Can a landlord charge you a fee for breaking a lease?
Full Question:
Can a landlord charge you a fee for breaking a lease?
05/06/2007 |
Category: Landlord Ten... ยป Lease Termin... |
State: Pennsylvania |
#3916
Answer:
You should carefully read your lease agreement to determine your landlord's remedies if you terminate your lease early. Your landlord may be able to seek rent payment from you for the period of time you were supposed to rent the property under the agreement and/or may retain part of your security or deposit payment.
The applicable Pennsylvania statutes are as follows:
68 P. S. § 250.301. Recovery of rent by assumpsit
Any landlord may recover from a tenant rent in arrears in an
action of assumpsit as debts of similar amount are by law
recoverable. In any such action, interest at the legal rate on
the amount of rent due may be allowed if deemed equitable under
the circumstances of the particular case.
68 P. S. § 250.302. Power to distrain for rent; notice
Personal property located upon premises occupied by a tenant shall,
unless exempted by article four of this act,[fn1] be subject to distress
for any rent reserved and due. Such distress may be made by the landlord
or by his agent duly authorized thereto in writing. Such distress may be
made on any day, except Sunday, between the hours of seven ante meridian
and seven post meridian and not at any other time, except where the
tenant through his act prevents the execution of the warrant during such
hours.
Notice in writing of such distress, stating the cause of such taking,
specifying the date of levy and the personal property distrained
sufficiently to inform the tenant or owner what personal property is
distrained and the amount of rent in arrears, shall be given, within five
days after making the distress, to the tenant and any other owner known
to the landlord, personally, or by mailing the same to the tenant or any
other owner at the premises, or by posting the same conspicuously on the
premises charged with the rent.
A landlord or such agent may also, in the manner above provided,
distrain personal property located on the premises but only that
belonging to the tenant, for arrears of rent due on any lease which has
ended and terminated, if such distress is made during the continuance of
the landlord's title or interest in the property.
[fn1] 68 P. S. § 250.401 et seq.
68 P. S. § 250.307. Proceeding by tenant to determine set-off
Any court of record or court not of record having
jurisdiction in civil actions at law may entertain an action to
defalcate by a tenant against a landlord where the landlord has
distrained for arrears of rent, to compel the landlord to
set-off any account which the tenant may have against the
landlord. No such court shall entertain any such action where
the rent or set-off claimed is in excess of its civil
jurisdiction. Proceedings in such actions shall be the same as
in actions of assumpsit.
The court shall determine the amount of rent in arrears and
the amount of the set-off, if any, and enter judgment in favor
of the proper party for the balance due.
If such judgment is in favor of the landlord he may, in lieu
of issuing execution thereon, proceed with his distress for the
amount of such judgment. If the landlord shall sell more
personal property than necessary to satisfy such judgment and
costs and fail to pay the overplus to the tenant, he shall be
liable in trespass to double the amount of the sum so detained,
together with the costs of suit. If the landlord shall proceed
to sell any personal property after notice of any such
proceeding to defalcate and before judgment in his favor
thereon, he shall be liable in trespass to double the amount by
which the sum realized from such sale exceeds the sum to which
he shall be found to be entitled by the final judgment in the
defalcation proceeding, together with the costs of suit in the
defalcation proceeding, if such judgment be in his favor.
If the landlord proceeds with the distress, he shall satisfy
the judgment to the extent of the amount realized on the sale,
less the costs of the distress, or on his failure to do so, the
tenant may proceed by rule to have such satisfaction entered.
68 P. S. § 250.501. Notice to quit
(a) A landlord desirous of repossessing real property from a tenant
except real property which is a mobile home space as defined in the act
of November 24, 1976 (P.L. 1176, No. 261),[fn1] known as the "Mobile Home
Park Rights Act," may notify, in writing, the tenant to remove from the
same at the expiration of the time specified in the notice under the
following circumstances, namely,
(1) Upon the termination of a term of
the tenant,
(2) or upon forfeiture of the lease for breach of its
conditions,
(3) or upon the failure of the tenant, upon demand, to
satisfy any rent reserved and due.
(b) Except as provided for in subsection (c), in case of the expiration
of a term or of a forfeiture for breach of the conditions of the lease
where the lease is for any term of one year or less or for an
indeterminate time, the notice shall specify that the tenant shall remove
within fifteen days from the date of service thereof, and when the lease
is for more than one year, then within thirty days from the date of
service thereof. In case of failure of the tenant, upon demand, to
satisfy any rent reserved and due, the notice shall specify that the
tenant shall remove within ten days from the date of the service
thereof.
(c) In case of the expiration of a term or of a forfeiture for breach
of the conditions of the lease involving a tenant of a mobile home park
as defined in the "Mobile Home Park Rights Act," where the lease is for
any term of less than one year or for an indeterminate time, the notice
shall specify that the tenant shall remove within thirty days from the
date of service thereof, and when the lease is for one year or more, then
within three months from the date of service thereof. In case of failure
of the tenant, upon demand, to satisfy any rent reserved and due, the
notice, if given on or after April first and before September first,
shall specify that the tenant shall remove within fifteen days from the
date of the service thereof, and if given on or after September first and
before April first, then within thirty days from the date of the service
thereof.
(c.1) The owner of a mobile home park shall not be entitled to recovery
of the mobile home space upon the termination of a lease with a resident
regardless of the term of the lease if the resident:
(1) is complying with the rules of the mobile home park; and
(2) is paying the rent due; and
(3) desires to continue living in the mobile home park.
(c.2) The only basis for the recovery of a mobile home space by an
owner of a mobile home park shall be:
(1) When a resident is legally evicted as provided under section 3 of
the "Mobile Home Park Rights Act."
(2) When the owner and resident mutually agree in writing to the
termination of a lease.
(3) At the expiration of a lease, if the resident determines that he no
longer desires to reside in the park and so notifies the owner in
writing.
(d) In case of termination due to the provisions of section 505-A,[fn2]
the notice shall specify that the tenant shall remove within ten days
from the date of service thereof.
(e) The notice above provided for may be for a lesser time or may be
waived by the tenant if the lease so provides.
(f) The notice provided for in this section may be served personally on
the tenant, or by leaving the same at the principal building upon the
premises, or by posting the same conspicuously on the leased premises.
[fn1] 68 P. S. § 398.1 et seq.
[fn2] 68 P. S. § 250.505-A.
68 P. S. § 250.511a. Escrow funds limited
(a) No landlord may require a sum in excess of two months'
rent to be deposited in escrow for the payment of damages to
the leasehold premises and/or default in rent thereof during
the first year of any lease.
(b) During the second and subsequent years of the lease or
during any renewal of the original lease the amount required to
be deposited may not exceed one month's rent.
(c) If, during the third or subsequent year of a lease, or
during any renewal after the expiration of two years of
tenancy, the landlord requires the one month's rent escrow
provided herein, upon termination of the lease, or on surrender
and acceptance of the leasehold premises, the escrow funds
together with interest shall be returned to the tenant in
accordance with sections 511.2 and 512.[fn1]
(d) Whenever a tenant has been in possession of premises for
a period of five years or greater, any increase or increases in
rent shall not require a concomitant increase in any security
deposit.
(e) This section applies only to the rental of residential
property.
(f) Any attempted waiver of this section by a tenant by
contract or otherwise shall be void and unenforceable.
[fn1] 68 P. S. § 250.511b and 250.512.
68 P. S. § 250.511b. Interest on escrow funds held more than two years
(a) Except as otherwise provided in this section, all funds
over one hundred dollars ($100) deposited with a lessor to
secure the execution of a rental agreement on residential
property in accordance with section 511.1[fn1] and pursuant to
any lease newly executed or reexecuted after the effective date
of this act shall be deposited in an escrow account of an
institution regulated by the Federal Reserve Board, the Federal
Home Loan Bank Board, Comptroller of the Currency, or the
Pennsylvania Department of Banking. When any funds are
deposited in any escrow account, interest-bearing or
noninterest-bearing, the lessor shall thereupon notify in
writing each of the tenants making any such deposit, giving the
name and address of the banking institution in which such
deposits are held, and the amount of such deposits.
(b) Whenever any money is required to be deposited in an
interest-bearing escrow savings account, in accordance with
section 511.1, then the lessor shall be entitled to receive as
administrative expenses, a sum equivalent to one per cent per
annum upon the security money so deposited, which shall be in
lieu of all other administrative and custodial expenses. The
balance of the interest paid shall be the money of the tenant
making the deposit and will be paid to said tenant annually
upon the anniversary date of the commencement of his lease.
(c) The provisions of this section shall apply only after the
second anniversary of the deposit of escrow funds.
[fn1] 68 P. S. § 250.511a.
68 P. S. § 250.511c. Bond in lieu of escrowing
Every landlord subject to the provisions of this act may, in
lieu of depositing escrow funds, guarantee that any escrow
funds, less cost of necessary repairs, including interest
thereon, shall be returned to the tenant upon termination of
the lease, or on surrender and acceptance of the leasehold
premises. The guarantee of repayment of said escrow funds shall
be secured by a good and sufficient guarantee bond issued by a
bonding company authorized to do business in Pennsylvania.
68 P. S. § 250.512. Recovery of improperly held escrow funds
(a) Every landlord shall within thirty days of termination of
a lease or upon surrender and acceptance of the leasehold
premises, whichever first occurs, provide a tenant with a
written list of any damages to the leasehold premises for which
the landlord claims the tenant is liable. Delivery of the list
shall be accompanied by payment of the difference between any
sum deposited in escrow, including any unpaid interest thereon,
for the payment of damages to the leasehold premises and the
actual amount of damages to the leasehold premises caused by
the tenant. Nothing in this section shall preclude the landlord
from refusing to return the escrow fund, including any unpaid
interest thereon, for nonpayment of rent or for the breach of
any other condition in the lease by the tenant.
(b) Any landlord who fails to provide a written list within
thirty days as required in subsection (a), above, shall forfeit
all rights to withhold any portion of sums held in escrow,
including any unpaid interest thereon, or to bring suit against
the tenant for damages to the leasehold premises.
(c) If the landlord fails to pay the tenant the difference
between the sum deposited, including any unpaid interest
thereon, and the actual damages to the leasehold premises
caused by the tenant within thirty days after termination of
the lease or surrender and acceptance of the leasehold
premises, the landlord shall be liable in assumpsit to double
the amount by which the sum deposited in escrow, including any
unpaid interest thereon, exceeds the actual damages to the
leasehold premises caused by the tenant as determined by any
court of record or court not of record having jurisdiction in
civil actions at law. The burden of proof of actual damages
caused by the tenant to the leasehold premises shall be on the
landlord.
(d) Any attempted waiver of this section by a tenant by
contract or otherwise shall be void and unenforceable.
(e) Failure of the tenant to provide the landlord with his
new address in writing upon termination of the lease or upon
surrender and acceptance of the leasehold premises shall
relieve the landlord from any liability under this section.
(f) This section shall apply only to residential leaseholds
and not to commercial leaseholds.