Q: Is a lease termination fee enforceable as a penalty if the landlord is able to find a new tenant upon lease termination?
Cincinnati, Ohio- I submitted a notice to vacate 60 days prior to moving out of my apartment. I am breaking my lease prior to the agreed end date of my lease. The lease agreement contains a clause stating early termination of lease will result in a fee equal to two months rent. Is this enforceable if the landlord is able to find a new tenant to lease the apartment to?
The apartment is being leased at a higher rate of rent than my lease. I know I will owe fees (damage to property, marketing fees, etc.), but paying for a full two-months seems counter to Ohio law requiring a landlord to make a good faith effort in re-leasing an apartment. I was told this fee has nothing to do with the landlords ability to re-rent the property, but instead it is their penalty for breaching my legal obligation.
It is my understand that penalties are generally unenforceable in a contract and even more so in the landlord-tenant setting. Is there any recourse to reduce the amount owed?
A: If you don't pay, and then landlord sues, the court would determine if it is enforceable or not. But landlord might not sue, and instead might make an adverse entry on your credit report for non-payment, lowering your credit score and making it difficult to rent from a landlord who checks your credit. Try to work it out with landlord to avoid that.
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