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About the Author --- Will Nesbitt is the principal broker of Nesbitt Realty and maintains Condo Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County. |
I should know the answer to this question but does the 2 year lease actually assure me of rental income for that time period? In other words, if the tenant breaks the lease after 12 months do I have any financial recourse/protection or do I simply take my losses and start looking for another tenant?
Yes . . . and no. The way our leases (and most leases in the Commonwealth of Virginia) are written, the lease is structured so that the tenant is agreeing to pay a large sum of money for a fixed period of occupancy. That large sum is then divided into monthly payments. For example, if the monthly rent is $1,000 then a tenant is promising to pay $12,000 for a one year lease. For a two year lease of the same property the tenant is agreeing to pay $24,000 but will make monthly payments of $1000. The promise is to pay $12,000 not to pay $1,000 per month and this is an important distinction in the law because it means that if the tenant breaks the lease he is still obligated to pay the entire lease amount. But here's where it gets a little complicated. If the tenant breaches his contract and defaults on the lease, then the landlord can sue and recover the entire amount left on the lease from the tenant. At the same time, the landlord is obligated to attempt to mitigate his damages. That means that if the tenant does breach the lease the landlord must try to find a replacement tenant. However, the tenant is responsible for all the landlord's damages. For example, if there is an expense for finding a new tenant, the old tenant must pay that cost. If there is any vacancy between the tenants, the old tenant must pay that to cover the landlord's loss. And a court will back the landlord up to that point. However, if and when a new tenant is identified then the tenant is off the hook for any further debt which may be left on the lease. The court will not allow the landlord to let a property sit vacant just because the tenant breached a lease. So the tenant has an obligation to find a new tenant and to minimize vacancy and to pay for any vacancy. But the landlord has an obligation to mitigate his damages. In theory the tenant has obligated himself to pay two years of rent, but in reality things happen and we already have established practices to extract a tenant from a lease. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.Dear Sally, I'm happy to provide consultations and advice at no charge. As a rental agent I am the most helpful to renters who know what they want but don't want to spend time and energy chasing dead-ends or stuck in traffic. If you know where you will be working, how many bedrooms you need, what amenities you enjoy, my expertise allows me to very quickly identify a short list of properties that will be of interest to you. I am constantly touring homes, properties and neighborhoods. I know the area's traffic patterns. I know Northern Virginia. You're probably not asking me to do this---but in case you are---I must make clear that I am not available to spend time and resources trying to give you my expertise. It would be impossible for me to do this in a weekend anyway. Lastly, from a business standpoint, it is not an effective use of my skills or your time to expend resources and time driving around to neighborhoods and going to condo communities in June on the hope that you will will rent something in November. Again, I'm available to chat and offer free advice and provide direction if you would like to follow up with your own footwork. Thanks much for the opportunity. It is appreciated. Sincerely, Will Nesbitt Condo Alexandria \ Nesbitt Realty Alexandria VA 703 765 0300 ext. 224 888 783 6391 (fax)Hello Will,We are actually interested in working with an agent, as opposed to trying to do the leg work ourselves. My husband is currently stationed in Okinawa, Japan. We are awaiting orders that originally had us relocating this summer. Now it looks more like late October/November, following the new fiscal year.As mentioned, we will be stateside and staying in DC on Tuesday and Wednesday, June 22/23rd and would like to commit to meeting with an agent who handles rentals. Realizing that one may not know what units will become available in November, it would still provide a head start in preparing for our relocation. We are not familiar with the neighborhoods other than online research and bits of information provided by friends. My husband does wish to be (at least) within walking distance of the metro. We are interested in checking out Old Town Alexandria and other suggested areas.Thank you for your time.Regards,Sally