Legal Question in Real Estate Law in California
We've lived in our apartment for 13 months. The first 12 months was on a lease, at $995/month. We just signed another lease with the same apartment, and the rent went up to $1144/month. It would've been higher if we went month-to-month. My husbands grandmother just passed away, and her home is vacant. We're the only one in the area that doesn't own a home that can move in, which is what the family wants, so it's not vacant. When we moved into our apartment we paid the first months rent, plus $1500 deposit. I spoke to the manager today to ask if he would let us walk away from the lease and told him we would be putting in our 30 days notice. He refused to accept the 30 days notice today, and said it's best for us to pay Septembers rent, and give the 30 days notice then and then he can talk to the company to see what they'll do from there.
In the lease, it references CA Civil code 1951.2 and 1951.4
Honestly, reading this on my own I have no idea what this means, but was told by the other employee that works in the Apartment office that they have the right to do one of two things.
1) They can charge us the remaining 11 months on the lease
2) They can automatically keep our deposit plus charge us a $2000 fee for breaking the lease.
But I've read that the law in California states that if a tenant moves out in the middle of a lease, the landlord has an obligation to mitigate his expenses and reasonably try to rent the unit. However many days, weeks, or months our unit is vacant, is the amount we owe for rent. So I'm confused how our lease can either charge us the remaining 11 months no matter what, when the law states we would only owe however many days the unit isn't rented? Is there anyway we can get out of this legally? What are our options? We live in Hawthorne, CA in Los Angeles County, where housing is pretty limited so I know for a fact our unit wouldn't go un-rented for long at all.
1 Answer from Attorneys
Well, neither of you are exactly right. What you have read only applies if the lease does not contain a proper section 1951.4 election. The landlord can only elect to collect rent for the full term of the lease under section 1951.4 IF ---
#1. the lease expressly states the following or something substantially similar: �The lessor has the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and abandonment and recover rent as it becomes due, if lessee has right to sublet or assign, subject only to reasonable limitations);" -
AND #2 the lease expressly states a) you have an unrestricted right to sublet or assign the lease, or b) you have the right to sublet or assign the lease subject to clear conditions or restrictions that are laid out in the lease, that do not unreasonably interfere with your ability to sublet or assign the lease, and the conditions or restrictions are reasonable both when you signed the lease and at any time you try to sublease or assign the lease, or c) the lease expressly states that a sublease or assignment is allowed with the landlord's consent and consent will not unreasonably be withheld.
If the lease does NOT comply with both #1 and at least one of the provisions a), b), or c) I listed in #2, they cannot charge the remaining 11 months. They must allow you to move out and take all commercially reasonable steps to re-rent the property, charging you only for while you are there plus while it is vacant, plus reasonable costs of getting a new tenant in the unit, as provided in section 1951.2.
If the lease DOES comply with #1 and #2, then effectively the burden shifts to YOU to find a new tenant, either as a subtenant or to take an assignment of the remainder of the lease. If you bring them a qualified tenant who meets any reasonable conditions set forth in the lease, or who a reasonable landlord would accept as a tenant for the unit if the lease doesn't have specific conditions, they MUST allow you to sublease or assign the lease. Otherwise they cannot charge anything once you move out, other than the normal things that may be charged against a deposit.
So if you want to move out, your best bet is to give them whatever notice you want first. There is nothing magic about 30 days if you are not on a month to month rental agreement. Then demand that they immediately advise you whether they wish to elect to re-rent themselves under section 1951.2 or elect their remedy under 1951.4.
If they elect 1951.2, clear out and clean up as soon as possible so they can re-rent it as soon as possible. Then keep on top of their efforts to re-rent it.
If they elect 1951.4, AND the lease complies with #1 and #2 above, then hit Craigslist or other advertising source of your choice and find someone who wants to take the remainder of the lease. Also, if at all possible, assign the lease rather than subletting, unless you can sublet at a profit, since a sublease keeps you liable for the rent whereas an assignment passes the whole lease off to the new tenant.
If they refuse to elect or claim they don't have to, AND you conclude they have a right to enforce 1951.4, then find a new tenant, since they have to allow you to sublease or assign if the lease is 1951.4 compliant, but they do not have to allow you to elect 1951.2.
As for keeping the deposit plus $2000, that is just an option if you would rather buy out of the lease than go to the trouble of finding a subtenant or assignee. They can't make you take that option.