A charge levied by a landlord or property management company to cover expenses incurred when a tenant breaks a lease and the landlord must find a replacement tenant. This compensation covers costs associated with advertising the property, screening potential renters, and preparing the unit for a new occupant. For instance, if a tenant vacates a property six months before the lease expires, the landlord may assess a specified amount to offset the financial burden of securing a new tenant.
The rationale behind such a fee is to mitigate the financial losses landlords face when a lease agreement is prematurely terminated. It helps maintain the financial stability of the property and ensures that the landlord is not solely burdened with the costs of re-tenanting. Historically, these charges have evolved as a standardized practice to protect landlords while acknowledging tenants’ occasional need to break a lease due to unforeseen circumstances.
