The decision to break a lease is — you hope — not one your tenant has taken likely. But even if you’re sympathetic to your renter’s situation, a broken lease is a frustrating inconvenience. As a landlord, you need to understand your legal obligations and your tenant’s — and how to deal with the unexpected vacancy. Here are a few steps to help you deal with a broken lease:- Go over your lease agreement in detail at signing so the tenant understands that it is legally binding.
- Know the circumstances for when it is legal for a tenant to break a lease, like military duty.
- Require notice in writing.
- Hold the tenant responsible for paying rent while the property is vacant, but try to fill it as soon as possible.
- When in doubt, seek professional legal advice.
Tip: Zillow Rental Manager offers state-specific customizable online lease agreements for free. Currently available in Oregon and coming soon to select locations.
Be proactive
Ensure your new tenants know that a lease agreement is legally binding before they sign it. Many tenants are aware that they’re supposed to stay for the entire lease term, but some could assume there’s flexibility. Outline the course of action for breaking the lease in the lease agreement. This could include finding a subletter (if you allow it), forfeiting the security deposit or paying the rent balance for the remaining months.
Some leases include an early termination clause which lets the renter out of the lease, without penalty, under certain circumstances. You can decide whether to include such a clause — but if you don’t want to, and you are using a generic lease form, make sure it does not allow for early termination.
Understand when it’s legal to break a lease
There are circumstances under which a renter does have the legal right to terminate the lease without penalty. Knowing these circumstances, whether you can control them or not, can help you understand the correct course of action to take should your tenant ask to cut their lease short. Issues like loud neighbors, taking a job in another area, inconvenient parking or moving in with a significant other don’t require you to release a tenant from the lease. But other circumstances, such as poor living conditions, can justify breaking a lease without penalty. Check your local laws and consult a legal professional if necessary.
Legal circumstances that allow a tenant to break a lease include the following:
Breaking a lease for military duty
If your tenant is a military service member who receives orders to move or deploy for at least 90 days, the Service Members Civil Relief Act lets them legally break the lease. They just need to provide a 30-day written notice and a copy of their military orders (or a letter from a commanding officer). The lease legally ends 30 days after the next rent is due.
Relocating due to an employer-mandated job change might also be a valid reason for you to comply with the tenant’s request. Check your state laws for other specific exemptions.
Breaking a lease because of unlivable conditions
If you have neglected to make needed repairs or otherwise failed to provide a safe and livable property, your tenant has a good case for breaking their lease. Check local and state laws, which could require you to pay moving expenses.
Breaking a lease because of domestic violence
Some states allow domestic violence survivors to break a lease by providing a written notice, usually including a copy of an emergency protective order or other legal document. Check your local and state laws, especially since they may include other provisions for early lease termination.
If one of your tenants is threatened or assaulted with a weapon by a neighbor in the building, and the neighbor is placed under arrest for it, some states allow the tenant to break the lease without penalty.
Breaking a lease just because
It may come as a surprise, but it’s technically legal for a renter to break a lease for any reason. In many states, they just need to give at least 30 days’ notice.
This is where your lease agreement comes into play. It should spell out the financial consequences for the renter leaving early, as permitted by your local laws and regulations. At least one month’s rent is the typical minimum, and, in some cases, the tenant may be required to pay the remaining rent for the rest of the term.
So, if four months are left on the lease, this clause in the lease agreement says that the departing tenant must pay four months’ rent or for as long as the property remains vacant. But many jurisdictions require you to find a new tenant in a reasonable amount of time, rather than purposely leaving it open to collect rent from the vacating party. You also cannot penalize the renter by charging more than your actual damages.
Require your tenant to give notice in writing
Regardless of whether your tenant has a legal reason for breaking the lease, as soon as your tenant informs you of their need to break a lease ask them to provide a written request to terminate early, detailing their reason for leaving. Explain to your tenant the course of action for ending the lease early, as required by the law and your rental agreement.
Hold the tenant responsible — within reason
Just because the tenant is vacating the property doesn’t mean they aren’t responsible for the home. The lease is a legally enforceable document stating that the landlord has given up possession of the unit for a specified amount of time in return for rent.
The renter may want to find someone to finish out the lease as a sublet. There are pros and cons to subleasing, and many leases forbid it. For your protection, the lease should include a subletting clause that requires your written permission before a renter can hand over the place to someone else. Even if the leaseholder finds a subletter, they retain the responsibilities for damages and payments until the end of the lease. It’s also possible they’ll find a replacement renter for you to screen. If all goes well, you’ll sign a new lease with the new renter — a win-win all-around.
While the leaseholder has a legal responsibility, most states require landlords to make a reasonable effort to find a new tenant; purposefully leaving the unit vacant to collect rent from a tenant who’s broken their lease is not usually permitted.
Know your rights and responsibilities as a landlord
A tenant breaking a lease prematurely might put you in a tight spot, but you can always seek legal advice. Attorneys know the ins and outs of the landlord laws in your state and can help you determine the right course of action. Be sure you’ve read through your lease agreement carefully — ideally in person with the tenant. Landlords and tenants alike can miss details in the fine print, and it’s in your best interest to be fully informed about your lease as well as local statues.
In the end, your best defense is a good offense. Keep your rental units in good condition. Be cordial and reasonable. And whatever the landlord experience throws at you, attorneys in your area can help you navigate local laws and proactively make sure your lease terms protect you.
Learn more about landlord laws in your state.
Comments