First House! (1 Viewer)

[MikeAlletto]

I've been looking for a house to buy for my first house and I think I found it. Only problem is that its available for move in but my apartment rent isn't up till May. It looks like I would close near the end of February on the house if I take it. There is a early move-out/reletting charge on the lease of $986. Does this mean if I tell them I'm leaving end of February I will need to pay $986 per month left on my lease? Or does this mean I'll have to pay the full rent each month including a one time $986 fee?

I'm kinda thinking its the last one which if they won't cut me a deal I'll have to decide to just cough up the reletting fee and rent each month or not put down money to save the house and take a chance that someone else won't grab it for a month or 2.

 

[BrianB]

You'll need to check the contract, Mike. Is it a standard Texas Apartment contract? We just bought our first house up here in Dallas & the terms of our lease were a one off payment (aka reletting fee) but no charges after that. We also would have had to pay back the bonus we received for renewing our lease a whileback... For us, it worked out cheaper to just pay the January rent than to break it a month before the lease was over anyway.

It's worth just going in and asking your apartment office - I told them my job might relocate me & asked what penalties there'd be.

 

[MikeAlletto]

Yeah I tried going in today but the manager wasn't there so I had to go back to the builder and get them to give me till monday which they did. So I'm planning on going to talk to the apartment manager first thing when they open monday morning. It is a standard TAA contract. I'm very worried that they will say if I want to move in february I will need to pay the $986 reletting fee and then each months rent until the end of my lease or they rent my apartment, which ever comes first. Its a gamble, they could rent it right away and I'll just be out about 2 grand, or they could not rent it right away and I'll be out 4400 which would pretty much kill me.

 

[BrianB]

If you have to pay rent until it's re-leased (which I don't believe is in the standard TAA, but I can't say for sure), you need to be *really* confident of the gamble. How's the occupancy of the complex right now? If there's lots of empty apartments, yours is likely to be last to get leased - they're guaranteed income from it, and leasing it rightaway will cause them to lose money shortterm.
I'm sure you know this already
What's your contract say? I've just checked out last contract:

11.EARLY MOVE-OUT; RELETTING CHARGE. You'll be liable to us for a reletting charge $xxx (not to exceed 85% of the highest monthly rent during the lease contract term) if you:
1. fail to give written move out notice as required in xxx.
2. move out without paying rent in full for the entire Lease Contract term or renewal period
etc.

Essentially 2 is what applies in this case - you're moving out and NOT payint rent in full for the lease. My reading of that, and my experience, is that it means a one off payment plus the rent for February (I presume you give written notice on the same day that you're moving out in 30 days etc).
Of course, I am not a lawyer etc.

 

[MikeAlletto]

Mine says that but then in smaller print says:

The reletting charge does not release you from continued liability for: future or past-due rent; charges for cleaning, repairing, repainting or unrreturned keys; or other sums due

I think that fine print defines worst case. I guess I'll find out on monday morning whether I get to buy a cool house or not. It'll either be a great week or a horrible one
If they say its worst case, reletting charge then each months rent till lease up or rented, then I will just say I'm moving in May and start looking for a different house. I'm not giving them anymore money than possible. I don't see why they won't let me out for just the reletting fee and the feb rent, it'll only be 2.5 months early. Oh well...I gotta find something to take my mind off it for another day
I've got some poorly taken pictures up at http://alletto.dyndns.org/house3.html
I know they don't show much though. Its internet ready (cat5 in the walls going into a wiring box on the 2nd floor with an included router, but they didn't crimp and cap off the ends, gotta ask about that). Its also got speaker cable in the walls. Its covered with outlet plates though so I don't know what kind. Its the perfect size for 1 person. Its going to have sod front and back and its got a covered back patio. Comes with microwave, gas range, dishwasher and disposal, so the only thing I'll have to buy right away will be blinds for the windows and a fridge (and new receiver, svs sub, hdtv... ) Its a corner lot but the streets that go past it go right into dead-ends so no through traffic.

 

[BrianB]

Congrats, looks real good, Mike.

Are you financing through the builder's "favoured" lender? If you are, and it's already been built, you may be able to get /them/ to pay off your lease breaking fees.

We looked at Centex homes around here, and saw a house we liked - it'd been built for someone else but the deal had fallen through, so Centex were desperate to sell it (as it was costing them tax, interest etc). They offered to pay all our fees if we'd break our lease (we had about three months to go at that time), pay for a moving van etc, they were very desperate for us to take that or any of their other "existing" homes on this new complex. We didn't take them up on the offer though.

 

[MikeAlletto]

Its all set! Its going to just cost me the reletting fee to get out of my lease. I go to sign the contract on the new house tomorrow morning!

 

[BrianB]

Sweet, congrats! Glad it worked out easily.