Breaking a Lease or Rental Agreement as a Tenant
Are you looking to break a lease on your current living situation? When you decide to breach any contract, there is always a list of terms and conditions you must abide by that is stated in the agreement. Your lease is a binding contract you have signed between you and the landlord of a property. There are several reasons you may need to break your lease, and there are several steps of action that you can take to make sure you are covered.
Before breaking your lease, make sure you read the agreement you signed with your landlord. Breaking a lease before the end of the contract usually has costs, and understanding what you are responsible for is essential.
Conditions on Breaking Your Agreement
Unavoidable circumstances may allow you to break your lease without incurring a penalty. Below are a few situations that will enable you to break your lease:
- Your home is unsafe – In most cases, if your household has been broken into or there has been illegal activity, most landlords will allow you to break your lease, deeming it an unsafe place to live.
- Damaged Home – If your landlord fails to repair or maintain your apartment, causing your home to be “unlivable.” Damage to your home may not be at your fault but through natural causes. Some agreements specify an allotted window for landlords to repair your home before you can cancel the deal. Examples of damaged houses are those with water leaks and mould, which are considered inhabitable.
- Called to Active Duty – If you are active in the military. You have to be relocated. By law, you are allowed to break your lease without penalty under the federal Soldiers’ and Sailors’ Civil Relief Act in the USA or the Canadian Forces Members and Families Deployed Support Interim Orders in Canada.
- Serious health reasons – Some states and provinces will allow you to leave your lease if you have become ill and need to leave the apartment. Review your lease agreement and check with state laws for more information.
Subletting Your Apartment or Office
Before incurring any cost of breaking your lease, try contacting family and friends to see if they or someone they know may be looking to move. If you cannot find someone, placing an ad in the classifieds will help. Depending on the terms of the agreement, most leases allow you to sublet your space with permission from the landlord. First things first, check your lease agreement.
Inform Your Landlord
Inform your landlord that you plan on moving out as soon as possible. Most landlords request a 60-90 day written notice that you will not renew your lease. Make sure to have your landlord sign the termination notice for your records. Explain that you will vacate the property on this date and would like to perform a walkthrough to finalize the process. Make sure to take pictures of each room for your records.
Although you might have given advanced notice, it doesn’t exempt you from penalties against your contract. In most cases, this gives the landlord enough time to find another tenant as soon as you are moved out. Most states require landlords to make a reasonable attempt to re-rent your apartment given proper notice, better known as “Mitigating damages.”
Facing Penalty
If you decide to break your lease, understand there could be a penalty. The chance of you getting out of a lease without penalty is slim, but it is also essential to know that you want to at least limit how much you end up paying. Whatever the terms of an agreement are for your lease, be prepared to face penalty charges or, even worse, be taken to court. Some lease agreements require you to pay a penalty fee, the remaining month’s rent at market price value, and the possibility of losing your security deposit.
Whether you have a valid reason for breaking your lease or not, taking the proper steps can save you time, money and headaches. Before you pack up and leave, understand your agreement and the consequences of breaking the lease if necessary.
Breaking Your Lease or Rental Agreement as a Landlord
One of the most common reasons tenants face lease termination is due to a renter not paying rent consistently. While open communication and payment plans can sometimes resolve the issue, landlords may need to take legal action if the problem persists. Understanding your rights and the proper procedures can help ensure a smoother resolution for both parties.
In general, the rules will protect the tenant. However, based on solid grounds and providing adequate notice, it is quite easy to break your tenancy agreement as a landlord.
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