How to Collect Rent If a Tenant Breaks a Lease

Written by Jenna Marie ; Updated December 14, 2018

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When your tenant breaks a lease by leaving the rental property before the term expires, you have the right to collect the money you are owed. A lease agreement with a fixed term means the tenant owes you rent until you can lease the property out again to a qualified renter or the lease expires, whichever happens first. Whether the tenant gave you notice or simply vacated in secret, the methods for collecting rent are the same.

1. Start a file for all written communication with the tenant that concerns the lease termination issue. If the tenant wrote you a notice about breaking the lease, keep that in the file. If the tenant left without warning, type up a short note about when you discovered the abandoned property and any actions you took to contact the tenant. Write down all times, dates, phone numbers and notes of any phone conversations you have with the tenant. Keep all this information, and any future correspondence, in your file. You will need it when you attend a court hearing to recover any money owed.
2. Send a written notice to the tenant to remind him that he must pay the rent until the lease term expires or you rent out the property to another tenant. Let him know that he should pay the rent on time, as usual, until you let him know about the new tenancy. Remind him that if he doesn't pay the rent, as outlined in your lease agreement, you will have no choice but to pursue legal action. State that even though he does not live at the rental property anymore, he is still responsible for rent. Sign and date the letter, and keep a copy in your file. Hand deliver the letter or send it by certified or registered return mail to his current or last known address.
3. Inspect the property before the tenant leaves, if you can. Fill out an inspection checklist and discuss with the tenant any damages or issues with the property before he leaves. If the tenant abandoned the property, do an inspection on your own and note any damages. Take pictures of anything you find that needs repaired beyond normal wear and tear. Include a copy of the checklist and all photos in your file.
4. Prepare your property for rent and start advertising for a new renter. Keep copies of any ads you place and write a list of any prospective tenants you interview. Place this written information in your file. Rent out the property as soon as you can, within reason to a qualified applicant, to show the court you did your duty as a landlord and tried to minimize your financial losses. Note the day the new tenant moved into the rental property in your file.
5. Calculate the amount of rent the original tenant owes in rent from the time the rent went unpaid up to the day the new tenant moved in. Add any amount owed for damages to the rental property from the original tenant. Deduct the total amount from the original tenant's security deposit. The remaining amount is the total that the original tenant owes you. Keep these calculations in your file.
6. Send a written notice to the tenant with the total amount due, an itemized list of the damages and copies of all receipts that show repair work. List how you deducted each amount from the original tenant's security deposit. Let the tenant know that the amount owed is due within 10 days of receiving the notice. If the funds are not collected in time, you will have no choice but to file with the small claims court. Sign and date the letter, then keep a copy for yourself. Hand-deliver the letter or send it via certified or registered return mail.
7. Collect the money from the original tenant if he pays by the deadline. If he does not, file a civil suit in the county clerk's office. The court will contact the original tenant and set a date for a hearing. You and the tenant will both appear to present your information to a judge. Bring your file with all the written evidence and documentation of the process. It will help the judge see the steps you've taken to collect the money on your own and that you have been diligent and reasonable during the process.
8. Await the judgment and hope that the judge will find in your favor. If so, the judge will work out whether the tenant will pay you monthly until the debt is paid, garnish the tenant's paycheck or other means of collection. Always abide by whatever payment plan the judge orders from the tenant.

Tip

When you are signing a lease agreement with a new tenant, take the time to explain what happens when a tenant breaks your lease agreement. Specifically review the clauses concerning breaking a lease with the new tenant so he won't be surprised at the consequences.