When residents are released from a lease early and the termination fee is waived

(Due to unusual circumstances such as a water loss) , some companies require a mutual release that includes an NDA and a non-re-rent agreement (i.e. they can deny any future applications from the resident). If a resident later discloses the circumstances of their vacating—privately or publicly—in violation of that release, what damages can the company typically pursue? What is the reason for the non re rent in mutual releases if there was no misconduct by the resident?

I’ve never done a non re-rent. I basically tell the resident to not tell their neighbors, not to post on socials, etc and if we find out that they have we void it and charge term fee per lease.

Jamie Phillips Do you think the intention of the NDA is so other residents don’t find out about the release without a termination fee? Also how do you enforce that, or is that provision in an agreement they sign?

Also to prevent lawsuits. It’s a provision in the non disclosure.

Anonymous member yes.

These situations usually do not arise from scenarios as friendly as yours appears to be. Usually both parties leave unhappily and this gives the management company the opportunity to blanket deny re-renting to them in the future because they know that they’ve been problematic in the past. I’ve seen these signed when something really bad happens and we want to let them out of their lease, we don’t want them to talk about it nor would we ever want them to live there again.

Anonymous member 330 Maintenance issue that rendered the unit uninhabitable with no comparable unit available for transfer

The NDA usually stipulates the damages if either party breaks it, also.

Then why did you let them out…no leverage now

NDA