Early Termination (ET) Workflow

Relevant information: 


ET Workflow:

    • Trigger: Tenant requests early termination.
    • LC: Forward early termination request to the PM.
    • PM: Check to see if the tenant qualifies for early termination: Tenants must not have more than two late payments or NSF payments on their ledger. If less than 3 months remain on the lease, the Early Termination request will be automatically denied. It’s better to complete the lease or pay the remaining rent in full rather than terminating early. Refer to Early Term FAQ's: https://www.treatyoakproperties.com/frequently-asked-tenant-questions
    • PM: Respond to the tenant confirming or denying the ET 
    • LC: If PM approves, proceed with the rest of this list. If PM denies ET request, then you can just close this out. Neither you nor the PM will proceed further.
    • PM: Notify the Property Owner of the potential early termination 
    • PM: Schedule Phone Call with Tenant to discuss the terms of the ET
      • Review all scenarios, including:
        • Rental rate adjustments and rent differentials at the tenant’s expense.
        • Utilities remaining in the tenant’s name until new occupancy.
        • Lawn maintenance responsibilities until vacate date.
        • Any other relevant items.
    • PM: Obtain Written Confirmation from Tenant. Send the ‘Request for Written Notice to Vacate’. Follow up until you receive all of the requested items from the tenant.
      • Use the 'Request for Written Notice to Vacate – Early Term' template: https://treaty-oak-property-management-llc.helpscoutdocs.com/article/156-template-apm-charging-early-term-fee?preview=6830a2a8013f8c48a8d2b43f
    • PM: Inform the Owner of the confirmed early termination 
    • PM: Notify Anna + APM Team to charge ET fee 
    • LC: Ensure Karoline is notified we have an early termination. If she was CC’ed on the notification, then no further action is required. If she was not CC’ed, send her an email.
    • LC: Add property to Vacancy Sheet. Tag it ‘Early Termination’.
    • LC: Send moveout instructions to the tenant.
    • LC: Schedule SignOtter to drop supra, combobox, and sign PRIOR to handyman’s walkthrough. Handyman will drop key in the lockbox when he does his walkthrough.
    • MC: Issue WOs for Makeready inspection + locksmith for rekeying 
    • PM: Separate Charges
      • Once the tenant vacates & make ready quote is received, itemize and separate:
        • Security deposit deductions (charged to the tenant).
        • Owner’s expenses (keep to only what is absolutely necessary)
    • LC: Wait until the day the tenant moves out. Then, launch the ‘Listing a Property’ task list and proceed to list. We do not list early terminations until after the tenant has moved out and Walt has walked the property to determine makeready needs. 
      • Rekey takes place only *after* we have found a new tenant, but right before they move in. 
    • LC: Monitor Rent Payments
      • Ensure rent payments continue to be processed on the 1st of every month per the initial email sent to Anna’s team.
      • Note: Early terminations will not appear on the delinquency report as tenants are "moved out."
    • PM: Handle Rent Reductions
      • If a rent reduction is necessary, send the tenant a friendly reminder about their responsibility for covering the reduction and provide the updated rate using the appropriate email template.
    • LC: Notify Tenant of New Occupancy
    • PM: Process Security Deposit (Launch the 'Security Deposit Disposition' task list)
      • Security deposits will be mailed and processed within 30 days of the new tenant’s move-in date
      • All costs in the make ready turn IE rekeying, cleaning & yard maintenance (if applicable) will be charged to the tenant

Early Termination Policy

For reference below is our policy on early terminations:


Early Termination and is covered by paragraphs 27 and 28 of the Texas Association of Realtors Residential Lease Agreement. At the landlord's discretion, the early termination option can still be denied. Early Termination (Feb-Sept) Email Template here.

Paragraph 27 covers Default, whereby a tenant simply moves out and stops paying rent. We call this a “skip” and it results in legal action, damage to the tenant’s credit report, and ultimately the account being placed for collection. In the event the tenant buys a house, our attorney will sue, then after obtaining a judgment, we place a lien on the property. In other words, the worst financial and credit consequences possible are realized, and the price is paid for years to come.

Paragraph 28 provides a graceful exit from the lease. Most tenants want to avoid damaged credit, ruined rental history and collection, a judgment and a lien on their new home, so we more commonly operate under Paragraph 28, which involves locating a replacement tenant to take over the occupancy of the home and allows the tenant to depart on good terms. Below, I’ll outline how this works.

If a tenants wants to move early and wish to do so in a way that follows the lease agreement and avoids negative consequences, all of the costs of the tenants decision to terminate early must be absorbed and paid by the tenant, not the property owner.

The owner of the rental has no obligation to subsidize moving costs by absorbing lost rent and other turnover expenses created by tenant early departure, so all of the financial consequences of your decision to leave early belong to the tenant. 

The following steps must happen if you are a Treaty Oak Properties tenant:
  1. Tenant must not have more than two late payments or NSF payment.
  2. You must provide written notice of your intent to terminate early, including a move-out date.
  3. Your written termination notice must include payment of the reletting fee listed in paragraph 28 of your lease agreement. The reletting fee is typically 150% of one month’s rent. Check your specific lease agreement or renewal for your amount.
  4. You must continue paying rent each month on the first, until a replacement tenant is found and starts paying rent for you.
  5. You must continue your utility services after vacating, until a new tenant moves in.
  6. You must arrange for lawn service after you vacate, until a new tenant moves in.
  7. All other terms and conditions of your lease agreement must continue to be met and you are still responsible for periodic checking up on the property unless you’ve arranged with us to do it for you.

It’s not negotiable. We don’t even have to allow Para 28 departure. So when tenants argue or want to do it a different way (which always involves shifting costs and risk away from tenant and to the owner), we simply don’t do it.

Once the above steps are accomplished, the tenant can leave with a good rental history, receive the deposit refund, and have completed the lease agreement on good terms. The tenant hasn’t technically “broken” the lease, but instead satisfied the requirements of Early Termination.

It should be noted, however, that tenant is still legally obligated until the end of the remaining lease term in the event the replacement tenant defaults.

We do not authorize early terminations during the off-season, October–January, for several reasons:

  • During the fall/winter months, properties require additional maintenance to prepare for inclement weather.
  • Additionally, October - January falls outside of the typical leasing season, and it is often not a reasonable amount of time to re-lease the property. During the off-season, properties can stay on the market for as long as four months.

If tenant wished to utilize the early termination option during leasing season February and September, they will need to inform us so we can begin the process at that time.
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