Breaking a Lease Early

Find out how state laws differ for when a tenant can or can’t legally break a lease early without penalty. Click the links below about breaking a lease in each state, or read further for a summary of both federal and state-specific laws.

Legal Reasons for Early Lease Termination

There are a handful of scenarios where a tenant can legally break a lease without penalty, and some of them are only applicable in certain U.S. states. Below is a summary of each of those scenarios. Read further to learn more about each in greater detail.

Early Termination Clause

Some modern lease agreements may provide specific terms that would allow a tenant to terminate a lease early in exchange for a penalty fee. Read over the lease and look for any language that outlines agreed-upon terms for ending the lease before the end of the fixed period, such as the amount of the fee (i.e. equal to 2 month’s rent) and the amount of notice required (i.e. 30 days).

If a lease agreement contains an early termination clause, before executing it and paying the penalty fee, read further to learn about other conditions that, if met, would not require a penalty fee to be paid.

Active Military Duty

The Servicemembers Civil Relief Act (SCRA) helps protect active service members who are relocated due to deployment or permanent change of station. The protection begins on the date of entering duty and ends between 30-90 days after the date of discharge.

To break a lease in accordance with the relief act, a tenant must:

• Prove the lease was signed before entering active duty
• Prove they will remain on active duty for at least the next 90 days
• Deliver a written notice to the landlord (example, page 2), accompanied by a copy of the orders to deploy / PCS or a letter from their commanding officer stating their pending deployment.

With that said, the lease does not terminate immediately. Once the notice is delivered, the earliest the lease can terminate is 30 days after the beginning of the next rent period. So for example, if the notice was delivered on the 23rd of March, and the rent is due on the 1st of each month, the earliest the lease can terminate is May 1st (meaning, rent is still due for the month of April).

Note: The term “servicemember” means a member of the armed forces, commissioned corps of the National Oceanic and Atmospheric Administration (NOAA), commissioned corps of the Public Health Service, and the activated National Guard.

Violation of Lease Agreement

If a landlord violates the terms of the lease agreement, it may be enough justification to break the lease and relieve the tenant from their own obligations (i.e. illegally raising the rent during the fixed period). Because each lease agreement is different, carefully read over the duties and requirements for both parties to understand if a violation has been made, and whether or not there is language describing how certain violations are to be handled. Here are a few examples of how a landlord could violate the lease agreement:

• Not getting required inspections. Some states require a new certificate of occupancy or a habitability inspection each time the unit is rented to someone new, or every few years.
• Illegal retaliation. In July of 2019, House Bill 346 (which became § 44-7-24) went into effect providing tenants with protection against landlords that retaliate to actions such as giving the notice to make repairs or reporting to governmental entities about violations in building or housing codes. The bill does not state that these types of illegal retaliation are enough justification for lease termination, but the bill does allow for a sizable penalty against the landlord if they’re found in violation (1 month’s rent + legal fees + $500), which could help offset the costs of penalty fees associated with early termination. Examples of landlord retaliation include:
  • Refusing to make repairs. Landlords are required to keep their rental property in a habitable condition, making it illegal to refuse to make repairs that can affect the tenant’s health or safety.
  • Increasing rent. There are state laws for how often a landlord can increase a tenant’s rent and how much they can increase it by. Landlords must give proper notice, such as 30 to 60 days before a lease renewal and are not allowed to increase the rent by more than is legally allowed in their state.

Note on Landlord Retaliation

Landlords and tenants each have specific rights and responsibilities under federal, state and local landlord-tenant law. If either party is not fulfilling its obligations, the other party has a right to address it. When a landlord-tenant dispute occurs and the landlord tries to evict (or punish) a tenant for any of the following reasons it is likely against state law: 

• If the tenant notifies a building inspector, fire department, health inspector, or other agency about unsafe, unhealthy, or illegal living conditions
• If a tenant joins or organizes a tenant union
• If a tenant follows self-help strategies allowed by their state and local law

Laws have been written to protect tenants from various forms of landlord retaliation. Retaliatory acts covered by most state laws include:  

• Increasing rent
• Ending a tenancy or refusing to renew a lease
• Canceling utilities
• Verbal or physical harassment 
• Withdrawing amenities and services

In addition to House Bill 346, the following states have supplementary statutes concerning landlord retaliation:

Illegal Contract

In some scenarios, a lease agreement may be deemed illegal and as a result, are generally not enforceable.

• Over 1-year lease without a description of the property. For a written lease agreement with a fixed period of greater than 1 year to be valid, it needs to have a clear description of the leased property.
• Illegal units. The definition of what constitutes an illegal rental unit can vary by location and isn’t always entirely clear.

Unit is Uninhabitable

Every state has specific health and safety codes that provide minimum standards for rental units. If those standards are not met, proper notice is given by the tenant and the repairs/fixes are still not made within the allowable time period, a tenant would be considered “constructively evicted”. As a result, the obligations of the tenant under the lease are no longer required, given that the landlord has not met their own responsibilities under the landlord-tenant law.

Habitable premise or “implied warranty of habit­ability” statutes have been written into a majority of state landlord-tenant laws. These warranties cover basic amenities such as hot water, heat, a working roof, and secure flooring and walls. Additionally, dwellings should be free from dangers such as asbestos, lead, and mold. If the landlord refuses to provide the tenant with the implied warranty of habitability, then the tenant may be able to break their lease without liability for future rent. These are considered a tenant’s right, regardless of any conditions a landlord might ask the tenant to sign or agree to in a lease.

Implied warranty of habit­ability varies by state. They typically require the landlord to:

• Deliver the rental premises to a tenant in compliance with the rental agreement, in a safe, clean, and habitable condition
• Comply with health and housing codes applicable to the rental premises
• Make all reasonable efforts to keep common areas of rental premises in a clean and proper condition
• Provide and maintain the following items in rental premises in good and safe working condition:
  • Electrical systems
  • Plumbing systems sufficient to accommodate a reasonable supply of hot and cold running water at all times
  • Sanitary systems
  • Heating, ventilating, and air conditioning systems
  • Elevators, if provided
  • Appliances supplied
• A heating system must be sufficient to adequately supply heat at all times
• Exterminate infestations of rodents and other vermin

Landlord Harassment or Privacy Violation

If the action is serious enough, harassment by a landlord or their violation of a tenant’s privacy may be enough justification for relieving a tenant of their lease obligations.

Tenants who feel their landlord has harassed or invaded their privacy should ask the landlord to stop and then follow up the request in writing. The letter to the landlord should explain how they harassed or invaded the tenant’s privacy and what the tenant plans to do if the behavior does not stop. The landlord’s action must be ongoing—not an isolated incident. These violations can be towards tenants or their guests.

If a landlord repeatedly commits any of the following violations, the tenant may be considered “constructively evicted”:

• Landlord entry. It is unacceptable (and illegal in most cases) for a landlord to enter a rental property without proper notice, to perform redundant inspections, or show up at inconvenient times for the tenant. Most states grant landlords the right to enter their rental property under specific conditions and given they meet set legal notice requirements. Acceptable reasons for a landlord to enter a dwelling would be to make repairs, inspect the property or show the rental unit to a prospective tenant. Landlords might also need to follow legal notice requirements set by their state, typically 24 to 48 hours. Some states require a “reasonable” amount of notice—which is generally considered 24 hours.
• Changing the locks. In some states, if the locks are changed by a landlord without the tenant’s permission or without the protection of specific language in the lease agreement, this can qualify as being “constructively evicted”, and could relieve the tenant of their duties of the lease.
• Other forms of landlord harassment include:
  • Providing personal information about a tenant to strangers
  • Allowing someone to enter the dwelling without the tenant’s permission
  • Sexually harassing a tenant
  • Visiting the tenant’s workplace
  • Restricting guests without cause
  • Spying on the tenant or visiting frequently
  • Cutting off amenities that were included in the lease
  • Refusing to make repairs
  • Raising rent
  • Threatening behavior

Read your state’s landlord-tenant laws for more information on landlord harassment and privacy violations.

These states have laws that protect tenants from harassment such as a landlord entering without notice (or not the sufficient amount of notice) or locking a tenant out:

Domestic Violence

Many states protect tenants who are victims of domestic violence. Some protections available for victims of domestic violence include:

• Protection from termination. Landlords cannot refuse to rent to a potential tenant because they were a victim of domestic violence, sexual assault, or stalking. Additionally, landlords cannot end a lease or refuse to renew a lease because the tenant was a victim of domestic violence, sexual assault, or stalking.
• If you request the landlord to change your locks and they fail to do so within 24 hours of your request, you may then change the locks yourself. If the restrained person is also a tenant of the unit, that person is still responsible for upholding their end of the lease.
• Proof of status. A landlord is entitled to verify the claim of domestic violence status. The tenant is required to attach a copy of the restraining order, emergency protective order, or police report to their termination notice they provide to the landlord.

If you are confronting a domestic violence situation (this can also mean stalking), and want to move, check with local law enforcement regarding special state laws that may apply in domestic violence situations. The following states have landlord-tenant laws concerning domestic violence situations:

Mandatory Disclosures

Many state and local laws require landlords to disclose documentation, policies, or specific unit information to tenants prior to moving in. Since these laws vary from state to state (and sometimes by city or county) it is important to have your agreement looked over by a landlord-tenant attorney in your state to guarantee the correct disclosures are included in your lease.

Some disclosure laws impose heavy fines or legal ramifications to landlords if they are not followed. Others contain penalty provisions and may allow you to break your lease. If your landlord fails to provide you with a mandatory state or local disclosure speak with a landlord-tenant attorney in your state to determine what can be done.

Mandatory state disclosures may include:

Pest control. If the landlord has a contract with a pest control company, the landlord must provide new tenants with a notice that is provided by the pest control company.

Methamphetamine Contamination. If a health inspector finds that a unit is contaminated with chemicals from the production of meth, the tenants must move out of the unit, and the landlord must also serve the health inspector’s notice to future tenants.

Demolition Permit. If a building has applied for a demolition permit, the landlord must give notice to the current tenants and prospective tenants before they pay an application fee.

Military Ordnance. The landlord must notify prospective tenants if the rental property is located one mile from a closed military base where live ammunition or explosives were used.

Death in Unit. The landlord must disclose if the prior tenant died in the unit within the last three years, and why. However, if the prior tenant died in the unit because of AIDS, the landlord does not need to disclose that the prior tenant died of AIDS.

Mold. Landlords must provide written disclosure to prospective tenants of the potential health risks that may result from exposure to mold.

Utility. The landlord must disclose whether gas or electricity in the rental also serves other areas and must disclose how costs will be fairly allocated.

Flood Hazard. The landlord must tell their tenant whether the property is located in a flood hazard area or an area of potential flooding.

Bed Bugs. The landlord must provide all new tenants with general information about bed bug identification, behavior and biology, the importance of cooperation for prevention and treatment, and the importance of tenants promptly reporting (in writing) any suspected infestations to the landlord.

Security Deposit. The landlord must tell their tenant how they will hold the deposit, whether it will earn interest, and how long the landlord has to return it after the tenancy ends.

Move-in checklist. The landlord must provide their tenant with a move-in checklist.

Landlord-tenant laws. The landlord must provide a copy of their state or local landlord-tenant laws such as rent control rules.

Name and Addresses. The landlord must provide the identity of the landlord and the person authorized to receive legal papers and manage the premises.

Mandatory federal disclosure:

The only federally required landlord disclosure pertains to lead-based paint. Known as Title X, this disclosure is designed to protect families from exposure to lead from paint, dust, and soil. Section 1018 of this law requires the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of housing built before 1978.

Health Crisis

If you, a dependent living with you, or your co-tenant, face a serious physical or mental health issue you may qualify for early lease termination without obligation to pay the entire balance of rent due. Some states offer permitted, health-related lease-breaking arrangements that are age-restricted. Most states require a note from a locally licensed physician and at least 30 days’ notice. Since not all states allow this statute, be sure to check your state’s landlord-tenant handbook for further information.

Examples of Insufficient Justification for Lease Breaking

The below reasons are generally not enough justification (on their own) to release a tenant from the obligation of their lease term, and as a result, provide no legal protection against penalties for not honoring the lease.

• They bought a house
• They are relocating for a new job or school
• They are upgrading or downgrading
• They are moving in with a partner
• They are moving to be closer to family
• Breaking a lease for any of the above reasons or in any conditions not previously outlined can have tangible consequences for tenants.

Tenant’s Options if Legal Justification is Not Met

If the previously stated legal conditions are not met, there are still a few options that a tenant has that could allow for them to not be obligated to pay rent until the end of the fixed period.

Speak with the Landlord

Some landlords may be understanding and willing to negotiate with a tenant. Every situation is different, and every landlord is different. A tenant’s best chance at getting a landlord to work with them is, to be honest about the reasons for leaving, to provide as much notice as possible, and to propose possible resolutions that could be mutually beneficial (i.e. by paying 2 month’s rent).

Aid in Finding a New Tenant

If the tenant moves out before the end of the fixed period, they are still required to pay rent until the end of the period until a new tenant is found. During the remaining period, the landlord may be required to make a reasonable effort to find a new tenant, this is called “mitigating damages.” Therefore, the previous tenant may choose to be proactive and help to find a new tenant on their own, instead of waiting for the landlord to find one. The landlord does not have to accept the newly found tenant if they have reasonable justification (i.e. they have bad credit or rental history), but helping to find a new tenant can only help increase a tenant’s chances of being relieved of future rent.

Your Landlord Could Be Required to Try to Rerent

Many states require landlords to take reasonable steps to rerent their unit when a tenant breaks their lease. This is the landlord’s duty to mitigate damages. This means that if you leave your lease early and your landlord rerents the unit before your lease ends, then the rent received from the new tenant will apply to your debt.

Tip: If you have broken your lease, and you live in a state that requires your landlord to mitigate damages, you should still plan on losing at least one month’s rent. Even if your state law requires the landlord to make a reasonable effort to rerent, in civil court it is common for a judge to award landlords with at least one month’s rent (no matter how quickly the unit is rented).

Keep in mind, not all landlords are aware of their duty to mitigate. If your landlord demands payment for the remaining balance of your lease, and you live in a state that requires them to try and rerent, you may want to notify them of the state law. Here are the states that require landlords to mitigate damages:

Sublet

If your lease does not prohibit subletting, then you should be in the clear to do so. However, your lease might contain a clause requiring you to obtain your landlord’s approval prior to subletting. To get landlord approval you will want to send them a letter through certified mail, with a return receipt requested, outlining the terms of the sublet lease agreement. Certified mail is the only proof of delivery that most courts will accept in case you need to prove that you notified your landlord.

The following states have specific requirements that need to be met in order for a tenant to legally sublet:

Consequences of Illegal Lease Breaking

If a tenant breaks a lease without mutual agreement from the landlord or without the proper legal justification and does not pay the rent due for the remainder of the fixed period, the tenant faces the following consequences.

Loss of security deposit. Usually, at a minimum, a landlord may choose to withhold the security deposit.

Lawsuit. A landlord may sue the tenant for unpaid rent during the fixed period, which if won, could result in the tenant facing a money judgment. That judgment, if not paid on the spot or if terms are not set for a long-term payment plan, could result in the garnishment of the tenant’s wages or bank account.

Impact on credit score. While a money judgment won’t show up on a tenant’s credit report (thanks to the National Consumer Assistance Plan), if the landlord chooses to go an alternative route to collecting on unpaid rent by using a debt collection agency, the tenant’s credit score could be severely impacted.

Difficulty in finding future housing. Whether or not a tenant provides the landlord’s name & contact information themselves when looking to buy or rent in the future, a background check will most likely provide the future landlord or mortgage lender with that information. That previous landlord could provide a very negative reference.