Breaking a lease can have significant legal repercussions, as a lease agreement is legally binding. Yet sometimes, staying in the current rental property any longer is not feasible, and an early lease termination is the only logical solution.
There are ways to get out of an apartment lease or other rental contract, and understanding what happens if you break a lease will help you minimize costly ramifications that may occur if you need to get out of a lease early.
How to Break a Lease Early
These six steps will help you avoid legal consequences if you break your lease contract before the lease term ends.
Step 1 – Review Your Rental Lease Agreement
One of the first actions you should take when ending a lease early is carefully reading through your rental agreement.
Be on the lookout for answers to these critical questions:
- Does your rental agreement have an early termination clause?
- Has your landlord or property manager breached a contract that would justify breaking the lease? (Examples: Entering the unit without prior written notice, lack of maintenance, health and safety code violations even in common areas)
- Will you lose your security deposit?
- Are you required to find your replacement tenant?
- Can you sublet (look to your rental agreement for words like “sublet,” “sublease,” “early release,” or “reset”)?
- Will you need to pay the remaining rent for the entire lease period?
The answers to these questions will determine whether or not it’s possible to break your lease with minimal hassle and provide you with a more robust exit strategy.
If you have a month-to-month lease, you have likely pre-paid your monthly rent, so getting out of this type of lease early poses a different set of challenges than breaking a standard lease.
Step 2 – Talk to Your Landlord or Property Manager
Communication is critical when discussing an early lease termination with a landlord. Take the following advice to heart when preparing to make your request to your landlord:
Be Open and Honest
When speaking to your landlord, state that breaking your lease is unplanned and a last resort. The best scenario is that your landlord will let you break the lease early if finding a tenant to replace you is easy.
Despite your rent payments making up a portion of their livelihood, if you honestly explain your situation to your landlord, they may sympathize and let you out of the lease early, even if the lease terms are strict.
Remember that in many states, domestic violence victims can terminate a lease early without penalty (renters may have to provide the landlord with a police report to prove domestic violence).
Give Plenty of Advance Notice
Once you decide to move out, give your landlord a notice of intent to vacate. Giving as much notice as possible will make their life easier because it will give them more time to find your replacement.
Providing enough notice could influence whether or not you and your landlord arrive at an agreeable resolution.
Step 3 – Consider Reletting or Subletting
If you’re having trouble negotiating a clean break with your landlord, consider finding a new renter to relet or sublet the property.
Finding a replacement on your own is a great way to alleviate your landlord’s fears about losing money when you move out.
Here are the differences between the two options:
- Reletting: Reletting is when you or your landlord find a new renter. The new renter will sign an entirely new rental agreement with your landlord, voiding your original rental agreement and releasing you from legal obligations.
- Subletting or Subleasing: Similar to reletting, subletting is when you find a new renter, but there is no new rental agreement between the new renter and landlord. The new renter signs a sublease agreement with you and pays rent to you directly. Your name remains on the original rental agreement. This makes you legally responsible for anything that happens to the property, including if the new renter is late paying rent. Because your original lease is still active, you aren’t technically terminating a lease if you sublet, and you won’t get your security deposit back until the end of your lease term. Not all landlords allow subletting. Check your rental agreement or ask your landlord before you consider subletting.
Additionally, consider renting the rooms in your rental unit to cover any rent you cannot make. Instead of breaking a lease because you can’t afford the monthly rent, use our Room Rental Agreement to rent the rooms in your dwelling (with your landlord’s permission).
It’s still your landlord’s property, so making sure they approve the new tenant is fundamental.
Mitigation of Damages (Landlord’s Duty to Re-Rent):
In most states, landlords are required to make reasonable efforts to re-rent the property after a tenant breaks a lease. This is known as the duty to mitigate damages. The tenant may still be responsible for rent until a new tenant is found, but this obligation ends once the property is re-rented.
Step 4 – Use a Lease Termination Letter
If your landlord doesn’t allow reletting or subletting, you could request to end the lease with an early lease termination letter.
You’re legally allowed to vacate the premises without incurring any penalties if your landlord does anything that violates the terms of the lease agreement.
Use this strategy as a last resort if your landlord is legally culpable and unreasonable.
Verify if any of these claims are true:
- Landlord illegally enters the property: Has your landlord failed to give you advance notice before entering the property? (Most state laws require landlords to give tenants 1 to 2 days prior notice before entering under non-emergency situations.)
- Landlord fails to uphold provisions in the agreement: Has your landlord failed to repair broken fixtures or provide agreed-upon utilities?
- Landlord fails to provide a suitable living environment: Has your landlord allowed the property to fall into disrepair (no heat or running water)? Is the property so uninhabitable that it’s dangerous for you to continue living on the premises? This is legally known as a “constructive eviction.”
- The property is an illegal structure: Does your living situation violate regulations in your state? For example, in some states, basement apartments are unlawful, so your dwelling unit might cause your lease to be null and void.
- The lease agreement has illegal terms: Are there terms in your lease agreement that are unenforceable or illegal? This requires more research into your state’s landlord-tenant laws regarding leasing real property.
If any of these situations have occurred, you have grounds to terminate your lease and may be able to file a lawsuit in small claims court.
Also, constructive eviction laws govern the situation when a landlord or property manager fails to maintain a rental unit, and the original tenant cannot use and enjoy the space.
As a tenant, you still have legally protected rights. Consult an attorney to discuss landlord-tenant laws and your rights.
Additionally, suppose you have to break a lease due to military service. In that case, you may be able to get out of your lease early without penalty (the Servicemembers Civil Relief Act protects you if you are an active duty service member).
Ensure you have a written record of all questionable interactions to prove a landlord’s wrongdoing in early lease termination.
Step 5 – Pay the Remaining Rent
Once you’ve exhausted all your options, the last recourse is to pay off the rent for the remainder of your lease period.
Although it isn’t always financially feasible for most people, it’s the only guaranteed way to avoid paying the penalty for terminating a lease and the possibility of adverse credit report reporting.
If you’re worried about paying everything off immediately, discuss with your landlord the possibility of paying off the balance in installments.
For a less expensive option, try negotiating with your landlord about paying rent until one of you finds a new renter.
However, stay prepared to hand over the agreed-upon amount of cash to move out because it’s best to always plan for the worst.
Step 6 – Return of Security Deposit
Tenants are generally entitled to the return of their security deposit, minus any lawful deductions for unpaid rent or damages. The tenant should conduct a walkthrough with the landlord and document the condition of the property to avoid disputes.
Legal Reasons To Break a Lease Without a Penalty
The lease usually lasts one year and may include stipulations under which one or both parties can break the lease early. The reasons to break a lease early will vary from state to state but typically include the following:
- Active Military Duty (Servicemembers Civil Relief Act – SCRA): The SCRA provides protections to active-duty military personnel. If a tenant enters active military service after signing a lease, they can terminate the lease by providing written notice and a copy of their military orders to the landlord. The lease typically ends 30 days after the next rent payment is due. [1]
- Uninhabitable Conditions (Breach of the Implied Warranty of Habitability): Landlords are legally required to maintain rental properties in habitable conditions. If a rental unit becomes uninhabitable and the landlord fails to make necessary repairs within a reasonable time after being notified, a tenant may have the right to break the lease without penalty. The tenant must typically give notice of the issue and allow the landlord an opportunity to fix it. [2]
- Landlord Harassment or Privacy Violations: Tenants have the right to “quiet enjoyment” of their rental property. If a landlord engages in actions such as entering the property without notice, changing locks, or shutting off utilities to force a tenant out, the tenant may be legally entitled to terminate the lease. The tenant should document the harassment and provide notice to the landlord.
- Domestic Violence, Stalking, or Sexual Assault: Many states have specific laws that allow victims of domestic violence, stalking, or sexual assault to break a lease early without penalty. The tenant may be required to provide documentation such as a restraining order or police report, along with notice to the landlord.
- Lease Clauses Allowing Early Termination: Some leases include an early termination clause, which outlines the conditions under which a tenant can break the lease. This may involve providing a certain amount of notice and paying an early termination fee.
- Landlord Non-Compliance: If the landlord or tenant fails to meet lease obligations, such as making necessary repairs or providing essential services, the other party may have the right to terminate the lease early. The breaching party must be notified in writing and given a reasonable time to resolve the issue or move out.
What Happens When a Tenant Breaks a Lease Illegally
It’s essential to know the potential consequences of breaking a lease early.
While you may not have any other option but to break your lease, you may find yourself:
- Facing a lawsuit by your landlord – A lease is a legal contract, which means your landlord is within their legal right to pursue you in court for remaining rental payments, as well as damages for loss of income and the cost of finding a new tenant. It would be best to avoid this worst-case scenario because it could subject you to hefty fines and fees and adverse reporting to the credit bureaus.
- Paying out-of-pocket – Lease agreements often include penalties and fees for breaking a lease. Most commonly, an early termination fee is two months’ rent. Various state laws limit the maximum amount a landlord can charge, so check your state’s rules and regulations.
- Losing your security deposit – Besides possible early termination fees, you’ll likely have to forfeit the security deposit you paid when you first moved in. Be prepared for this loss of money, as it’ll impact your new apartment hunt.
- Damaging your credit score—Besides all the monetary consequences, most renters don’t realize that breaking a lease can negatively affect their credit score. Landlords and property management groups often report your rental history to credit reporting agencies, and breaking a lease is considered a significant black mark. A poor credit score will make it more difficult to rent an apartment in the future.
Resources for Renters
If you’re a renter facing challenges or uncertainties, there are numerous resources available to help you navigate your rights and find the support you need, from local tenant unions to national organizations dedicated to housing assistance.
Tenant unions – Tenant unions are great resources for tenants to determine the specific state laws or laws that govern lease terminations, evictions, and lease agreements.
It’s worth contacting a tenant union when you suspect you might have to terminate your lease early. These organizations can explain your rights and suggest additional consumer services to help your situation.
Your city or state may be able to provide resources for renters. There are also some national resources for renters, such as:
