Apartment Resources
How to Break a Lease
A lease is a contract between tenant and landlord, in which the tenant is legally bound to pay rent for a certain term. You may need to break your lease because of reasons like needing to relocate to another city, getting married, graduating from college, or because your apartment is in bad condition. But keep in mind that breaking this contract may result in a penalty, such as payment of rent for the rest of the term. If you simply move out and ignore your lease, however, your landlord may recover damages and unpaid rent by filing a lawsuit against you. The best thing you can do is know how the law protects you as a tenant and ways you can mitigate the penalty.
Subletting or Assigning the Lease
In order to avoid paying this penalty, you may try to find other tenants to take over your lease. Read your lease carefully
and look for mention of “sublease” or “assignment” and obtain consent of your landlord in writing. If you “sublet” your
apartment, the new tenant pays you for rent and you are still under contract with the landlord. If you “assign” the lease to
another person, he or she takes over your lease and is liable to the landlord. It is essentially a new lease with a new party.
Exempt Situations
There are some situations where you may not have to pay a penalty. Federal law allows you to break your lease without a penalty
if you are called to active military duty. Some state and local laws have provisions for those who need to move for medical
treatment.
Uninhabitable Conditions
If the apartment is damaged to the extent that it is uninhabitable, through no fault of the tenant (such as through natural
disaster), you can break your lease without penalty. Depending on the state, other factors of habitability include safe electrical
wiring, hot water, functional locks, and more. If your apartment’s condition violates the law, then you can give written notice to
the landlord and move out immediately. It’s best to check with your local housing authority or legal aid agency to make sure you
have sufficient cause to vacate.
Try to Negotiate
You can try to negotiate with your landlord to void your lease if you must move out and do not have a legal excuse to avoid penalty.
Give your landlord as much notice in advance as possible and help find replacement tenants. If your landlord cannot find a new tenant
and loses rent during the rest of your lease term, you may have to pay that rent. However, most state laws require landlords to
mitigate damages, so the landlord must make reasonable attempts to find replacement tenants.
What are the consequences of breaking your lease?
Breaking a lease is a BIG deal, you should not consider breaking your lease unless you are in a dire situation. It can potentially make
it very difficult for you to find another landlord willing to enter into a lease agreement with you in the future. Furthermore, it may
negatively affect your credit score. If you break your apartment lease, your landlord is able to report you to the credit bureaus because
you are essentially breaching a legally binding contract. If the landlord turns your account over to a collection agency,
credit-reporting agencies will be notified. A landlord can also take you to court and get a civil judgment against you, which also
stains your credit report for about seven years.
Other Articles
- How to Rent a Moving Truck
- Adding a Roommate to a Rental Agreement
- Insurance - Renters Insurance
- Lease - Breaking a Lease
- Lease - Overview of Lease Agreements
- Lease - Evictions
- Fair Housing Act
- Security Deposits
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