As a landlord, you likely receive many applications from people interested in renting from you. A lease is a long-term commitment between landlords and renters. This legal contract binds a landlord and renter to specific terms, including a move-in and move-out date and rent payment.
But while they may initially intend to stay for the entire duration of their lease, renters may need to terminate a lease early. This termination can result from personal issues, such as illnesses and financial hardships, or other situations, such as military deployment, whereby the landlord would be legally required to honor a tenant who terminates a lease early.
If such a scenario arises, you can take actions to minimize the losses that come with an empty rental property with a tenant breaking a lease. Also, since each situation is unique, it is essential to know how to handle a renter breaking a lease.
What valid reasons can prompt a renter to terminate a lease early?
Can a tenant break a lease? Several circumstances can lead to a renter breaking a lease. Some of them are legally accepted reasons that don’t result in penalties, and most jurisdictions widely accept them. They include:
A Renter Leaves for Military Duty
If a renter must answer an active duty military call, the individual can break a residential lease under the protection of The Servicemembers Civil Relief Act. The officers under such federal protection include armed forces personnel and those serving in the National Guard.
The renter should give a written notice 30 days before the intended day of breaking the lease. This notice typically includes a copy of the military orders.
A Renter Protests Unsafe Living Conditions
It’s the landlord’s responsibility to provide habitable living conditions, including maintenance and repairs in their rental properties. If the landlord cannot provide these conditions, a renter can break the lease under a constructive eviction clause.
Usually, the renter needs to notify the landlord about the required repairs, giving the landlord at least seven days to rectify the situation. If the landlord does not resolve the matter, a renter can legally break the lease.
A Renter Reports a Privacy Violation
Suppose a landlord harasses a renter by shutting off utilities, changing locks without permission, or removing doors due to a dispute. In these cases, a renter can terminate a lease based on privacy violations.
The Landlord and Renter Mutually End the Lease
A renter can terminate a lease by following specific protocols. A large part involves talking with the landlord. The renter and the landlord would mutually agree to end the lease with minimal or no costs attached. Both parties should sign a written document stating the terms of ending the lease.
A Jurisdiction May Offer Other Valid Reasons
What happens if a renter breaks a lease due to other valid reasons? The reasons for a renter breaking a lease include health matters, job change, domestic abuse, and illegal clauses in the lease agreement. Verifying your local laws or consulting an attorney can help you identify whether your renter can legally break the lease in these cases.
What are landlord rights when a tenant breaks a lease?
What happens when a renter breaks a lease? Does the landlord have any rights to recoup income? A landlord can take the following steps:
Terminate the Lease
A landlord can agree to break the lease, repossess the rental property for future leasing, and absolve the renter of rent obligations.
Work with the Existing Renter to Find Another Renter
The renter can agree with the landlord to cover certain costs of finding another renter, such as advertising or introducing new prospects to the property.
Sublease the Rental Property
A landlord may allow the renter to find a replacement renter who will fulfill the remaining part of the lease. However, the individual must still undergo thorough screening according to the landlord’s requirements.
Charge the Renter
In some cases, especially if a clause in the rental agreement suggests it, a landlord can charge at least a month’s rent to full lease rent payment despite agreeing to break the lease. Some landlords may charge an early termination fee or keep the renter’s forfeited security deposit.
What is the landlord recourse when a tenant breaks a lease?
If a renter breaks a lease with no justifiable reason, a landlord has the right to consult a legal advisor. An attorney can help the landlord to pursue damages or acquire permission to initiate the eviction process. Suppose an attorney can prove that the renter is breaking a lease without prior written notice or a justifiable reason. In that case, a landlord may collect payment from a tenant.
If a renter has broken the lease by abandonment, the landlord can repossess the rental property to mitigate charges.
What can a landlord do to avoid renters breaking a lease?
A renter can break a lease for many reasons, but a landlord can avoid unexpected and unfounded reasons if you know what to do when a tenant breaks a lease.
Create an Early Breaking-of-Lease Clause
Although it is not required legally, an early breaking-of-lease clause can provide a renter with information about breaking a lease and the charges that may accrue. Such a clause can also help avoid potential renter scams.
Promote Open Communication
Open communication plays a crucial role in building great landlord-renter relationships. Through open communication, a renter can voice any concerns about the rental property’s condition or personal circumstances affecting the nature of the property lease.
If a renter breaks a lease due to legal or justifiable reasons, such as active military duty, the landlord can release a renter from the lease requirements. However, if a renter breaks the lease without any plausible reason, the landlord can sue for rent owed or for breach of contract.
As a landlord, you must still respect some renter rights. You should try to work out a solution with the renter first before taking the matter to court. Having open conversations with renters can better foster dialogue between you and your renter so that you’re not surprised by what happens if a tenant breaks a lease.
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