Best Practices When a Tenant Wants Out of Their Lease
Under Colorado law, tenants must pay rent for their lease whether or not they live in the rental unit. Tenants who break their lease need to read their rental agreement carefully. The last thing they should do is move out and hope the property manager gets a new tenant quickly. Tenants renting from DenCO Property Management (DenCO) wanting to break their lease must complete a “Notice to Vacate” form and pay DenCO a termination fee to cover finding a new tenant. DenCO believes it is appropriate to find a replacement when a tenant asks to break their lease. However, the timing of their request is critical. For example, breaking a lease during Christmas increases the difficulty of finding a replacement.
Breaking Lease Exceptions
Below are a few exceptions for tenants under Colorado law to break their lease.
Active Military Duty
When activated, federal law allows tenants who are members of the military, the National Oceanic and Atmospheric Administration, the Public Health Service, and the National Guard to break their lease. The leaseholder must give their property manager written notice, and once delivered, their tenancy ends 30 days after the following rent due date.
Domestic Violence Victim
Colorado law provides early termination rights for tenants who are victims of domestic violence. They must present the property manager with a copy of the police report to start the process.
Poor Property Management Practices
Tenants in Colorado do not have to tolerate landlords who do not provide habitable housing. They are “constructively evicted” and no longer required to pay rent because of nonfunctioning heating and cooling systems, leaky roofs, poor plumbing, or gas leaks. They are also constructively evicted when landlords constantly violate a tenant’s privacy rights by showing up repeatedly unannounced or harassing tenants.
Abandonment
Below are ways property managers to determine if a renter has left a property. Colorado has specific time limits and protocols for handling the belongings left behind if abandoned. Click here for the Colorado statute.
Paying Rent
The property is not abandoned if the tenant pays rent. They could be on an extended vacation, business trip, or sabbatical. Since they are paying rent, the property manager should ensure the property is all right while the tenants are gone.
Call Emergency Contacts
If the tenant stops paying rent, first call their emergency contacts to ensure everyone is okay. Inform their friends or family about the situation and hope they will contact the tenant. Call back to determine if the renter has responded or not.
Check for Utility Shut-Offs
After giving a 24-hour inspection notice, property managers enter the property and see if utilities have terminated electrical, gas, and water service. In the winter, they should get the heat back on to protect the property’s plumbing system.
Talk to Neighbors
Ask the neighbors if they have recently seen the tenant enter the property.
Inventory and Personal Property Storage
List the tenant’s belongings, take pictures, and note each item. Store the belongings safely until the tenant retrieves them or until the required time limit has passed.
Tenant Notification
Property managers should write to the tenant about pickup deadlines, property location, storage cost, and what will happen to their property if it remains unclaimed.
The property manager will use the tenant’s security deposit for any outstanding rent to recover any rental property income loss. If the deposit is insufficient, management can sue the tenant in small claims court for up to $7,500. They can take their case to Colorado county courts for more significant amounts.
Tenant Responsibilities When Breaking A Lease
After filling out the “Notice To Vacate” document and paying the termination fee, the tenants have the following responsibilities. The tenant is responsible for rent and utilities for any day the unit is vacant.
Carpet Cleaning
Carpets need to be professionally steam-cleaned. The lease may specify a specific steam cleaning company to contact for this service. If not, the steaming cleaning company must have truck-mounted steam-generating machinery.
Damage to the Apartment
Any damage caused by their tenancy needs to be repaired. The property management company will arrange all repairs.
Cleaning of the Rental
We recommended that the renter hire a professional cleaning service to “deep clean” their apartment or home. If the tenant leaves the premises dirty, the property management team will inspect the rental and any cleaning needs listed. DenCO will hire a professional cleaning service to clean the space at the tenant’s expense.
How to Avoid Broken Leases
DenCO avoids broken leases and abandonment because we believe in strong leases and comprehensive tenant screening. However, we understand that sometimes tenants need to break their leases and move. It is good business to help renters and find new tenants ASAP.
Property owners, if you are looking for a professional property management company to handle all rental renewal issues, please consider DenCO. DenCO manages over 150 rentals in the DU, Washington Park, and other neighborhoods in the Denver area and has been in business since 1990. Call us at 303-722-9688 or click here to complete a contact us form.
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