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If a party enters active military service after signing a lease he has a right
to break the lease under federal law. (War and National
Defense Servicemembers Civil Relief Act, 50 App. U.S.C.A. § § 501 and
following.) The party must be part of the "uniformed services," which
includes the Armed Forces, Commissioned Corps of the National Oceanic
and Atmospheric Administration (NOAA), commissioned corps of the
Public Health Service, and the activated National Guard. He must give
his landlord written notice of his intent to terminate the tenancy for
military reasons. Once the notice is mailed or delivered, the tenancy will
terminate 30 days after the date that rent is next due, even if that date is
several months before his lease expires.
Apparently, the lease contract (Room Rental Agreement) signed by the landlord
and the tenant expressly provides for a starting and ending date thus, making
it a fixed-term tenancy for a period of twelve (12) months beginning February 1,
2002 to January 31, 2023. This is clearly contrary to the claim of the tenant in
her Written Notice that the contract is a month-to-month term. The fact that
the tenant pay in monthly installments does not change the fact that she owes
the landlord for the entire amount for the remaining period of the agreement.
Further, the tenant's reason for terminating the contract is not falling under
the justifiable circumstances as discussed above.
Hence, in this case, the tenant cannot rescind the agreed period of the contract
as this constitutes a breach of contract and is legally actionable. It is submitted
therefore the following suggestions and/or recommendations the landlord may
take to vindicate his rights:
1. SEND A DEMAND LETTER TO THE TENANT
The landlord can send a demand letter to the tenant asking her to pay
the entire amount of rentals for the remaining period of the contract.
Court litigation can be a complex, expensive, and time-consuming
process hence, the landlord should try to resolve the problem out of
court by sending a demand letter to the tenant. The demand letter
should notify the tenant of the breach of contract. While it might seem
logical that the tenant is in breach, you might be wrong as in this case,
the tenant thought that her contract is a month-to-month. This can be
used as evidence in court to show that the landlord had tried to resolve
the issue before starting the lawsuit in case the desired result of the
demand letter becomes futile. The landlord should collect and list
everything that proves the breach has occurred. It will let the tenant
know that the landlord is serious and he can use all the presented
evidence for a lawsuit.
If the tenant cannot afford to pay the entire obligation for the remaining
period you ask the tenant to suggest a particular solution. In one case,
the Court rule that the landlord may re-rent the premises abandoned by
the tenant on the tenant's account and hold the tenant liable for the
difference between the rent required by the original lease and the rent
paid by the substitute tenant. Ruston v. Centennial Real Estate, 166
Colo. 377, 445 P.2d 64 (1968). Accord McArthur v. Rostek, 483 P.2d
1351 (Colo.App.1971) (not selected for official publication); Grolier
Society, Inc. v. International Realty Co., 482 P.2d 394 (Colo.App.1971)
(not selected for official publication). In Ruston, we stated that "[a] lease,
like other contracts, is to be reasonably interpreted according to the
apparent intention of the parties." In fact, the term of the contract
provides for a provision in this situation. Under Section 15 of the Room
Rental Agreement, in case of default by the tenant, the tenant is
responsible for the landlord's cost of re-renting. Tenant shall be
responsible for fees, attorney's fees, advertising, and preparation for
renting. The tenant shall continue to be responsible for rent,
expenses, damages, and losses. Any rent received from the re-
renting shall be applied to the reduction of money the Tenant owes.
Once the landlord re-rents the property, the tenant is no longer legally
responsible for the rent after the new tenant starts paying rent. However,
if the landlord is unable to secure a substitute tenant after making
reasonable efforts to do so or if the premises have been rendered
unmarketable, the landlord is entitled to an amount equal to the full
amount of rent reserved in the lease, plus any other consequential
damages. See Grayson v. Mixon, 176 Ark. 1123, 5 S.W.2d 312 (1928). Cf.
Kulm v. Coast-to-Coast Stores Central Organization, Inc., 248 Or. 436,
432 P.2d 1006, 1009 (1967) (breach of an agreement to renew the lease).