How to Break a Lease on Your Apartment
There are a number of valid reasons for renters to decide to break an apartment lease, but no matter the reason, it’s always a difficult situation for both the landlord and the tenant. Whether you have to relocate for a job, take on a roommate, or move for any other reason, breaking a lease should be done with proper care and planning.
A lease is a binding legal contract between the tenant(s) (lesee) and the landlord (lessor). Although a rental agreement essentially allows you to make payments on a monthly basis (rather than upfront), it doesn’t constitute a month-to-month arrangement.
Depending on your reasons, your landlord may be sympathetic and not penalize you. At worst, however, breaking a rental contract could have serious consequences. If you break a lease without legal grounds to do so, you may:
- be required to pay the rent for the remaining months on your lease
- be subject to legal action from your landlord ; and/or
- receive a negative mark on your credit report
To protect yourself, it’s important understand the steps involved in properly breaking an apartment lease so it has the fewest negative consequences or both you and your landlord.
Here are the important steps and considerations when you need to break a lease:
Read Your Rental Agreement
The very first step to take when you’re considering breaking lease is to thoroughly read the rental agreement you signed upon moving in. Read through each section to see if any include information about how to break a lease or what the penalties are. Look for words like “early release,” “sublet” and “relet,” and when you find them, take note of the page number so you can read through it again later if you need to.
The lease agreement may indicate that you have to give notice of your intention to vacate the apartment one or two months in advance or that you have to find a replacement renter. Many leases will also have an option for terminating the agreement immediately, but they often come with hefty fees and you may lose your security deposit on top of that.
Talk to Your Landlord
The landlord-tenant relationship can be tricky, but open communication and total transparency are the best ways to handle a touchy situation like leaving before the lease term is up. In fact, I’ve almost had to break a lease twice before, and the first thing I did each time was email my landlord and building manager– they appreciated knowing what was going on ahead of time and were even able to offer some solutions.
Your landlord is a business person, but they’re a human being too, so if you’re honest about what’s going on, they might be understanding (of course, there’s always a chance they may not be). But if you’re a responsible renter and have a good relationship with your landlord, the process of breaking an apartment lease might go pretty smoothly.
To stay on good terms, give your landlord as much notice as possible. If you need to break lease immediately and cannot give the standard amount of notice specified in your rental agreement, offer to find someone to sublet from you.
Find a New Renter
In many states, both you and your landlord are required to try to find a new renter to replace you if you move out early. In legal terms, this is known as “mitigating the damages” from breaking an apartment lease– in other words, lessening the rent amount still owed for the remaining months.
There are two possible scenarios for finding a new renter: Subletting and re-renting. Here’s a breakdown of each:
- Subletting: Subletting is when you or your landlord find someone who’s willing to take over your current lease. While they’ll likely sign their own sublease agreement, the lease will still be under your name, making you legally responsible if they smash a hole in the wall or forget to pay rent for a few months. You won’t get your security deposit back until the end of the original lease term, even if you find a subletter, so keep that in mind.
- Re-renting: Re-renting involves finding a new tenant for the unit, but unlike subletting, they will sign a brand new lease agreement and pay their own security deposit. For the landlord, this often means re-listing your unit and showing the property to interested renters.
If your landlord isn’t able to find a new renter quickly, you may be required to pay for the days the unit remains vacant. Renting your apartment isn’t the landlord’s number one priority, so finding a renter to replace you may help speed things along. Remember, your landlord doesn’t have to go with the first person who wants to sublet or re-rent your apartment. There are a number of things that might keep a landlord from deciding to rent to an applicant, including credit score, rental history, availability of funds and more.
In some states, both you and your landlord are legally responsible for trying to find a new renter. However, since you stand to lose a lot of money if you can’t find one, it’s a good idea to put in a lot of effort from the beginning. Check with your friends or post a Facebook status to see if anyone you know is looking for a place to live!
Consider Termination Offers
If you’re unable to take the time to find a new renter or you’re in a situation where you need to leave the apartment immediately, you may need to consider the termination offer detailed in your lease. Breaking lease agreements often requires paying two or three months’ rent and forfeiting your security deposit altogether, though every lease will be different.
Again, it’s a good idea to check in with your landlord at this point, because there’s always a chance they’ll reduce the fees involved or return your security deposit, even if the lease says they won’t.
Remember that this situation may be difficult for you, but it’s also a huge financial burden on your landlord who’s depending on your rent money each month as a substantial part of their income. A good landlord-tenant relationship can go a long way toward making the situation more bearable for both parties, so make sure you’re staying positive and patient.
Be Prepared to Pay
Breaking a lease is not cheap for you or your landlord, so be prepared to shell out at least some money. If you don’t pay to terminate your lease immediately, depending on where you live, you’re responsible for paying your rent up until the time you or your landlord finds a subletter or re-renter.
In many states, if your landlord makes an effort to find a new renter and can’t, you’ll have to continue paying the rent until your lease term is up. Even if your landlord is able to find a renter but can’t charge them as much as they charged you, you may be liable for paying the difference.
Get Everything in Writing
From the very first conversation you have with your landlord about potentially breaking your lease, it’s important to get everything in writing– especially any conversations regarding money. This will protect both of you legally if for any reason the situation becomes litigious.
The best way to manage this is to make sure your conversations are over email. If you do have any conversations over the phone or in person, be sure to take notes. When the conversation is finished, shoot your landlord an email of what you covered during the conversation, and get their written confirmation that what you sent is correct.
Just send a simple note that says, “Hello, just wanted to make sure I understood our conversation points correctly– can you confirm this is what we agreed on?”
Seek Legal Advice
If you feel you’re in a situation where your landlord is taking advantage of you, you can prove your apartment is unlivable or you’re being charged too much, it’s a good idea to seek legal advice.
Know the Exceptions
Every state has different laws when it comes to breaking lease agreements, but there are several that allow a tenant to leave their apartment before the lease term is up if there are special circumstances involved. Some of the most common reasons you may be legally allowed to break a lease without consequences include:
Landlord fails to maintain the property:
In most states, landlords are required to maintain a fit and habitable property in the following ways:
- Providing running water at all times
- Performing repairs
- Adhering to Health and Safety Codes
- Keeping all common areas clean
- Providing proper trash bins
If a tenant believes that there is a significant health or safety violation, they can either make a complaint with their local Department of Public Health, or can attempt to complain to their landlord directly.
- Complain to Department of Public Health– Contact your local Department of Public Health and Safety to file a complaint against your landlord. They will open a claim and send someone out to inspect the issue. If they are able to confirm your complaint, they will send notice to your landlord requiring him/her to address and fix the problem within a certain amount of days, which varies by state. Make sure to check your local statutes.
- Complain to Landlord: Most states require landlords to fix a significant health or safety violation within a certain amount of time, with a promise to follow up in the case that the landlord doesn’t comply. In that case, a tenant may be able to legally break their lease. Typically, the tenant is required to provide to their landlord – in writing – some form of a Notice of Intent to Vacate. Depending on state laws, a tenant has to wait a certain number of days after their notice to vacate has been received before they can move out, unless the violation is incredibly severe and detrimental to the residents’ health.
When complaining directly to your landlord, make sure you put it all in writing; You may need documentation/proof in the future if things end up in court.
Landlord Illegally Enters Property:
Landlords are generally required to provide tenants with at least 24 hours notice before they have the right to enter the property. Landlords can legally enter your property to:
- Make Repairs
- Inspect the Property
- To Show Property to Prospective Tenants
So what if they enter illegally?
If a landlord repeatedly attempts to or succeeds in entering a property without proper notice, tries to enter for reasons that aren’t legally allowed or harasses a tenant, the tenant may have legal grounds to break their lease. In order to do so, it is usually required that the tenant obtain a court order telling the landlord to stop; If the order is violated, then the tenant can give notice of their intent to terminate the lease.
Blog courtesy of Rent.com