How to Break Your Lease and 4 Reasons Why You Shouldn’t

If you’re frustrated with your rental or have found a new one to move into, you might be wondering, “Should I break my lease?” or “What happens if I break my lease?” You’re not alone.

There are many reasons someone would want to end a lease early. A big one is the housing market, which has changed drastically in the past few years. Rent prices are soaring all over the country, with the average rent in New York City, for example, reaching a whopping $3,760 this April.

If you’re always looking for ways to save money on your move, you might be itching to downsize or relocate to a place that better fits your budget sooner rather than later. Is breaking your lease bad, though?

Breaking a lease can be risky, but it’s not impossible. Let’s look at how to end your lease early and a few reasons why you might want to wait and move out when your lease is up.

• Tips for ending your lease early
• Legal protections for early termination
• Why you should avoid breaking your lease
• The takeaway
• FAQ

Is it bad to break your lease early? Not exactly, but it can be tough and costly. If you absolutely want to move before your lease term is up, you can do a few things to make the process smoother.

Before you pack any boxes, look over the lease you signed when you initially moved into your rental unit. The early termination clause should explain your options. Many property management companies will allow you to break a lease as long as you pay penalty fees and forgo your security deposit.

Other rental agreements might specify an option to break a lease without penalty if you give advance notice and find a replacement tenant.

How bad is it to break a lease? It largely depends on your rental contract and relationship with your landlord. You’re much more likely to get out of a lease scot-free if you’re on good terms with your landlord or property manager. Try talking to them about your situation and see if you can come to an agreement.

Finding a new tenant to replace you is a great way to increase your chances of ending a lease early. Weed out prospective tenants who seem unreliable and try to find someone likely to pass credit and background checks to get approved.

Subletting, or letting someone take over your lease payments without legally binding their name to the contract, may be another viable option. But keep in mind that your landlord may hold you responsible for unpaid rent.

Sometimes, early lease termination is emergent and protected by the law. Landlord-tenant law varies from state to state, but here are some of the most common reasons you may be able to break a lease without penalty:

Active duty military personnel are protected under a federal law called the Servicemembers Civil Relief Act (SCRA). To break a lease, all you need to do is show your landlord your new orders and give written notice as soon as you’re made aware of relocation.

Defining landlord harassment depends on the wording of your lease and state laws. If your landlord displays any of the following, you may be able to break your lease without penalty:

• Entering the premises without notice
• Cutting off the use of amenities previously given
• Changing locks without notice
• Arguing with guests and being hostile
• Other aggressive behavior that might encourage a resident to break their lease

Most states have provisions in place to protect victims of domestic violence. If you are experiencing abuse or stalking, you may need to provide your property owner or landlord with a police report depicting the domestic violence to break your lease.

Your dwelling must meet specific codes and remain in compliance to be considered habitable. Things like running water, sanitation, access to cooking appliances, and overall safety are non-negotiable. If your landlord can’t fix problems like these, you can break your lease. This is called a “constructive eviction” and leaves the landlord at fault.

According to the National Oceanic and Atmospheric Administration, natural disasters cost the US billions of dollars and impact housing for thousands of people each year. You can terminate your lease without penalty if your home is damaged or destroyed in a weather emergency.

Sometimes breaking a lease is more trouble than it’s worth. From expensive fees to legal hiccups, it might be best to put off your move if possible.

Breaking a lease can get expensive. An early termination fee can cost up to three months’ rent, so if your lease is ending soon, you might as well stick it out. You’ll also lose your security deposit and have to pay the fees required at your new apartment.

If your lease agreement does not allow for early termination and you break your lease anyway, your landlord can take legal action and sue you for lost rent. If this is the case, you will need to defend yourself in small claims court.

Note: This legal action is considered a civil judgment and will be visible to future lenders on your public record.

While civil judgments no longer appear on your credit report, debt collections do. If your landlord uses a collection agency to collect your remaining rent, your credit score could take a significant hit. Collection accounts appear on your credit report and remain there for seven years.

The grass may seem greener in a cheaper apartment, but access to affordable housing has been declining at the “fastest rate on record.” Hunting for a new place could take months, and some property management websites will ask for details on why you broke your previous lease in the new tenant application.

Breaking a lease can be a complicated process that involves hefty fees, the potential loss of your security deposit, and possibly even legal action. If you can avoid it, we recommend waiting until your lease is up and moving with a reliable moving company.

Now that you know the ways to break a lease and what can happen when you end a lease early, you can focus on your move. Here are some guides to help you get started:

• The Only Moving Checklist You’ll Ever Need
• Should I Move Myself or Hire a Mover?
• Best Long-Distance Moving Companies
• Best Moving Container and Storage Companies

• How Do Moving Companies Charge?
• Should I Sell My Car or Ship It?
• How Much Does It Cost to Move?
• How to Pay for Your Move