What is a Broken Lease?
A lease agreement is a contract between a tenant and a landlord that outlines the terms and conditions for renting a property. A broken lease is when the tenant ends the agreement before the end of the lease term without following the right procedures that are listed in the lease.
It’s important for renters (and tenants) to understand what a broken lease is and the lasting consequences. We’ve worked with hundreds of renters and tenants who have had to navigate the aftermath of a broken lease. We’ll share some of the reasons people break leases, the consequences of breaking a lease, and how we can help!
Reasons for Breaking a Lease
Breaking a lease can happen for various reasons, and while some may be unavoidable, you should know the consequences beforehand. Usually someone breaks a lease for one of two reasons, either they have a personal issue to take care of or there are external factors forcing them to break the lease.
Loss of income is the main reason most people find it necessary to break their lease. This can occur when employment hours are cut, layoffs or complete job loss. Roommates often break up. The loss of a roommate’s income often makes it impossible for the residents to afford to maintain the lease.
Personal reasons can include a job relocation, which is one of the most common reasons for breaking a lease. When an individual is offered a new job in a different city or state, they may have no choice but to move. If you’re in this situation, you should check your lease agreement to see if there’s an early termination clause or negotiate with your landlord.
Family emergencies or changes, such as needing to move closer to a sick relative or a divorce, can be a reason for breaking a lease. These situations often require immediate action, leaving renters with little choice but to terminate their lease before they would like.
Another personal reason for breaking a lease is health issues. This might mean moving to an area that is better for your health (perhaps somewhere warmer), or maybe closer to a medical facility. This can be a valid reason for breaking a lease, but you’ll want to communicate with your landlord to see if you can come to an agreement.
But as we said, there’s also external reasons why a renter might need to break a lease. If the rental property becomes unsafe or uninhabitable due to issues like structural damage, mold, or pest infestations, tenants may have legal grounds to break their lease. If you’re in this position, you’ll want to make sure that you document the conditions and notify the landlord in writing. Write it down and send it by mail so that it’s postmarked. This will give them an opportunity to address the problem.
Other external reasons to break a lease could result from a landlord violating their end of the deal. Landlords have a legal obligation to maintain the property and adhere to the terms of the lease agreement. If the landlord fails to make necessary repairs, violates privacy rights, or otherwise breaches the lease, tenants may be justified in breaking the lease without penalty.
Events such as hurricanes, floods, or earthquakes can render a rental property uninhabitable. In these cases, tenants may need to break their lease to find safer housing. Tenants should consult their lease agreement and local laws regarding tenant rights in such situations.
Legal and Financial Consequences of Breaking a Lease
Breaking a lease can have significant legal and financial repercussions, depending on the reasons for breaking the lease. The consequences might differ depending on the state you live in, but generally there’s three major repercussions for breaking a lease.
1) Impact on Credit Score
When a lease is broken, the landlord may report the unpaid rent and any associated fees to credit bureaus. This can negatively impact the tenant’s credit score, making it more challenging to secure future housing or obtain loans and credit cards. Maintaining a good credit score is crucial for financial stability, so tenants should carefully consider the impact of breaking a lease.
2) Potential Legal Actions
If a tenant breaks their lease without the landlord’s consent, the landlord may initiate eviction proceedings. An eviction can be a lengthy and stressful process, involving court appearances and legal fees. An eviction on a tenant’s record can also make it difficult to rent in the future.
If the landlord wins an eviction case or sues for unpaid rent and damages, the court may issue a judgment against the tenant. This judgment can lead to wage garnishment or bank account levies, further complicating the tenant’s financial situation.
3) Financial Obligations
Most lease agreements require tenants to pay rent for the entire lease term. If a tenant breaks the lease, they may still be responsible for the remaining rent payments until the landlord finds a new tenant. This can result in significant financial strain.
Lease agreements often include clauses outlining penalties for early termination. These may include additional fees, forfeiture of the security deposit, or other financial penalties. Tenants should review their lease agreement carefully to understand these potential costs.
Communicating with the Landlord
Open communication with the landlord is important when considering breaking a lease. Many issues can be resolved through negotiation and mutual agreement. Before you break your lease, we can’t stress enough that you should talk with your landlord.
A renter should inform their landlord as soon as they know they may need to break their lease. Early communication can help both parties find a solution and minimize misunderstandings or conflicts.
Some lease agreements include an early termination clause that outlines the conditions under which a tenant can break the lease without penalty. Read through your lease for this clause and try to negotiate with the landlord if it is not included.
Subletting the apartment can also be a viable solution for tenants who need to move out early. If allowed by the lease, tenants can find a subtenant to take over the remaining lease term. This arrangement can help tenants fulfill their financial obligations while avoiding penalties.
If you are planning to break a lease…
Most lease agreements require tenants to provide written notice of their intent to terminate the lease. The notice should include the reason for breaking the lease and the proposed move-out date.
Finding an Apartment after Breaking A Lease
Breaking a lease can have lasting effects on your ability to rent in the future, but we specialize in helping you find a second chance apartment.
Many landlords conduct background checks on prospective tenants, including rental history. A broken lease can make it challenging to secure future housing, as landlords may view it as a red flag. Here’s how we can help:
Connecting You with Second Chance Landlords
We work with landlords who are open to giving tenants a second chance, even if they have a broken lease in their history. We’ve helped hundreds of individuals who have broken a lease find a place to live across the United States. We can help you too.
Finding Suitable Properties
Our goal is to help you find apartments or rental homes where your background will not be a barrier to securing a lease. Fill out our contact form with your information, and we’ll reach out to you to find an apartment that fits your needs.
We make it easier for you to find a new place to call home, despite the challenges of a broken lease. Let us help you connect with landlords who are willing to offer you a fresh start.
Breaking a lease is a significant decision that can have legal and financial consequences. Understanding the reasons for breaking a lease, the potential impact, and the available alternatives can help tenants make informed choices. Open communication with the landlord and seeking professional advice are important. By taking these steps, you can minimize the negative effects of breaking a lease and find solutions that work for both parties.