What Is a Tenant Transfer Clause?

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Your landlord may charge fees for your early move-out.
Your landlord may charge fees for your early move-out. (Image: Comstock/Comstock/Getty Images)

Before you move into a rental property, you usually sign a lease agreement with the landlord. Your lease agreement usually details the term of the lease and may also contain a tenant transfer clause. This clause determines what happens if and when you have to move out before the end of the lease term.

Function

A fixed-term lease agreement usually details a minimum amount of time during which the tenant has to continue living in the rental property and pay rent to the landlord. However, sometimes the tenant has to move out before the end of this fixed term due to business or military requirements. The tenant transfer clause minimizes confusion and conflict in this situation because both the landlord and the tenant have agreed to the terms of the transfer.

For Business Purposes

If you have to move out because of business reasons, like if your company transfers you to another city, the tenant transfer clause determines how you can break your lease agreement. The tenant transfer clause may also contain details on the fees you need to pay for breaking your lease. To reduce the amount you have to pay your landlord, you may talk to your employer about paying some or all of the amount during negotiations regarding the transfer.

For Military Purposes

If you have to move out during the term of your lease due to military duty, the landlord may or may not be legally required to give you permission to break the lease. The tenant transfer clause spells out any conditions of breaking the lease in this situation. In this case, you may also refer to the tenant transfer clause as the military clause. You may have to provide your landlord with your official orders or letter as proof to comply with the tenant transfer clause.

Charges

If you break your lease, you usually have to pay various fees upon move-out. You may have to pay the rent between the time you move out until the end of the lease term or until a new tenant moves in. If the landlord manages to find a new tenant, you may still have to pay a re-letting fee, which covers the landlord's expenses in finding another tenant. The tenant transfer clause determines the amount you have to pay the landlord.

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