Leases are legally binding documents that outline the terms under which an individual may use another individual’s property for a specific period of time. There are two main types of leases: residential leases and commercial leases.
Residential leases are used for apartments, homes, and other places where individuals reside. Commercial leases are leases that are used for places of business.
Because leases are legally binding documents, in general, a tenant will not be able to cancel them. In some cases, a landlord will release a tenant from their lease, especially in cases where the tenant is able to find another suitable tenant to replace them.
There may also be certain conditions under which a tenant may be able to claim their lease is no longer valid, such as if the space is uninhabitable, if the residence violates health and safety codes, or if the lease itself was illegal.
An individual may be experiencing domestic violence and is required to break their lease in order to escape the violence. In that case, it would be considered a legally acceptable reason for getting out of a lease.
How Does a Tenant Terminate a Lease With a Landlord?
Under landlord-tenant law, a lease is legally binding on both parties, the landlord and the tenant. In some situations, a tenant may want to terminate a lease.
There are certain limited circumstances under which a tenant may enforce a termination of their lease, including:
- Periodic tenancy: An example of periodic tenancy is a month-to-month lease. These leases may be terminated by either the landlord or tenant for almost any reason;
- In some instances, prior notice is required, usually thirty days;
- Tenancy at will: With a tenancy at will, either of the parties may terminate the lease at any time, as long as prior notice is given;
- Landlord violation of the lease: If the property is not livable, violating the lease’s requirements, or is unlivable for some other reason, the tenant can insist on leaving for their own health and safety;
- In most states, there are statutes requiring landlords to keep their tenants’ buildings habitable. If the landlord fails to perform this duty, the law may allow the tenant to terminate the lease; and
- Destruction of property: State statutes and lease provisions may allow a tenant to terminate their lease if the premises have been destroyed.
It is important to note that there are certain issues, such as the landlord not obeying a building code or not maintaining common areas, that typically will not warrant the tenant terminating their lease.
Can a Landlord Cancel a Lease?
Landlords are bound by the terms of leases in the same way tenants are. If a lease is legally valid and both of the parties follow the terms of the lease, it will remain valid.
If a tenant violates the terms of the lease, the landlord may seek to have them removed. There are other circumstances when a landlord may terminate a lease, including:
- When both parties agree;
- When the least is illegal;
- If the lease is a month-to-month or at-will lease.
How Does a Landlord Terminate a Lease With a Tenant?
When a landlord wants to terminate a lease with a tenant, they will provide written notice requesting that the tenant take action. Common examples of requested actions include asking the tenant to pay their rent or to vacate the premises.
One common type of notice that is provided is the three-day pay rent or quit notice. This notice requests that the tenant pay their rent or move out within three days of receiving the notice.
If the tenant does not comply with the termination notice in the amount of time specified, the landlord may file an unlawful detainer action. In the alternative, the landlord may begin the eviction process.
In general, evictions require court involvement. If the landlord wants to evict a tenant, they will be required to follow strict procedural rules of the state and, if they are in a rent-controlled market, the city as well.
What Are Some Tips to Consider When Terminating a Lease?
There are several considerations an individual should take into account when they terminate their lease. If they break their lease without having proper grounds to do so, they may be required to pay an early termination fee.
Depending on the terms of the lease, a penalty may be imposed for termination. An example may be having to pay rent for the remaining months of the lease.
In certain cases, a landlord may be able to take action against an individual in small claims court, depending on the amount that remained on their lease. Items an individual should consider when they are terminating their lease or considering ways to get out of a lease include:
- Read their lease thoroughly in order to determine their protocol for terminating the lease or what penalties they may face;
- Speak to their landlord through email, if possible, as they may be willing to work with the tenant;
- Find a new renter, if possible, to take over the lease;
- Consider any termination offers that may be provided in the lease;
- Be prepared to pay early termination fees or another type of penalty for terminating the lease;
- Consult with a tenant’s union, if possible;
- Get all correspondence and agreements in writing, as it will serve as evidence should any legal issues arise;
- Be aware of any exceptions, such as the previously discussed list of circumstances in which a tenant may terminate their lease; and
- Consult with an attorney to ensure they are protected.
There are consequences for violating lease terms for both landlords and tenants. Landlords may be able to use a security deposit to cover a portion of the costs, but this is often insufficient.
What Is the Penalty for Canceling a Lease?
As noted above, there are consequences for both the landlord and the tenant when a lease is broken. If a tenant breaks their lease, they may still be found liable for paying the landlord for the rest of their lease term.
Landlords may use the security deposit, but in most cases, the tenant will still owe additional monies. In certain cases, the landlord and the tenant may be able to participate in mediation and settle on an agreed amount.
However, these types of cases often end up in small claims court. If the court determines that the tenant owes their landlord for the lease term, they will be required to pay the resulting judgment.
Do I Need a Lawyer?
It is essential to consult with a landlord-tenant lawyer if you have any issues, questions, or concerns related to your lease as a landlord or tenant. This is especially important before taking any action. Your lawyer can advise you of the lease laws in your state as well as any notice requirements.
If you are a tenant who needs to break your lease, your lawyer can determine if any of the ways to break a lease discussed above will apply. Your lawyer can also inform you how to provide notice to your landlord. If you are a landlord who needs to break a lease, your lawyer can advise you on the required notice, assist you with any paperwork, and help you file a claim either in small claims court or an eviction, if necessary.
