Breaking a Rental Lease: Do's and Don'ts

Taking your landlord into consideration when terminating a rental lease early can help alleviate legal and financial troubles. Your reasons for breaking a lease doesn't matter. Leases are legal documents, and terminating the contract early justifies a civil suit. Landlords can file suit and go before a judge to obtain back rent payments. Some contracts have an early termination clause that ends the lease in the event of hardship. But even if your lease agreement doesn't have an early termination clause, you might win over your landlord and negotiate an early release without penalty.

Do's and Don'ts to Breaking a Rental Lease Early

• Discuss your situation with the landlord early. Don't wait until three days before your planned move to notify your landlord. Inconsiderate actions can infuriate your landlord, wherein he is less likely to negotiate.
• Be specific and don't hold back information. Your landlord wants details. Providing half-truths or leaving out pertinent information about your situation can ruin your chances of getting out of the lease without penalty. This isn't the time to feel embarrassed or ashamed. Did you lose your job? Are you going through a divorce? Are you ill? The more information you volunteer, the better your odds of getting out of the agreement.
• Propose a win-win solution. You want out of the lease and your landlord wants his rental income. Paying off the lease can satisfy you and your landlord, as does locating someone to take over your lease.

Even if you handle the situation with finesse and demonstrate your professionalism and willingness to help. Your landlord doesn't have to return your kindness and end the lease. He might require that you fulfill the contract and take legal action if you don't. A courtroom judge can then force you to pay the lease balance, and a judgment can appear on your credit report. Both consequences can delay any plans to buy a house, and might impact other rental options. To keep your credit in good shape and to keep your housing options wide open, it's best to stay in the unit until the end of your lease.

Steve McLinden, "How to Break a Lease and Stay Creditworthy," Bankrate.com
"Can I Break a Lease to Take a New Job," Nolo.com