Breaking A Lease Guide
You and your tenant sign a lease, agreeing to follow all rental agreement terms. However, sometimes a tenant's circumstances may change throughout the duration of the lease. For example, this year, more renters may consider moving to another location due to unexpected job losses or remote work opportunities.
It is important to fully understand the lease and the reasons behind why the tenant broke it. Given the challenges of this year, it is important to approach the situation with flexibility and compassion.
Here are some steps to help you handle a situation in which a tenant has broken a lease:
Understand your rights as a landlord: If a tenant breaks a lease prematurely, you may find yourself in a difficult position. However, you can always seek legal guidance. Local lawyers are familiar with landlord laws in your area and can help you determine the best course of action. Make sure you and your tenant carefully read the entire lease agreement and comply with local laws.
Discuss the lease with your tenant: Before allowing tenants to sign a lease agreement, make sure they are aware of the legal consequences. While most tenants are aware that they are responsible for the entire lease term, some may assume there is flexibility. In most cases, there are no valid reasons for ending a lease early.
Learn the reasons behind the lease termination: This year has brought many unexpected changes, including job losses, illness, and financial difficulties due to COVID-19. When approached with flexibility and understanding, these challenges can help you make informed decisions about a lease termination.
Consider allowing early termination in certain circumstances: Some landlords allow tenants to end their leases without penalty in certain situations. These circumstances can help you decide what to do if your tenant requests to end their lease early. You may also be required to end a lease for legal reasons in certain areas.
Breaking a lease to serve military duty: Under the Servicemembers Civil Relief Act, a military service member may be permitted to end a lease if they are given orders to move or deploy. Service members are typically required to give the landlord 30 days' notice in writing, along with a copy of their military orders. Different states and cities have various regulations for military service members, so consult a local lawyer if you have any questions about the laws in your region.
Unlivable conditions leading to lease termination: If you fail to make necessary repairs or provide a safe, livable property for your tenant, there may be grounds for them to terminate their lease. Check the laws in your area and speak with an attorney. In some cases, you may also be responsible for the tenant's moving expenses.
Domestic violence leading to lease termination: Some states allow domestic violence victims to end a lease without penalty by giving notice to the landlord. If you would like to learn more about the rights of domestic violence victims, check the laws of your state and localities.
Breaking a month-to-month lease: Local law will govern the notice required by tenants if they have a month-to-month or at-will tenancy. To learn more about month-to-month leases in your area, consult a local lawyer.
Loss of wages can lead to the termination of a lease in certain jurisdictions. In these cases, landlords may be required, based on state and local laws, to work with tenants to make accommodations such as a payment plan.
It is important to include terms for ending a lease in the agreement. An early termination clause, which explains what happens if the tenant ends the lease before the due date, can be included or excluded at the landlord's discretion. If not included, the consequences of breaking a lease should be clearly outlined, such as allowing the tenant to search for a subletter, withholding the security deposit, and requiring payment of the rent balance for the remaining months.
A subleasing clause, which requires written permission from the landlord before the tenant can transfer the property to another person, can also be included. This can be a beneficial solution for allowing the tenant to leave early while still ensuring the property has reliable renters.
Breaking a lease can come with financial consequences, as specified in the lease agreement and according to local laws and regulations. This may include a minimum of one month's rent to end the lease and, in some cases, the remainder of the rent for the remaining months or until the property is re-rented. It is important to fully understand any lease agreement you sign and to consult a local attorney if you have questions.
If a tenant has good cause for ending a lease early, they should submit a written request for termination. The rental agreement should outline the steps for ending the lease as soon as possible. Landlords should consult a local lawyer to familiarize themselves with local lease requirements and landlord/tenant laws, as well as to be prepared in the event that a tenant violates a lease.
