What to Know When Breaking a Lease Early
When landlords and tenants sign a lease, each party expects the other to follow the agreed upon terms—but what if something major comes up that requires one of you to break the lease? Can you get out of a lease early, or are you stuck with the agreement for the rest of the original lease term?
The rules surrounding what happens if you break a lease can vary, but we’re here to give you the rundown on everything you, as either a landlord or tenant, need to know about breaking a lease early. Read on to learn the ins and outs of what landlords and tenants can and cannot do when breaking leases and what the process might look like for you.
Can Landlords Break a Lease Early?
Most landlords usually don’t want to break leases because their income depends on tenants living in their units, but there are several reasons a landlord may want to (and may be allowed to) break a lease early. Let’s look at a few of these reasons.
Reasons to Break a Lease Early
1. Rent Nonpayment or Lease Violations
Sometimes, circumstances arise that prevent a tenant from paying their rent on time. If your tenant has a good track record for rent payments, one late payment is likely not reason for concern, but if a tenant stops paying rent altogether, it becomes a lease violation that can lead to the termination of the lease. Other lease violations can be grounds for an eviction as well, including scenarios such as hiding pets and roommates, causing extensive damage to the property, or consistently disrupting other tenants.
A lease agreement should outline the payment expected for the space you’re providing as well as the basic care you require of tenants for the property. If a tenant is consistently violating these terms, it is grounds for an eviction, and landlords reserve the right to break the lease via the proper legal processes.
2. Ending Lease Before it Begins
Occasionally, a landlord may find themselves in a situation in which they need to end a lease before it even begins. This includes wanting to sell the property (more on this later), deciding to live in it longer than originally planned, or needing extra time to complete renovations or repairs.
In this case, leases can be broken, but only if the tenant signs a written agreement consenting to the change. If a tenant refuses to sign, the lease must move forward as planned because it is a legally binding document.
3. Sale of Property
Sometimes, a landlord may want to break a lease in order to sell the property to someone else. Though this can mean an early end to the lease (like if a new buyer wants to move their family into the unit), you have other options at your disposal.
Some landlords add a clause to their lease agreements which allows either party to terminate the lease for any reason with reasonable notice, which is typically 30 to 60 days. You could also transfer your pre-existing leases to the new homeowner if they are also an investor. No matter what options you consider, always be sure to communicate your intentions to your tenants so they can prepare for new housing or a new landlord.
4. Extensive Renovations, Repairs, or Other Improvements
Can you break a lease for renovations or property improvements? Yes, especially when those renovations are hands on, long term, and require full access to a property. Renovations can often go awry, leading to longer improvement timelines that may cause conflict with a lease’s start date.
As a landlord, you’re held to an implied warranty of habitability that requires you to maintain a livable space for your tenants. If you’re knocking down walls, replacing piping, or doing other involved work on your property that would be uninhabitable for your renters, it’s best to make them aware of the situation with as much notice as possible so they can begin searching for new housing.
It's also important to note that not complying with the warranty of habitability for your tenants (either by needing the unit for long-term renovations or by refusing to provide maintenance) can come with consequences in some states, which could range from being required to forgive rent payments to even being obligated to pay for/assist in finding alternative housing for your tenants in states like California.
It’s paramount to fully understand your state and locality’s laws on the rights of tenants like these, which we’ll talk about next.
Tenant Rights When You Break a Lease
Before you break a lease, it’s vital to review both federal and local landlord-tenant laws. Tenants still have rights in the case of early lease termination, and can often object or contest to it in cases like these:
- Insufficient or incorrect notice
- Harassment or discrimination
- Failing to keep the property habitable and safe
- Insufficient time to fix the issue
- Handling improperly or damaging their personal property
If you don’t comply with state and local laws, your tenants could potentially sue you for damages, partial rent payments, their security deposit, or even the right to stay on the property for the full, original term of the lease. Always be sure to communicate with your tenants and keep records of important rental conversations so you can stay organized and have documentation if a tenancy situation is brought to court for any reason.
The Lease Breaking Process for Landlords
Breaking a lease isn’t a one-size-fits-all scenario—it can vary at both the state and local levels. Because of this, landlords should be sure to understand both the specific circumstances in which a landlord can terminate a lease early as well as the process of early termination before making any decisions.
For example, in the state of Ohio, if a landlord ends a lease with cause (for a lease violation, such as failure to pay rent), they must provide written notice of the lease’s end and reasoning for termination and follow state regulations for time required for pay or quit notices. Then, the landlord must deliver the notice to the tenant.
If a landlord is ending a lease without cause in Ohio, the process is similar, but does not include a pay or quit notice, and the proper the amount of advanced notice required depends on the type of tenancy: Week-to-week requires seven days, while month-to-month requires 30 days. A landlord may deliver this to the tenant through the preferred delivery method outlined in the lease.
Can Tenants Break a Lease Early?
It’s not just landlords who may be wondering how to get out of a 1 year lease early—tenants sometimes want to break leases, too. While some reasons, such as getting a new job or moving closer to family, may come with penalties, there are several reasons to break a lease that tenants may be able to take advantage of in their state.
Reasons to Break a Lease Early
1. Military Duty
If a tenant decides to join the military, they are legally protected in ending their lease early under the Servicemembers Civil Release Act (SCRA). This includes tenants joining the military after signing a lease, tenants who are being moved to a different station, or tenants who will be deployed for 90 days or more.
You’ll be required to give your landlord military orders as well as written documentation of your intent to end the lease, all with 30 days’ notice.
2. Domestic Violence
In many states, if a person is experiencing domestic violence, they may be able to end their lease early without penalty. Each state has different requirements for this process, with different amounts of notice needed and varying documentation requirements, so be sure to check the laws for your state before deciding to break a lease.
For example, Virginia recently passed a law allowing victims of sexual abuse or criminal sexual assault to terminate a lease early, so long as they provide proof through documentation like a protective order or conviction order as well as offer their landlord 30 days’ written notice.
Even if your state does not have domestic violence protections, consider negotiating with your landlord or seeking legal guidance if you’re in an unsafe living situation.
3. Unlivable Conditions
As a tenant, your landlord’s duty is to provide you with safe, habitable living conditions. These usually include (but can vary by state or locality): Running water, electricity, structural integrity, pest treatment, heating, etc. If your landlord fails to repair these issues after they’ve been made aware of them and have had time to complete maintenance, you may be able to break your lease without penalty.
4. Month-to-Month Lease
Unlike many longer types of leases, month-to-month leases can be ended by either the landlord or tenant without cause. Depending on your state, you may be required to give more or less notice (North Carolina requires 7 days while Delaware requires 60) before moving out of the unit, but typical notice is usually considered to be 30 days.
Landlord Rights When You Break a Lease
Just as you have rights when your landlord ends a lease, the opposite is true, too. Since a lease is a legally binding contract, breaking it can come with consequences, often financial. Many landlords include an “early termination” clause in their lease that outlines the consequences and required fees if a tenant breaks the lease early and moves out, usually totaling to one- or two-months’ future rent that you’ll be legally responsible to pay.
Depending on your situation, your landlord may be willing to negotiate or come to a mutual agreement about the terms of the lease break, especially if you’ve kept a good relationship with them in the time you’ve been living there. However, landlords aren’t legally required to let you out of your lease if you terminate it early—you may still be charged the agreed-upon fees or even be held responsible for the remaining rent, and you could risk legal action if you fail to pay.
The Lease Breaking Process for Tenants
In some situations, breaking your lease may not be a feasible option, but if you’ve looked over your lease agreement and state laws and are prepared to pay the consequences of terminating your lease early, you should write a “notice to vacate” letter that informs your landlord of your intent to move out and your reason for doing so. This should be done in accordance with any required notice outlined in the lease (usually 30, 60, or 90 days, but it’s best to let your landlord know as soon as you decide to leave so they have time to find a new tenant).
For the best outcome with your landlord, be as respectful as possible and consider offering to help find a replacement tenant so your landlord isn’t left with an empty unit.
Conclusion
No one wants to sign a lease and end up breaking it before the lease expires, but in certain circumstances when life gets in the way or things go wrong, it’s sometimes necessary. With this information, you’ll be prepared in case you or the other party ever needs to break a lease, leaving less hassle and a smoother process for everyone.
