Legal Question in Landlord & Tenant Law in Missouri

House Lease

We signed a lease with an option to buy on a house in August. Our financial sitation has changed and we are struggling to make the lease payment. We are also very unsure as to whether we'll be able to afford to buy the house when our lease is up (August 2009). Our lease agreement says that by breaking the lease, we are accountable for ''the lost lease revenue vs. the original lease + a fee of $925 (equal to 1 month rent) as an early termination fee''. What does this mean?


Asked on 1/09/08, 7:32 pm

1 Answer from Attorneys

Anthony DeWitt Bartimus, Frickleton Robertson & Gorny, PC

Re: House Lease

It means the landlord doesn't want you to breach the lease.

Under Missouri law, a landlord cannot be punitive. He can't lease you a house for 12 months, and if you break the lease in the 2nd month, say "okay, I want the other 10 months rent." Instead he has to "mitigate damages." He does this by reletting the property. Under MO law he can properly charge you for the cost of reletting (newspaper advertisement, carpet cleaning, etc.) and if he is forced to relet at a lower sum (let's say, $900), he can ding you for the extra $25 a month for ten months. If he rents it for more than that, he doesn't have to credit you with the increase.

I am not sure the termination of lease fee is lawful since it would appear to be a penalty, and penalties are not favored under MO law. It is doubtful it is what lawyers call a liquidated damages clause either. But a court might still enforce it.

Your best bet is to go to the landlord, explain your situation, and give them the longest notice you can. Ask for them to waive the fees and assist them in getting the property relet before you move. If you do this and they still attempt to enforce the fee, you have a better equitable position in front of a judge to argue that the fee should not apply because it is a penalty, and you have done everything properly.

Good luck.

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Answered on 1/10/08, 10:09 am


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