Do You Use an Early Termination Addendum?

Hi All,

I work for a small company new to the Texas area. Does anyone out there use the TAA Early Termination Addendum (or a similar one from another state)? Why or why not?

We are trying to determine the benefits of charging the entire lease and reletting fee vs. the fees outlines in the addendum in relation to the percentages of monies actually recovered.

In other words, when using the addendum, has anyone found that more people actually pay the debt, rather than let it drop off their credit in 7 years or so?

We use one here and it seems to work actually. Our guidelines are very straightforward:
1. We charge a $500.00 lease cancellation fee that needs to be paid with a money order.
2. We require all move in concessions to be paid back
3. We require a thirty day notice
4. We require the resident to be current on rent.
5. You must have resided on the property for a minimum of 6 months
6. You must schedule a walk through of the property and pay any damages or cleaning charges prior to turning in your keys.
7. You waive your security deposit.

Residents actually look at is as helpful because most communities don't offer that and we sell it up! In regards to credit, most things are no longer removed after 7 years like years ago. It will remain on your credit as long as their is activity on the account and with so many credit companies buying and selling portfolios most accounts remain active for much longer than in the past.

Hope this helps!

Ashley, it is such a tough economy right now. Whether or not you will get you money depends a lot on the reason for the early termination! If the resident has lost their job and is moving in with friends or family, you probably won't see your money, even if you have a lease break addendum!