Post # 1
How did your lease work? I know that the buying a home process can vary widely as far as timeline, so how did you handle your lease?
Right now, our lease ends in June, we’ll rent for at least one more year (possibly two), and I know they aren’t very flexible on extending it. My worry is that if we started looking and wanted to move during the summer, what happens if say, we can’t get into a house until August? How did you other renter -> owners handle this? Did you have to pay out the rest of your lease, did they cut you a deal?
Post # 3
My husband was renting when we bought our house and was able to sublet his apt really easily. Once we had a closing date, we put a craigslist ad up and had someone sign to take over within 3 days. But his apartment was also in a really desirable neighborhood for both college kids and young professionals.
Post # 4
When I purchased a house I had 3 months left on my lease. The builder actually paid out the lease if I closed on my house by a certain date! It was a new house, so I am thinking that it would have cost him more to pay to keep the house then it did to buy out my rent… I wasn’t complaining though!
Post # 5
Great question! We’re in a very similar situation. Our lease goes through July, and we’ll definitely renew for at least another year, maybe two. But I’d hate to be constricted in my house hunt (whenever we get to do that) by when our lease expires.
Post # 6
On our first house, we ended up getting one of my husband’s friends to sublease. On this house, we planned it so that the lease would be up a month after we bought so we were rushed to close.
Post # 7
@MrsSaltWaterTaffy: yeah, I’m thinking we’ll just have to try to set it up so we are done by May or early June and if we have to pay the last couple months of rent, we can. I just worry about buying….will the homeowners be moved out yet? and if not, that takes time….lol, I suppose I can’t know until we get to that bridge, but it’s helpful to see what other people optioned to do.
I wonder about subleasing…it is a nice area so that would be a possiblity.
Post # 8
I scheduled my closing 2 weeks before my lease was up on the apartment. It worked out great. Is there any way you could look for a place with a month-to-month lease since you don’t really know when you’ll buy?
Post # 9
The couple of times i’ve broken a lease, i’ve always found a renter to take my place, so there was no problem. If you work with your landlord to get your place listed for rent online, etc and are really flexible with showings, there might not be a problem.
With the housing market like it is, I doubt they will cut you a deal. The number of people renting instead of owning is so much higher that there is a lot of competition – they have no incentive to lose money by cutting you a deal! Just try to find a replacement tenant, and you’ll be fine.
Post # 10
The penalty for breaking our lease is the loss of our damage deposit (1 months rent), so we figure we will just plan to absorb that loss. I mean, we deposited the money so long ago, it hardly feels like a “loss” anymore!
Ideally we would try to match up a house purchase with the lease ending though.
Post # 11
Our lease ended the end of February and we weren’t set to close until mid-May. We had been upfront with our landlord (he was really laid back, and it was a 3 family house) from the beginning and he let us rent month-month.
Unfortunetly, some last minute things happened with the closing date so we had to put everything into storage for 4 weeks, and stayed at my moms house. It wasn’t ideal…but it all worked out.
Post # 12
@crayfish: well what I’m wondering on the ‘cutting a deal’ is that they should be able to fill the place relatively quickly, so rather than hold us to paying whatever we’d have to pay, let someone else move in, and get a full year’s lease on them instead.
Post # 13
I had a roomate when I had to break my lease, I infomred her that she would need to find a roommate 5 months in advance. We ended up buying or condo in August, and my lease did not end till Jan 1. I kept telling her to look for somebody but she kept putting it off like it wasnt really going to happen, I told her I would not be able to keep paying rent and that she should really start looking for a roommate, she understood and signed an agreement releasing me from the lease. When I moved out, she moved into a one bedroom apt and they turned around and rented out our place so she was no longer in the lease for the 2 bedroom.
Post # 14
Before we signed our 1 year lease, we made sure there was a reasonable ‘out’ in case we found a home to buy in the middle of it. Our management company was pretty flexible, you can either pay a 1.5 month penalty adn be out free & clear OR give notice to vacate 30 days in advance, let them show it while you’re still living there and if someone rents it you don’t owe anything.
So of course we entered contract on our home 6 months into the 1 year lease and opted to give notice and let them list the apartment. Even though they listed it about 20% more than what we were paying it rented immediately since we live in a very desirable neighborhood where there is a less than 1% vacancy rate. But of course the people who rented it were just like us and doing everything way in advance so we had a 1 month overlap, but only on maintenance fees since our mortgage didn’t begin until the following months.
So we actually got out with very little overlap, we only paid $1K instead of the $6K penalty it would have cost us!
Post # 15
We had to go month-to-month on our apartment (which entails paying more for rent) but we were no longer tied into a contract that we would then have to pay to break. It gave us the flexibility to move when we needed to without penalty.
Post # 16
We moved to a new city after law school and signed a 1 year lease, like @moderndaisy making sure it had a reasonable “out”. We intended to rent for a year and then buy once we got to know the city, but wanted to leave open the possibility of finding something sooner.
We closed on our house with about a month left on our lease. It ended up working out perfectly, because we needed to have some work done on the house before we moved everything in.