Help! My Tenant Wants to Break Their Lease!

As a landlord, you’re no stranger to the unique challenges that your job offers. From budgeting to lease ups to maintenance emergencies, you likely know how to navigate through each situation while maintaining a positive relationship with your residents. But even with all that experience, you will still run into situations that leave you panicked, with one being a tenant wanting to break their lease early. It’s a stressful scenario that can leave you scrambling to find the best course of action, or even legal recourse. With the right course of action, you can maintain a positive relationship with your tenant while simultaneously protecting your property from rent loss.

Understanding the root cause for why your tenant wants to end their lease early will give you a better idea of the best response to their request, especially if your lease terms don’t include an early termination clause. Is the renter having roommate conflicts? Are they experiencing financial difficulties? Are they relocating due to work, or school? Each answer may change the course of action available to them.

For instance, if a tenant is having trouble keeping up with their rent or is currently in between jobs and has concerns about their ability to pay their rent in the future, you may consider offering a payment plan option or deferred payments. If they accept this offer and stay true to your agreement, then breaking the lease isn’t necessary. In another example, the tenant may be unhappy with their apartment and they are looking to move elsewhere. You can work with them to resolve their concerns, whether they be maintenance related, or they are experiencing conflict with a roommate or neighbor. Rather than ending their lease, they may instead need more support and guidance from you for a resolution. Some common reasons a tenant breaks their lease includes:

No matter what their reasoning is, it’s crucial you take the time to hear them out and carefully consider their situation. You may be able to avoid the broken lease altogether by offering different solutions.

If the resident is still adamant about breaking the lease, your next step should be to review what the rental agreement says. After all, a lease is a binding contract — so they can’t just move out without referring back to it and following its clauses. The terms of the lease should outline what options are available to tenants wanting an early lease termination. There may be a clause outlining protocol for certain scenarios, such as military service (which, due to the Servicemembers Civil Relief Act, excludes renters from needing to pay any breaking lease fees) but if that’s not the case for your tenant, you will want to see what your lease says about subleasing, if any penalty fees apply, and what the steps are for both you and the tenant. Some landlords may include a lease term that prohibit subleasing, while others encourage the renter to find a new tenant. Some may charge a lease-break fee of several months rent, or require tenants to be on the hook for the remainder of the entire lease unless they find a new tenant to sublet or takeover the lease.

In any case, if your tenant wants to end their occupancy early, they need to give you a written notice (typically with 30 or 60 days’ notice). From there, if you allow subletting, they will then find an approved subletter to move into their rental for the remainder of their lease. If there are any termination fees associated with residents giving up their lease, then it should be stated in the lease or in any resident handbook you provide. Once you have a full understanding of the options available to your tenant outlined in the lease agreement, you can then communicate all of the details with them.

Just remember: Your lease must follow federal, state, and local landlord-tenant laws.

Not every tenant will agree with, or want to comply with, the steps you provide them when they wish to end their tenancy, especially if that consists of finding a new tenant to replace them in the rental property. Because of this, it’s crucial to understand the legal recourse available to you should a tenant decide to vacate without following the proper steps.

For example, if your tenant decides to vacate the rental unit while still legally responsible for the space and the remaining rent payments, you will need to seek legal advice about the options available to you. Typically, if someone were to stop paying their rent, you would begin the eviction process, but since they vacated the rental, you will want to seek counsel on what your options are to collect the money still owed to you. Oftentimes this can be rent acceleration (which is where you take the remaining monthly balances and charge them all at once), sending the tenant to collections, or even backfilling the space to mitigate loss.

However, it’s also important to keep in mind that the tenant may have a legal right to break their lease. In many states, tenants can break their lease without incurring penalties if: they are victims of domestic violence, they are victims of landlord harassment, they are called to military service, or the unit is deemed uninhabitable. Brush up on your state laws to be certain you understand all of the legal reasons a tenant may be breaking a lease.

If your tenant agrees to find a subletter, you can help guide them through that process by making reasonable efforts to offer support. Oftentimes your resident will not know how to advertise their apartment, and to lower the risk of them just skipping and you needing to backfill the space anyways, you may want to consider offering to advertise the rental for them. If they do find someone who is interested, offer to set up a tour, be clear about what your application process is and any fees associated, and help both parties make the transition as smooth as possible. The more support you can provide, the easier it will be for your tenant to follow the proper protocol.

If the tenant successfully finds someone to take over their lease, make sure to formalize the transfer in writing. This step protects both parties and ensures that all legal obligations are met.

As a property owner, navigating the complexities of a tenant wanting to break a lease can be challenging, but it also offers an opportunity to foster goodwill and strengthen your relationship with your tenant. By understanding their reasons, reviewing the lease agreement, maintaining open communication, and assessing their situation with compassion, you can find a resolution that works for both parties.

Remember to remain up to date on local laws to ensure you are acting within your rights and to consider potential replacement tenants if needed. Approaching the situation with empathy and professionalism can lead to a smoother process, protecting your interests while also respecting the challenges your tenant may be facing. With the right approach, you can turn a potentially contentious situation into an opportunity for collaboration and understanding.