P101 - How does re-renting work
All of our homes are meant for long term stay (1 year or longer) so that the residents can enjoy the benefit of steadily and peaceful living, without worrying about to move around year after year.
However, there may be few rare cases that long term stay might have to be cut short unexpected, or instead of 1-year, 8-month lease term is ideal with the benefit of paying rent on yearly term still. The option of “re-renting” allows landlords and the residents work together to address these special scenarios.
This post shall explain what is the “re-renting” option, under what scenarios it may apply, how does it work etc.
Re-renting is an option to rent the house to the new qualified tenants so that the current residents may 1) Move out without paying the hefty lease penalty because of ending the stay prematurely. Or, 2). (Normally for student) to enjoy the better rents for 1-year lease term while be able to stay for 8-month term.
In a nutshell, it is an approach for landlord and tenants to work together to get the home rented out before the current residents have to leave the home. The landlord is mainly in charge of advertising, marketing, screening, and approving so on, the tenants will make sure the house is in the best showing condition, and also showing the house to the prospects as needed.
Re-renting is NOT sub-leasing, which is not allowed under any circumstance. To find out more about the issues with “sub-leasing”, please click here.
There are 2 main scenarios under which the “re-renting “option may apply
Scenario 01 – You are currently under 1-3 year lease. Due to certain events with unexpected nature (e.g. “job relocation”), you may have to move out prior to the lease expiration date.
Scenario 02 – You are students, may need to stay for the term of 4-8 months instead of 1-year. You also like to enjoy the better rents that normally is only available for 1-year lease term or longer.
Besides the above two most common scenarios where “re-renting” option may apply, there might be other scenarios that may be reviewed and decided on case by case basis.
For scenario 01 – Here are the key steps to follow:
- Apply in writing as soon as you have confirmed the change, clearly stating the reason for leaving pre-maturely, the exact date you will leave.
- Our office will review and decide if the “re-renting” option applies.
- Once approved, our office will turn on our renting marketing work flow system to advertise the home to the public, screen the prospects, book the viewing, process the application, sign off the new lease etc.
- The current tenants only need to show the home if chosen, or our agents may show it with the charge of $35.00 per showing in person, or $150.00 if the showings are green viewing (via Zoom)).
- If the home is rented before the earlier moving-out date, the current resident may only pay the re-renting fee of $375.00 to end the current lease.
- If the home is not rented before the earlier moving-out date, the current residents may apply for “frustration agreement” or, continually pay the rents until the house is rented out.
For scenario 02 -Staying for the shorter lease term of 4-8 months while enjoying the rent for 1-year lease (for students only)
- The tenants shall opt for the option of ‘4-8 month” lease with “re-renting” option, providing they are full-time students in colleges/universities.
- The tenants may provide minimum 2-month writing notice in advance prior to leave during their term.
- The office will start the marketing and advertising campaign to rent the home out.
- The resident shall keep the place clean and tidy and showing the property to the prospects as their effort to rent the place out.
- If the home rented prior to the move-out date, the re-renting fee of $375.00 shall be waived. If not, it will be added to the final move-out statement.
For any further assistance on the terms and conditions, you may contact our office directly. Thank you.