• Home
• About
• Site Map

« Financial Insights » Investing In Real Estate Is Not Easy http://bit.ly/26sJNX | Real Estate capital growth / Toronto market? »

Can reletting fees be disputed?

Posted by Real Estate Investor on Jul 06 | Real Estate Investing Chatter

TEXAS - I’m planning on discussing with my [former] apartment manager about the situation (she’s out of town for holiday), but for future reference…
http://www.kraftlaw.com/Articles/TenantsRightsHandbook.htm “landlords can charge you a reasonable “reletting fee” for having to prepare the dwelling for reletting and having to redo paperwork sooner than normal. The reletting fee mush be a fair amount to cover actual expenses and cannot be unfairly inflated (you cannot be “penalized” for breaking a lease.) The law forbids you from being penalized from breaking a lease early. You are not supposed to be penalized, you are only responsible for making up for the landlord’s losses.”
http://bulk.resource.org/courts.gov/c/F2/383/383.F2d.72.8688_1.html “The enforceability of such clauses depends in general upon how reasonable they are — for example, whether they are triggered by any small breach of contract (clearly unenforceable under Stewart) or by failure to pay rent. Even the latter type of provision was held unenforceable in Christi, but it is a question on which the Supreme Court has not yet spoken. In order for a liquidated damages provision (such as a cost of reletting fee) to be enforceable, the damages must be uncertain and the stipulated amount must be reasonable. Stewart v. Basey, 245, 484 (Tex. 1952).
(b). Unenforceable Penalties
A tenant challenging a lease clause as an unenforceable penalty must plead affirmatively that it is a “penalty” and is in excess of the landlord’s actual damages. Walter E. Heller and Company, 543 S.W. 2d at 697. To be enforceable, the damages from the breach must be uncertain and the stipulated amount must be reasonable. Stewart v. Basey, 245, 484 (Tex. 1952)(”a party should not be awarded neither less nor more than his actual damages… . “)”
I lost my job in August 2008, and so I started doing the month-to-month rent after my original lease was up (an extra $100 for the month-to-month option) I then stayed there as long as I could (6 months) before my savings ran out, and before I could find a better paying job (found a lower paying job, but it just was not enough money coming in for everything). After trying to hold off, I paid the last 2 months of rent with my credit card. I finally couldn’t handle the stress anymore, and on May 5, my sister allowed me to move in with her. I put my move-out-notice in on that same day (June 5). I know that I had put my notice in 4 days “too late”, but understood that the apartment management was accepting it as my 30 day notice…And they did tell me that I could move out on June 1 when I spoke to them. Foolish mistake for me to trust them, I later learned.
I was expecting a deposit refund check, but instead got a bill for $630, for a “reletting fee”.
My lease is the standard TAA lease… I have seen the reletting fee on there before and that it is 85% of rent, and I understood it. But like I said, it wasn’t clear to me that they did not agree with my move-out-date, therefore, I did not expect this. I really liked those apartments, and planned on moving back after I could get back on my feet. This is the reason I gave them as much move-out-notice as possible (versus moving out on May 5, and giving them a “1 day notice”.) Hopefully this is just a huge misunderstanding between the apartment manager and their corporate offices, and I can get it taken care of. God I hope so,,,
Anyway, I understood the 85% reletting fee in the lease agreement. However, I find it hard to believe THEY could have saved $630 IF I had put my move-out-notice in 4 days earlier. To me, it sounds like a “penalty” (but hopefully a misunderstanding) instead of a reletting fee, being used to recover their cost incurred in reletting the apartment. Especially when, at the most, they would have only gotten 30 days to find a new tenant since I was on a month-to-month rent. At the most, they could have sent me a bill for the prorated 5 days. I’m really disappointed in them.
My question is, for future reference… (if it ever had to come down to it) Is there a possibility that my lease could be ruled an invalid contract, by a judge, if it is in the judge’s opinion that this $630 charge was being used by the apartment company as a penalty, and not relevant to actual cost that were incurred in reletting the apartment?
Thank you kindly for any advice…
I posted the wrong link for 2nd quote… here’s the correct link http://www.tenant.net/Other_Areas/Texas/txlihs/tenant.html, more 

and How much for refinancing fees using Amerisave?  I’m trying to refinance my house through Amerisave at 4.375% APR but they want $8900 at closing to cover all the fees. My wife and I think this is an absurd amount of cash for this. The lender says I will get back $2600 in escrow, and won’t have to pay mortgage for 2 months, so a lot will come back, but we’ll still be out around 3K. Has anyone here dealt with these guys, and are they legit?
Thanks in advance,
John, more 

and What would you do, landlord and neighbour problems?  Almost a year ago we moved in to our new house (its rented)
We were never told that the small amount of grass infront of someone elses house is ours.
So the landlord was complained to by our neighbours about the small amount of grass infront of their house.
The neighbours have no right to complain, they grow and sell marijuana have loud wild parties and her kids kick footballs in the estate in zones that are no football zones.
They have broken our fence with the footballs etc.
Its not right and its not fair.
Should we complain?, more 

My landlord is going to use the electronic checks, they want to hold my check 30 days before returning it?  are they able to do this. I thought they had to return the check immediately, more 

and Can Edinburgh city council charge me for a mistake they made on a now closed account?  My girlfriend and I have been having on going problems with edinburgh city council. They have continually billed us well after our proving we are full time students and recently we thought we had fixed it all.
We received a letter saying everything was paid until 2010.
But a week later we received a letter saying that our previous apartment, which they told us the account was closed, was owed money.
They claim we owe them almost 100 pounds, which they ‘wrongly refunded’ despite having sent a letter a week before claiming we owe nothing.
We have already gone to their building 5 times, spoken on the phone countless times but they keep messing us around.
My question is; do we have to pay them back if they made a mistake with the refund? We feel like we have absolutely no power, they chop and change sending us letters saying we’re fine, then letters saying we owe money.
They also told us that account was closed months ago, and again sent letters saying we owed nothing for it.
If they take us to court, will the judge ignore the letters they sent saying it’s all cleared?, more 

Tags: houses, homes, real estate, property listings

---

Powered by blog.gy