How Much Does It Cost to Break a Lease?

Looking to break your rental lease? While renting a home certainly comes with plenty of advantages, moving out whenever you wish isn’t one of them. Most (if not all) leases require that tenants give their landlord at least one month’s notice that they are leaving the rental. If the tenant plans to break the lease before their term is up, they may have to negotiate special terms with the landlord in order to avoid paying high fees. The cost to break a lease will largely depend on the tenant’s circumstances and the landlord’s leniency.

Of course, many landlords are reasonable and understand that sometimes tenants need to relocate due to extenuating circumstances. Perhaps the tenant purchased a home or got a new job in new city. If the reason for leaving abruptly is legitimate, the landlord may be more willing to negotiate an exit strategy with the tenant. However, not all landlords are sympathetic and willing to release a tenant from the financial obligations of a signed lease agreement. After all, the tenant signed a legal contract agreeing to pay a certain number of rental payments for a certain amount of time. For more information about breaking a lease, keep reading.

How much does it cost to break a lease?

Rules surrounding breaking a lease vary from lease to lease and rental laws vary by state, so be sure to read over your specific lease agreement for terms and conditions regarding your leaving. In many cases, the lease may give the tenant the option to pay an “early termination fee.” If this is the case, tenants can expect to pay one to two months’ rent in order to exit the lease agreement.

Regardless of whether a tenant is given an early termination fee, almost all leases state that a tenant must give the landlord at least 30 day’s notice when moving out. If the tenant fails to give the landlord proper notice, they may be required to pay for the remaining months’ rent – assuming the landlord can’t find a replacement. If the tenant or landlord are able to find a suitable and qualified replacement tenant, then the tenant who is breaking the lease will no longer be required to pay for the remaining months’ rent.

However, there is one caveat. According to U.S. News, “if the landlord has to re-rent the unit at a lower price, you may have to pay the difference.” In other words, if the original tenant’s rental rate was $1,000 a month, but the landlord was only able to find a new tenant willing to pay $900 a month, then the original tenant would have to pay the landlord the difference in price of $100 a month.

Ways to break a lease

Several ways to break a lease and possibly avoid paying high fees include:

Finding a permanent replacement

Subletting the unit

Negotiating with your landlord

Good reasons for breaking your lease

Of course, there are plenty of good reasons for breaking a lease. Several reasons that should legally get you off the hook for having to pay rent include:

• The property is no longer a safe and healthy place to live.
• Your landlord fails to keep the unit in working condition and refuses to fix necessary items such as broken plumbing or electrical.
• You’re experiencing a hardship, job loss or job transfer, and your lease includes an early termination clause.
• You must move due to military orders.

Moving soon?

Whether you’re breaking a lease and moving out or replacing a tenant and moving in, you’re going to need all the moving help you can get. Fortunately, Moving.com is here to help with all of your moving needs. Our extensive network of reputable and reliable movers makes it easy to book the best moving company for the job. All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands. For customizable moving checklists, personal tasks list, helpful recommendations, email reminders and coupons to get you organized prior to moving, check our helpful Move Planner tool as well. Best of luck and happy moving!