Break of long term lease contract

[dusktilldawnman]

Unfortunately I have to break my lease contract next year because I have to undergo surgery overseas. If I terminate a 36 month lease after 24 months, can the landlord  hold me responsible for the 12 months rent remaining  under the lease or do I just loose my deposit (one month rent).

[tonray]

Technically yes...but the reality is if he rents the apartment before your lease term is up then the lease is terminated at that time.

 

If you are leaving and not returning I would not be concerned, perhaps you ca attempt to reason with him and explain the situation and offer your security deposit and maybe one  month additional to terminate early.

[steven100]

I would think you may lose your one month deposit ... as your breaking the lease agreement

Having said that ....  you need to check your contract and see if it mentions this or it may indicate otherwise ....  as you are giving at least one months notice ?

[keithpa]

I am not suggesting the following as it is unethical, possibly illegal. I have known many people over the  years who have not completed their lease. They got 2 weeks behind in their rent, which is not illegal, then moved out before they were evicted. And that was the end of the saga.

[smutcakes]

Legally speaking a contract is a contract and you should pay up until the end of the contract. In reality you have two options:

 

1) Ask for the landlords understanding and see if you can vacate losing your deposit and perhaps another month or so rent if necessary.

2) Just leave, with the property in good state of repair and hope that the sums we are talking about here are so nominal, and that you left the property in a good condition, that it is not worth the landlords while to take any further legal action. (perhaps leave them a note explaining the situation)

 

I find it difficult to believe that the landlord is going to go through the trouble of filing any case against you, but you should bare this in mind in the event that you have family here etc and intend to return here.

 

If you are financially able to, my option would be to just pay up the rest of the contract and then you have nothing to worry about.

[edwardandtubs]

18 minutes ago, smutcakes said:

Legally speaking a contract is a contract and you should pay up until the end of the contract. In reality you have two options:

 

This is false information. Landlord and tenant law has its own distinct rules, one of which is the ability of the tenant to terminate the contract. Of course he would lose his deposit though.

[Headgame]

1 hour ago, edwardandtubs said:

This is false information. Landlord and tenant law has its own distinct rules, one of which is the ability of the tenant to terminate the contract. Of course he would lose his deposit though.

 Are you saying that Thai landlord and tenant law permits a tenant to simply walk away from his lease by forfeiting his deposit? I seriously doubt that but stand to be corrected if you can back up your claim. 

[edwardandtubs]

3 minutes ago, Headgame said:

 Are you saying that Thai landlord and tenant law permits a tenant to simply walk away from his lease by forfeiting his deposit? I seriously doubt that but stand to be corrected if you can back up your claim. 

This is a basic legal principle in most countries in the world. You don't really think that if a tenant leaves one month into a two year contract they have to cough up the whole lot do you? 

[smutcakes]

59 minutes ago, edwardandtubs said:

This is a basic legal principle in most countries in the world. You don't really think that if a tenant leaves one month into a two year contract they have to cough up the whole lot do you? 

Are you talking about residential Landlord and Tenant? I dont believe you are correct (But stand to be corrected on residential), but if you are including commercial landlord and tenant law I can say 100% you are incorrect. 

 

Just adding that one of the key benefits of signing extended lease lengths is to be able to negotiate lower rental, by guaranteeing the landlord longer term of income, they are prepared to take lower rent. This is all a bit mute if the tenant can take a longer lease and lower rental and then just walk away forfeiting only the deposit.

Edited December 6, 2017 by smutcakes

[csabo]

What surgery takes 12 months is the question I would ask if I was the landlord. 

[gamini]

4 hours ago, keithpa said:

I am not suggesting the following as it is unethical, possibly illegal. I have known many people over the  years who have not completed their lease. They got 2 weeks behind in their rent, which is not illegal, then moved out before they were evicted. And that was the end of the saga.

you seem to know many nasty people, the sort that give expats a bad name in this country.

[Headgame]

1 hour ago, edwardandtubs said:

This is a basic legal principle in most countries in the world. You don't really think that if a tenant leaves one month into a two year contract they have to cough up the whole lot do you? 

Well call me crazy but yes. If a tenant unilaterally terminates a lease in writing, the landlord is typically obligated to make best efforts to rent he premises and mitigate his losses BUT the tenant is certainly liable for any losses the landlord may incur such as it took three months or whatever to rent the premises. That’s actually how it is in most countries in the world.

Edited December 6, 2017 by Headgame

[alex8912]

1 hour ago, edwardandtubs said:

This is a basic legal principle in most countries in the world. You don't really think that if a tenant leaves one month into a two year contract they have to cough up the whole lot do you? 

Yes. I don't know your country but what is the purpose of a lease in your world? 

Thr owner has some obligation as does the tenant to minimize damages/ loss of rent but I do Real Estate in a hot rental market and  if someone wants to leave in February for example a new tenant might not be found until June  because 90% of leases turnover between 6/1 and 9/1 also the landlord should not have to take less $$ for the remaining term of the lease the old tenant would have to pay that as well. In your world everyone should sign a long term lease to get a much lower rent and then leave at some point and have no obligations. That is insane. He had 12 months left!! 

Edited December 6, 2017 by alex8912

[Cyclone88]

Many leases stipulate that if you leave before the lease is up , you simply loose your deposit which is normally 2 months rental.

[alex8912]

1 minute ago, Cyclone88 said:

Many leases stipulate that if you leave before the lease is up , you simply loose your deposit which is normally 2 months rental.

That is a HUGE generalization!!  I do leases for a living and have never ever heard of what you are saying. Even you saying deposits are "normally" two months is incorrect. 

[edwardandtubs]

Landlords have to do what is reasonable to mitigate their losses by finding a new tenant as quickly as possible. If they go to court claiming it was impossible to find a tenant so they want the full 12 months it would be highly unlikely to succeed. No sensible landlord would waste time and money trying that.

[smutcakes]

12 minutes ago, Cyclone88 said:

Many leases stipulate that if you leave before the lease is up , you simply loose your deposit which is normally 2 months rental.

You lose your deposit but it does not preclude the landlord taking legal action against you for breach of contract, which in Thailand i believe is a criminal case. As i mentioned in an earlier post, in residential cases they dont do this for the most part and its simply not worth the time/cost/reward of doing so.

 

If you however were a multinational company renting units for your staff, you can bet your ass the landlord would pursue them for full payment. (The MNC would pay the full amount anyway or have a diplomatic clause in the agreement)

[bazza73]

54 minutes ago, alex8912 said:

That is a HUGE generalization!!  I do leases for a living and have never ever heard of what you are saying. Even you saying deposits are "normally" two months is incorrect. 

It is usually one month in western countries. However, two months seems to be the normal amount in Thailand.

[bazza73]

IMHO negotiation with the landlord would be the best course of action. I think offering to forfeit the security deposit under the circumstances would be reasonable. If the OP has been a good tenant, needing surgery should be sufficient reason.

Any landlord worth their salt should actually be able to make a profit by re-renting the dwelling before the two months of the security deposit expires. As for going to court, only a complete idiot would do that - how would they get a court order enforced against someone who has gone overseas?

[alex8912]

9 minutes ago, bazza73 said:

It is usually one month in western countries. However, two months seems to be the normal amount in Thailand.

Rental deposits are not the same or "usual"  from country to country and differ a lot even within the same country.  There are also  laws regarding how much a landlord can even take. In Boston for example you can ask for first month rent , last month rent , up to a one month security deposit ( you can NEVER legally ask for more and virtually no one does ) and a small key deposit maybe $50. Many landlords take all these deposits but many do not. In New Yourk it's different, Florida different etc.  So in my western country you saying one month is normal is wrong. I also think the meaning of the word "deposit" is not even the same. Like in Thailand I think it's ok/ legal to take 2 months security deposit which is completely different than taking a last month rent and a security deposit. In my city in the west you can never take 2 months Security deposit it is 100% illegal. Security deposits are not supposed to be used for any one months rent. They should be refunded in full with deductions for damage above normal wear and tear. Last month rent if taken is just for that. The last month of your lease is pre paid and you just use it. 

[bazza73]

16 minutes ago, alex8912 said:

Rental deposits are not the same or "usual"  from country to country and differ a lot even within the same country.  There are also  laws regarding how much a landlord can even take. In Boston for example you can ask for first month rent , last month rent , up to a one month security deposit ( you can NEVER legally ask for more and virtually no one does ) and a small key deposit maybe $50. Many landlords take all these deposits but many do not. In New Yourk it's different, Florida different etc.  So in my western country you saying one month is normal is wrong. I also think the meaning of the word "deposit" is not even the same. Like in Thailand I think it's ok/ legal to take 2 months security deposit which is completely different than taking a last month rent and a security deposit. In my city in the west you can never take 2 months Security deposit it is 100% illegal. Security deposits are not supposed to be used for any one months rent. They should be refunded in full with deductions for damage above normal wear and tear. Last month rent if taken is just for that. The last month of your lease is pre paid and you just use it. 

The security deposit ( it's called a bond ) in Australia is one month's rent. Which is about as relevant to this thread as your more extensive exposition. The OP is in Thailand. I've said, based on observation, the usual security deposit is 2 months here. Why are you getting your knickers in a twist?

Edited December 6, 2017 by bazza73
Knickers not knockers

[pby92]

May be you can find a new tenant by yourself and introduce him to landlord and if you have stuff to sell it will be a win/win deal

[keithpa]

3 hours ago, gamini said:

you seem to know many nasty people, the sort that give expats a bad name in this country.

Im not saying all Englishmen would do the same.

[impulse]

3 hours ago, bazza73 said:

As for going to court, only a complete idiot would do that - how would they get a court order enforced against someone who has gone overseas?

 

When money and emotion are both in the equation, people can do spiteful things, even if they don't have a chance of getting any money.  I'd sure hate to be greeted at immigration on arrival by notification that I had an arrest warrant or lawsuit pending against me.

 

[alex8912]

3 hours ago, bazza73 said:

The security deposit ( it's called a bond ) in Australia is one month's rent. Which is about as relevant to this thread as your more extensive exposition. The OP is in Thailand. I've said, based on observation, the usual security deposit is 2 months here. Why are you getting your knickers in a twist?

I don't know what knickers are and I've rented in Bangkok before and only paid a one month Seurity deposit and I was a landlord here in Bangkok for 10 years and asked for just one month security deposit. So my observation is different than yours and if you read the op's question he only paid ONE month security deposit. Just to stay more on topic.  

[Bang Bang]

12 hours ago, dusktilldawnman said:

Unfortunately I have to break my lease contract next year because I have to undergo surgery overseas. If I terminate a 36 month lease after 24 months, can the landlord  hold me responsible for the 12 months rent remaining  under the lease or do I just loose my deposit (one month rent).

 

Of course, he can. It's a contract. The deposit is to cover damages, not a fee to break the contract.

 

Sit down and talk with the landlord. Ask what you need to do to get out of the lease. He should be sympathetic of the exigency.

 

If he plays hard ball, send him a letter describing your situation, asking release, proposing fair compensation (say another month's rent) and asking for a reply within a given period. All this will hold zero water in a court of law - you are still bound by the contract - but might tilt him to negotiating your exit.

 

Whatever you do, don't unilaterally break the contract and walk away. That would amount to not paying him money owed which is a criminal case if he cares to file suit. Which could mean your being fast-tracked through immigration when you next return straight into a paddy wagon.

[rwdrwdrwd]

.

Edited December 6, 2017 by rwdrwdrwd

[blackcab]

To answer the OP: You signed a contract, and your obligation is to fulfil the contract. You are liable to pay the 12 months remaining.

 

However... The only way the landlord can try to enforce this is by taking you to Court, which is a long and costly process. Realistically this will almost never happen. The landlord will keep your deposit and rent in advance and lease the unit again.

 

The fact that the contract is for 3 years suggests to me it is a commercial lease. If this is the case, and you bound a company by signing as a director then it is the company that would be persued rather than yourself as the director.

 

More information is needed from the OP on this point.

[dddave]

I'd ask the OP how he would respond if the situation were reversed...if it was the landlord who was trying to terminate the lease contract before it's completion.

Would you believe you deserved some sort of compensation?

[keithpa]

11 hours ago, dddave said:

I'd ask the OP how he would respond if the situation were reversed...if it was the landlord who was trying to terminate the lease contract before it's completion.

Would you believe you deserved some sort of compensation?

And I would tell the  op to ignore comments like yours. What was his question?