When Should You Allow a Tenant To Break Their Lease

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As property owners, we want as much stability as possible when we rent our property to a tenant. On rare occasions will we sign a lease for less than one year or allow tenants to break a lease unless they have a very good reason.
Sometimes, however, tenants want to break their lease and move out before the contract expires. There are different reasons for that of course and there will be penalties if they do that, but there are reasons when we allow a tenant to break their lease without a penalty.

1. Job transfer

There can be a case when a tenant gets a job transfer. This is not always the tenant’s fault of course. Their company is the one who decides where to send them and most of the time they have no control at all or very little control over where the company sends them. So there is really no reason trying to enforce your contract here. It is very unlikely that any sitting judge would actually allow you to do so anyway.
However, it is suggested to place a clause in your lease that a tenant can break a lease due to a job transfer as long as the transfer is over 50 miles (80Km) away.

2. They lost their job

If a tenant loses their job and can’t find another one or any other way to earn income, it would be a sensible thing to let them move on. Since they have no income anyway, your relationship will likely become more strained and they lose more and more of their resources.

3. Extraordinary circumstances

Bad things can happen to everyone. People get divorced, people get diagnosed with cancer or some type of misfortune. These types of circumstances can change they way people look at life. Rent is not important for someone fighting for his life. In cases like that, it better to let them move on.

4. They are just annoying

Some tenants just end up being annoying. They might have seemed like great tenants when you first met them, but once they move in, all they do is complain constantly and they are even late with the rent. In this case, it is sometimes best to try to make them move and let them out of their lease.

MLS Acobir, is the most preferred property list in Panama. Please contact us for all of your Panama Relocation and real estate needs.



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