Our leasing guarantee states that if a tenant does not fulfill at least 12 months of a lease term, we will find you a new tenant for free.

Lease Break Fee and Leasing Commission Waiver Policy.

Understanding Our Lease Break Fee Guarantee

As a landlord with Aloe Property Management, here's what you need to know about our lease break fee policy:

Lease Break Fee Structure: If a tenant breaks their lease, we collect a Lease Break Termination Fee equal to two months' rent after the final prorated payment. This fee covers your potential vacancy costs (up to 30 days) and our re-leasing expenses. You'll receive a prorated portion of this fee based on actual vacancy days, up to a maximum of 30 days of rent if tenant pays.

First Year Guarantee: If a tenant we placed breaks their lease within the first 12 months, we waive our standard $750 leasing commission when we find you a replacement tenant. This is our commitment to you—if a tenant doesn't fulfill at least one year, we'll re-lease your property at no additional cost to you.

After the First Year: If a tenant renews and then breaks their lease during any renewal period (after the initial 12 months), we retain the Lease Break Fee collected from the tenant and charge the standard $750 leasing commission for finding a replacement. Our guarantee applies only to the initial 12-month term.

Important Notes: If you sell the property or terminate our management services, any collected Lease Break Termination Fees are retained by Aloe Property Management.

<aside> 💡

This does not apply to any Domestic Violence, Military Orders, Property Conditions, Legal Actions, Landlord Actions, Tenant Death, or Tenant Disability.

</aside>

If a resident chooses to terminate their lease early and does not pay the required lease break fee, the owner will not receive a 30-day payout for the additional month of rent that would normally be advanced. Aloe Property Management will continue to pursue collection of the lease break fee on the owner’s behalf; however, in some cases, residents may be unable to pay or default on this obligation. Whether or not the lease break fee is successfully collected, Aloe PM will waive the re-leasing commission for any new tenancy initiated within 12 months of the original tenant’s move-out.

In the event a resident terminates their lease early and does not pay the required lease break fee, the owner will not receive a 30-day payout for the additional month of rent that would normally be advanced. Aloe Property Management will continue to pursue collection of the lease break fee on your behalf; however, it is common for residents not to pay due to extenuating life circumstances such as job loss, financial hardship, family emergencies, or other personal challenges that lead to an unexpected move.

Typically, we see the lease break fee successfully paid only when a resident is purchasing a home or relocating for employment. In these cases, their financial situation is usually stable enough to fulfill the obligation.

While we take great care in screening and selecting excellent tenants for your property, situations can change unexpectedly, and we cannot always guarantee whether a tenant will be able to pay the lease break fee.

These funds that Aloe retains through management operations allow us to offer this protection and flexibility to our landlords, as lease breaks do occur and some residents are simply unable to pay. Regardless of collection outcome, Aloe PM will waive the re-leasing commission for any new tenancy initiated within 12 months of the tenant’s move-out.

Property Management Terms:

Lease Break Fee and Leasing Commission Waiver Policy. Aloe Property Management charges a Lease Break Termination Fee equal to two (2) months’ rent, assessed after the final prorated rent payment. This fee is designed to cover potential vacancy costs for the Owner (up to 30 days) and the expenses associated with re-leasing the property. The Owner will receive the prorated balance of the Lease Break Fee equivalent to any actual days the property remains vacant, not to exceed 30 days of rent. If a tenant procured by Aloe Property Management breaks their lease during the initial lease term (defined as the first 12 months of occupancy), Aloe Property Management will collect a Lease Break Fee from the tenant in accordance with the lease terms. In such cases, the standard leasing commission of $750.00 will be waived for the Owner for the replacement lease entered into within that first year. However, if the tenant renews their lease and subsequently breaks the lease during any renewal period (i.e., after the initial 12-month term), Aloe Property Management shall be entitled to both (i) retain the Lease Break Fee and (ii) charge the Owner the standard $750.00 leasing commission for securing a replacement tenant. Aloe Property Management does not guarantee tenancy beyond the first 12 months. If in the event the Owner elects to sell the property or terminates management services with Aloe Property Management, the Lease Break Termination Fee will all be retained to Aloe Property Management.