Breaking a lease can lead to financial penalties, legal action, a negative impact on your rental history, and a damaged credit score
. You may be responsible for paying rent until the lease expires or until the landlord finds a new tenant
. Consequences of breaking a lease:
- Financial Penalties You may have to pay a penalty, give up your security deposit, or continue to pay rent until a new tenant is found
. Many lease agreements include a penalty fee, often equal to one or two months' rent, to compensate the landlord for finding a new tenant
- Legal Action A landlord might take legal action against you, such as suing for damages or unpaid rent, which could also lead to eviction
. Breaking a lease is a violation of a legally binding contract, and you may have to pay additional fees as outlined in the lease agreement
- Rental History Breaking a lease can make it harder to find a new rental property because landlords might be hesitant to rent to someone with a history of breaking leases
- Credit Score If the landlord takes legal action, it could result in a judgment against you, which can harm your credit score and make it more difficult to obtain credit in the future
. A landlord or property manager could file a report with a credit bureau or send a collection agency after you to attempt to regain what you owe, negatively impacting your credit history for years
However, you may be able to negotiate with your landlord, especially if you have a valid reason for leaving, such as a job offer out of state
. Some landlords are willing to work with tenants and may not charge the remaining months' rent if you provide proper notice and they can find a new tenant
. Some leases have a termination clause that allows you to end the lease early if you reimburse the landlord
. To protect yourself, it's important to understand your lease agreement and landlord-tenant laws in your state
. If you need to end your lease early, communicate with your landlord and try to reach a mutually agreeable solution
