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You will find that getting out of your lease is not always so simple. While some landlords are accommodating and willing to work with you to find a solution that works, they are not obligated to do so. Even renters with understanding landlords get consequences for breaking their agreement.
What does it mean to break a lease?
A tenant breaks the lease if they leave the property, or site before their rental agreement expires or without giving termination notice.
Cost of a lease break
Renters are not required to pay a penalty if they break the agreement, but they must cover certain expenditures so that the rental company does not lose money.
Fees for breaking a rental agreement may be included in the agreement. If there are fees, the agreement must state why they are being charged.
The fees a renter must pay are determined by the type of rental agreement and the fees paid by the rental provider. It is important to note that fixed-term agreements can be tough to get out of.
Why a tenant may break a lease
A renter may decide to break a lease for their rental property because of a variety of reasons. Some of the reasons why you might need to break your rental agreement are when you need to relocate for a job or military service, find a more reasonable leasing arrangement, or simply move before your lease expires for any other reason.
When can you rightly break your lease
- If your apartment is uninhabitable and your landlord refuses to make repairs. It is essential to note that you’ll need proof of this.
- If you get extremely ill
- If you are deployed or reassigned by the military, you may be eligible to break your lease without penalty.
How to break your lease appropriately
The first step in considering breaking your lease is to study your rental agreement thoroughly to understand the consequences of breaching it. Look for a clause that allows you to end your contract early.
If you offer termination notices and find someone willing to relet the property, the lease agreement may allow you to terminate the lease. The lease agreement may even allow you the opportunity to end the lease early. However, you’ll most certainly be charged a lot of money to mitigate the losses that the landlord incurs.
There are procedures that tenants can take to make a landlord approve a lease break.
- First and foremost, you need to provide a notice of intention.
- Second, offer to pay for advertising fees so that the landlord can find a new tenant.
- Third, ensure that the property is clean and ready to display.
- Fourth, look for a new tenant. The landlord relies on rent to cover his mortgage and other expenses. The loss of a month’s rent can be such a hit to the landlord.
- Fifth, talk to your landlord. Describe the incident. A deposit can even be returned to you if your landlord is understanding, and you explain yourself well. It happens all the time.
What can happen when you break a lease
The best-case scenario is that the property management or building owner will be compassionate and not penalize you if you breach your lease.
However, under normal circumstances, when a renter breaks a lease, there could be substantial legal and financial ramifications. It may also make it difficult to obtain a rental unit that is reasonable in the future.
You are also at risk of:
Being taken to court
Your landlord could take legal action to recover what is owing to him. If you lose your lawsuit, the landlord may be given a judgment, which might include the rent you didn’t pay, as well as court expenses. If the landlord wins, the money you owe could be deducted from your salary.
Losing your security deposit
The security deposit can be quite large. It usually equals one month’s rent in most circumstances. Even if you maintained the apartment spotless, your landlord has the right to keep the deposit and apply it to the amount you owe.
Debt collection action taken against you
Rather than suing you, your landlord may transfer the debt over to a third-party collector. A debt collector will pursue you for the amount owed. If you continue to refuse to pay, a debt collector might take you to court and sue you for the money owed to them.
Getting a bad reputation
Most landlords require a letter of recommendation from your most recent landlord. If you walked out on a lease, your landlord would have little motive to provide you with a favourable recommendation. This puts your future tenancy in jeopardy.
Does the landlord have an obligation to re-rent?
Fortunately, landlords cannot just sit back and wait for the term to end before suing you for the rent that was due after you departed in most states. Instead, landlords must take reasonable steps to re-let your previous residence. If successful, apply the let earned from the new renter to your debt.
While tenants may be held liable for the costs of advertising and displaying the unit, landlords must take reasonable and proper steps to re-rent. Landlords are not required to offer a unit extra consideration or to reduce the rate in order to re-rent it.
Many landlords, unfortunately, are not aware of their obligation to re-rent for the benefit of the tenant that’s about to depart. Even landlords who are aware of this duty find the idea of attempting to reduce the financial loss of a tenant who has broken their lease agreement difficult to accept. Some landlords respond by keeping the security deposit. They will possibly send a letter, which is often threatening in nature, demanding for the remaining rent balance.
Final thoughts
While breaking your contract isn’t ideal, situations do arise when a renter needs to vacate before the end of the term. It is possible, and the key to success is to be as open and cooperative with your landlord.
