15 years and I can tell you that you need to read your lease very carefully because it will depend on the company as to their lease break options.
Make sure to discuss all your options with the property manager as laid out in your lease. But it seems to me that they intend to evict and have every right to do so if you cannot come up with the buyout price. There really are no other options if they are not stated in the lease. Once eviction is started you have the option to do a ‘pay and stay’. This means that you can still avoid eviction but only if you pay the full balance of your rent plus all court and attorney fees and any late fees that have accrued. The company will then dismiss your case and you can remain in the apartment. But it sounds to me as if you are not going to have the funds… so depending on the state your court date could be anywhere from 2 weeks to a month before you go to court. Once you are seen before the judge and you don’t have the money required a ‘writ’ will be issued giving you three days to vacate the premises.
When it comes to this sort of thing many people think that they can just get out of their agreement easily when they can’t pay but this business is just like any other and you are bound by the terms of your contract and will have to pay or face legal action. You may need to file bankruptcy to stop the eviction in which case it could take 6 months or longer before they can remove you from the apartment during which time you will not have to pay anything… but the end result is that your credit will be affected negatively with the bankruptcy and the negative rental history. If you can pay that is your best bet.
I wish I could be of more help but you are bound by the terms of the contract.
Good luck
December 4th, 2008 at 12:09 am
Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It’s available in most US cities, I highly suggest you check it out.
Best of Luck.