We are a short term rental agency and we provide accomodation in France. We have a rental agreement
with an american owner of a 6 bedrooms apartment
in paris. However, the owner just sent us this email:
"Effective immediately (April 30th) do not rent the apartment to anyone else for any period of time and cancel any rental contracts beyond May 14th, 2013. Any rental contracts beyond May 14th will not be honored".
The reason is because the owner sold his apartment without notifying us. We think the sale contract will be signed mid-may/ end of may. Therefore, we have about 8 confirmed rentals coming up from May 25th until end of the year that we need to cancel. The problem is we will not find any alternatives accomodations for the canceled period and clients will be angry against us. We are not responsible for this cancelation and it will create damage to our company. In addition to that, we will have to refund our clients meaning loosing our commissions over those rentals and it will create a loss for us since we have put marketing and other expenses in order to find tenants.
In the rental agreement with the owner it says:
"This contract may be canceled during its term by registered letter, with acknowledgment of delivery, with a 3 month notice minimum in order to allow "the company" to honor reservations in progress. it is understood that all leasing agreements of any kind made by "the company" to the owner before the date and hour of the beginning of the notice will have to be honored without reserve or modifications except by cancellation on the part of the tenant. In the even of termination of this contract without notice or for any reason that prevents the owner from honoring this contract, "the company" reserves the right to apply a penalty of 50% of the expenses of rentals over the period refused in the form of penalties for moral wrong and financial damages
due to the termination of the contract. Additionally, "the company" reserves the right to rebill any difference in cost of the tenant resulting from having to move or "upgrade" the tenant due to the lack of other comparable availabilities. Any differential in price to the tenant by "downgrading" for lack of other availabilities will be credited to the account of the tenant".
We have consulted a lawyer in France, but it has been recommended us to start a legal procedure in the USA where the owner is resident. Please let us know what it can be done? There are approximately 100.000 USD rentals cancelation in rentals. You can imagine the damage it will caused for us. We need help to write an official letter to the owner for its reply of contract termination with no possibility to honor the reservations. Please let us know how it will works and price for writting a letter and maybe to start a legal procedure in the USA. Looking forward to hearing from you soon.