How To Break a Lease and Why You Shouldn’t (2024 Guide)
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Most people sign a lease intending to stick with it, but it’s sometimes necessary to break one. If you have to move for a new job, you encounter financial hardship, or you’re dissatisfied with your living conditions, an unexpected move might come up. Still, it’s best to be aware of potential consequences such as forfeiting your security deposit or dealing with a civil lawsuit.
A lease is a legally binding document, so breaking it could come with legal ramifications and financial penalties. Below, we’ll walk you through when and how to break your lease and why you shouldn’t in some situations.
Understanding Your Lease Agreement
Your lease agreement is a contract between you and the landlord that outlines the terms and conditions for renting a property. It should specify the lease term, the monthly rent amount, and any security deposit requirements. Other common components include policies related to pets, utilities, occupancy, maintenance, and repairs.
If you’re considering breaking your lease, look for its clauses that address early termination. Your lease may require 30 to 60 days’ notice and two months’ rent for early termination, for example. Some leases have a “break clause” that permits termination under agreed-upon circumstances such as job relocation.
Steps To Break Your Lease
Careful planning and documentation can help you minimize fallout with your landlord if you decide to break a lease. Follow these steps to navigate the process as smoothly as possible.
Review Your Lease Agreement
Carefully review the lease agreement to understand your rights and responsibilities, specifically regarding early termination. Look for clauses that outline the conditions under which you can break the lease and the possible penalties for doing so. You may have to forfeit your security deposit or pay an early termination fee to buy out your lease.
If your lease doesn’t contain an early termination clause, research landlord-tenant laws and tenant rights in your state. You may be required to provide 30 days’ notice or continue paying rent until the property owner finds a new tenant. Some state laws may give tenants the right to terminate a lease without penalty.
Consult an Attorney or Local Tenants’ Union
Since breaking a lease could lead to financial or legal complications, it’s advisable to seek legal advice before taking action. Knowing your options will help you to understand the ramifications of breaking a lease. You may also want to consult a local tenants’ union or association if you want to break your lease due to poor living conditions. These organizations are dedicated to improving or maintaining housing conditions and may help you to navigate your rights.
Communicate With Your Landlord
Talk to your landlord about the situation and provide proper notice. Respectfully explain your reasons for wanting to break the lease and discuss the options available to you. Here are a few suggestions you can make to help fill the vacated spot:
Offer to assist your landlord in finding a replacement tenant. This will minimize their losses and may help you avoid the penalty fee.
Discuss the possibility of a lower penalty or a flexible move-out date. If your issue is that you can’t afford rent, releasing you from the lease may be less of a hassle for your landlord than eviction proceedings.
Finding a subtenant could spare you from an early termination fee, provided your lease doesn’t prohibit subletting. The new renter could cover the remaining rent so you aren’t making two payments at once.
Document Everything
Document any interactions or agreements in writing as you communicate the situation to your landlord. Save a copy of all emails or letters and take detailed notes during any verbal conversations. Send an email to your landlord summarizing what you discussed during any in-person or over-the-phone conversation and confirm all agreed-upon next steps.
Having a paper trail of written communications will be invaluable if disputes arise or if legal action becomes necessary. Documentation is especially important if issues with your landlord or living conditions are the reasons you’re moving to a new apartment.
Meet All Termination Conditions
Be prepared to confront penalties if your lease includes an early termination clause. These could range from losing your security deposit to being liable for any remaining rent payments until a new tenant is found.
- You may be able to negotiate more favorable terms if your landlord has failed to meet their obligations. State law may allow you to break your lease without penalty in special circumstances.
Reasons To Break Your Lease
Breaking your lease may be the only option in some cases, even if it’s not a simple or convenient solution.
Job Relocation
Job relocation is one of the most common reasons why people consider breaking their leases. Some lease agreements contain a job relocation clause that allows tenants to terminate them early without significant penalties if they need to move for work.
Be prepared to provide formal documentation regarding your job transfer or new employment, such as a signed letter from your employer. Ask your employer about relocation assistance if the landlord isn’t cooperative. Many companies offer a relocation package for new or transferred employees that covers the cost of breaking a lease, among other moving expenses.
Uninhabitable Living Conditions
Almost all states recognize the implied warranty of habitability, a legal term for a tenant’s right to safe and livable housing. This right is not waivable, so it exists regardless of any clauses or waivers in the lease agreement. Landlords are responsible for making sure that properties meet applicable housing codes and must address habitability issues promptly.
Conditions such as inadequate heating, lack of running water, major roof leaks, and plumbing issues can render a rental unit legally uninhabitable. If you notified the landlord of an issue and they failed to make repairs, you may have legal grounds to terminate the lease without penalty.
Landlord Harassment
Persistent harassment from a landlord could make your living conditions unbearable and provide a valid reason for breaking a lease. Examples of harassment include:
- Actions that intentionally disrupt your quiet enjoyment of the property
- Deliberate destruction of your property
- Excessive or unfounded complaints
- Physical intimidation or threats
- Refusal to accept or acknowledge rent payment
- Refusal to make essential repairs
- Retaliatory actions after you complain about a code violation
- Unlawful entry into your apartment
- Documented instances of harassment may enable you to legally break your lease without penalty or even pursue legal action. If you aren’t sure of whether something qualifies as harassment, seek legal advice from a local attorney or legal aid society.
Domestic Violence
Most states provide legal protections for survivors of domestic violence or sexual assault that permit breaking a lease without financial repercussions. This makes it easier for survivors to leave their abusers and ensure their safety. Survivors will likely need to provide documentation such as a related restraining order or police report.
If you find yourself in this situation and no longer feel safe in your apartment, reach out to the National Domestic Violence Hotline at 800-799-7233. You can also use the live chat feature at thehotline.org, text START to 88788, or search the group’s database of local resources.
Military Orders To Relocate
Military service members have the right to early lease termination without penalty if they receive deployment or relocation orders, according to the Servicemembers Civil Relief Act (SCRA). This law applies to members of the Army, Marine Corps, Navy, Air Force, and Coast Guard on active military duty, as well as members of the National Guard mobilized for more than 30 days.
To qualify, you or the primary breadwinner of your household must receive permanent change of station (PCS) or deployment orders that cover 90 days or longer. You need to submit a written notice of lease termination and a copy of orders to your landlord. You may deliver the required notice and documentation to your landlord by hand, email, private carrier, or regular mail with a return receipt.
Illegal Apartments
If you discover that your apartment is illegal or your lease contains unlawful provisions, you typically have the right to terminate the lease without penalty. The lease itself may even be considered invalid, entitling you to the return of all or some of your rent and security deposit.
A rental unit may be illegal if it violates zoning laws or if your landlord has converted a basement, attic, or empty room into an apartment without proper permits. Noncompliance with local or state housing codes can also render an apartment illegal.
Why You Shouldn’t Break a Lease
Breaking your lease should be a last resort, as it could negatively impact your finances and future housing opportunities. You may lose your security deposit and be liable for the remaining months’ rent.
Here are a few good reasons not to break your lease:
Our Conclusion
The decision to break your lease is fraught with various legal and financial implications. While there are legitimate reasons for terminating your lease, doing so without financial penalty is difficult and unusual. Consult an attorney, review lease terms carefully, communicate with your landlord, and document all interactions. Be informed and prepared to minimize the negative repercussions of breaking your lease.
FAQ About Breaking a Lease
What is a reasonable early termination fee?
A reasonable early termination fee is one or two months’ rent, though the metric varies from state to state. Consult a local real estate attorney if you’re unsure of whether an early termination fee is reasonable.
What is the difference between a rental agreement and a lease?
The main difference between a rental agreement and a lease is the duration of the stay. A rental agreement generally covers a short-term or month-to-month tenancy. A lease covers a longer stay for a predetermined time, typically a year or longer.
Is an apartment lease an example of a contract?
Yes, an apartment lease is an example of a contract. As long as the lease is properly signed and contains all elements of a contract, it’s a legally binding contract between the tenant and landlord.
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