Legal Question in Landlord & Tenant Law in California

I am the owner of a rental property in California and I employ a property manager to manage the property. Recently an issue arose when the current tenants wished to terminate their lease. The issue is described below.

1. At the end of March, the current tenants informed our property manager that they would like to break their current lease because they are in escrow to purchase a home.

2. At that time, our property manager signed a lease termination contract with the current tenants that specified that the current tenants would vacate the rental property by April 30th.

3. Also at that time, our property manager began to search for a new tenant, and he actually found a new tenant after only a few of days of searching.

4. Next, in early April, the property manager had the new tenant sign a new lease contract that stated that the new tenant would gain access to the property by May 17th.

5. Unfortunately, at the end of April, the current tenants failed to honor their agreement to vacate the property on April 30th

6. It is now May 16th, and the current tenants have still not vacated the property.

7. After contacting an attorney who specializes in evictions, I learned that we cannot evict the current tenants, even though we have a signed lease contract with the new tenant.

� The reason we cannot evict the current tenants is because we accepted a prorated rent payment from the current tenants to cover the time between April 30th, when current tenants were supposed to vacate the rental, and May 17th, when the new tenant was schedule to move in.

� My understanding is that, our acceptance of this prorated rent payment essentially nullified the previous lease termination that was signed by the current tenants.

8. During my conversation with the attorney, I also learned that the property manager should have written the new lease with the new tenants such that the new lease was contingent on the current tenants vacating the property. Unfortunately our property manager did not do this.

9. I have also learned that the new tenant will now seek damages to cover the storage cost for their possessions until such time as he can either gain access to the rental property, or he can find some other suitable residence.

10. Also, as an additional note, the property manager is the one who signed the new lease with the new tenant on my behalf and I have not yet received a copy of the new lease contract.

Therefore, based on the above, who exactly is liable for the damages that the new tenant will incur? Is the property manager liable, or the property owner, or is no one liable? I assume that the property manage is liable, since he was negligent in preforming his duties as the property manager when he signed an improper lease contract on our behalf with the new tenant.

Any advice would be appreciated.


Asked on 5/16/12, 8:43 pm

1 Answer from Attorneys
David Van Sickle David Van Sickle Attorney

As with most real estate problems, the answer is going to be controlled by the contract.

In this case, you are liable to the new tenant and, you may have an action for indemnity against both your manager and the existing tenant. Again, it will depend on

the nature of the lease contracts and, the employment contract with your manager.

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Answered on 5/22/12, 9:58 am


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