Breaking a lease agreement in Vermont can feel stressful for both sides, but tenants have clear legal rights to end a rental agreement without penalties. This guide breaks down those rights, the possible consequences, and how both tenants and landlords can protect themselves when leases end early.
Legal Reasons to Break a Lease Early in Vermont
In Vermont, landlords and tenants may end leases before the official expiration date under certain circumstances, including:
1. Active Duty Military
Federal law allows service members to terminate a lease early when they receive orders for deployment or a permanent change of station (PCS). The protection starts the day active duty begins and lasts anywhere from 30 to 90 days after discharge.
Eligible tenants include those serving more than 30 days in the Armed Forces, Reserves, or National Guard, as well as commissioned officers in the Public Health Service or NOAA who receive PCS or extended deployment orders before signing the lease.
Tenants must deliver written notice and official documentation to the landlord. Termination doesn’t happen overnight; it takes effect no sooner than 30 days after the next rent period begins, giving both sides time to plan the transition and wrap up responsibilities properly.
Supporting law: Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901–4043
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
2. Domestic Abuse, Sexual Violence & Other Crimes
In Vermont, tenants facing domestic violence, sexual assault, stalking, or similar abuse can end a lease early without paying penalties. The law shields survivors who submit valid documentation, giving them a way to leave unsafe housing without adding financial strain.
To qualify, the perpetrator must be a household member, intimate partner, or someone with a domestic connection to the tenant. The abuse must involve physical harm, attempted harm, or behavior that causes a genuine fear of imminent danger.
Tenants must give the landlord 30 days’ written notice and provide supporting documentation, such as a police report, court order, professional statement, or self-certification made under penalty of perjury. The lease ends on the termination date, and the tenant remains responsible for rent through that date and for any damage beyond normal wear and tear.
Supporting law: 9 V.S.A. § 4472
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
3. Uninhabitable Living Conditions
In Vermont, tenants can break a lease early (without penalty) when their rental becomes unlivable and the landlord ignores major repair needs after proper notice. The law steps in once serious health or safety issues threaten habitability and the landlord refuses to correct them.
Under Vermont’s implied warranty of habitability, landlords must keep rentals safe, sanitary, and compliant with housing and health standards. Problems caused by the tenant don’t count. Common examples include:
- Gaps or leaks that let in water or cold air
- Faulty or leaking plumbing systems
- No working hot or cold water supply
- Heating failure during the winter months
- Structural hazards like collapsing stairs or unstable floors
To legally end the lease, tenants must send a written notice outlining the defects and warning that the lease will end if repairs aren’t completed within a reasonable time. If the landlord still does nothing, the tenant can move out and terminate the rental agreement with reasonable notice.
Supporting law: 9 V.S.A. § 4458(a)
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
4. Landlord Harassment or Privacy Violations
In Vermont, tenants can’t automatically end a lease just by filing a complaint about harassment or privacy invasion. However, if a landlord’s behavior becomes so intrusive or abusive that living in the rental is no longer reasonable, tenants can ask a court to end the lease or use it as a defense against eviction.
Serious landlord misconduct may justify early termination, including:
- Entering the unit without notice or consent
- Cutting utilities or removing essential services
- Ignoring major repair requests after proper notice
- Harassing or discriminating against tenants based on protected traits under federal law
To protect their rights, tenants should document every violation, notify the landlord in writing, and give them a chance to correct the issue. If the harassment continues or the landlord refuses to act, tenants can move out and argue that the landlord’s conduct effectively ended the lease by making the home uninhabitable.
Supporting law: 9 V.S.A. §§ 4463, 4465
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
5. Unenforceable or Void Lease Agreement
In Vermont, tenants can sometimes end a lease early when the agreement itself holds no legal weight. That happens when someone signs under duress, when a minor signs, or when the unit breaks housing or safety laws that make it illegal to rent.
A lease loses enforceability in Vermont if:
- Signed under duress: The tenant signed because of threats, intimidation, or extreme pressure.
- Signed by a minor: Anyone under 18 lacks full legal capacity to form a binding contract.
- Unit is illegal: The property violates state or local codes (for instance, due to unsafe wiring, lack of plumbing, or absence of a valid occupancy certificate)
When a court rules the lease void, it treats the contract as if it never existed. The tenant can move out immediately, stop paying rent, and request the return of prepaid rent or the security deposit. If the landlord refuses, the tenant may file a small claims action to recover those funds.
Supporting law: 9 V.S.A. § 4454, 9 V.S.A. § 4458(a)(4)
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
6. Landlord Retaliation
In Vermont, landlords can’t retaliate against tenants who exercise their legal rights. State law bars property owners from punishing tenants for reporting code violations, demanding repairs, or asserting their rights under housing, health, or building codes. When retaliation occurs, tenants can defend against eviction, or in some cases, end the lease altogether.
Protected tenant actions include:
- Exercising or attempting to assert legal rights under state law
- Reporting housing or health code violations to public agencies
- Notifying landlords of unsafe or unsanitary conditions
- Joining or organizing tenant unions
Landlord retaliation might look like:
- Filing or threatening eviction without proper cause
- Changing lease terms or raising rent unfairly
- Reducing services like water, heat, or parking access
- Harassing tenants or interfering with peaceful use of the property
Tenants should collect proof (such as written complaints, inspection reports, or sudden lease changes) to show retaliation. Landlords can defend themselves only by proving their actions stemmed from valid, pre-existing reasons unrelated to the tenant’s complaint.
Supporting law: 9 V.S.A. § 4465
Neither tenants nor landlords can waive this right. Any lease clause that attempts to do so is unenforceable.
7. Mutual Agreement Between Landlord & Tenant
In Vermont, landlords and tenants can choose to end a lease early if both sides agree. They usually reach this decision through open communication or by invoking an early termination clause written into the lease. Both parties should sign a written agreement to make it official.
Typical reasons for mutual termination include:
- Job relocation or reassignment
- Financial strain or sudden loss of income
- Health or family emergencies
- The landlord’s intent to sell the property
- Large-scale renovations or redevelopment
- The tenant’s plan to buy a home
When seeking early termination, tenants should explain their situation honestly and suggest reasonable terms. Both sides can then settle on notice length, final rent payments, and what happens to the deposit. A signed document confirms the lease ends on clear, lawful terms and avoids later disputes.
Other Legal Reasons for Breaking a Lease in Vermont
In Vermont, tenants may sometimes end a lease early under special legal protections that extend beyond standard rental laws. These limited exceptions give renters the right to walk away without penalty when events outside their control make the home unsafe or illegal to occupy.
Other qualifying situations include:
Condemnation of the rental property: When state or local inspectors condemn a building and label it unfit for human habitation, tenants gain the right to terminate the lease immediately since the property no longer meets legal living standards.
Supporting law: 9 V.S.A. § 4458(a)(4)
Natural disasters rendering the unit uninhabitable: Fires, floods, or other disasters that inflict significant structural or safety damage can justify early termination. If the rental becomes unlivable or legally off-limits, tenants may end the agreement without further rent obligations.
Supporting law: 9 V.S.A. § 4458(a)(4)
These less common situations are still recognized under Vermont law. Tenants must usually give proper notice and supporting documentation to the landlord.
Consequences for Illegally Breaking a Lease
Tenants in Vermont who break a lease without legal justification often lose their security deposit, risk being sued for unpaid rent, damage their credit, or face poor rental references, making future housing harder to secure.
Landlord’s Duty to Mitigate Damages in Vermont
Vermont law generally requires landlords to make a genuine effort to re-rent a property after a tenant leaves early or abandons it. They can’t simply let the unit sit empty and demand rent for the remainder of the lease. Once they find a new tenant, the departing renter owes rent only for the period the unit remained vacant.
Supporting law: Vt. Stat. tit. 9, § 4462
Tenant’s Right to Sublet in Vermont
Tenants in Vermont don’t automatically gain the right to sublet their rental unit. They must first obtain written permission from the landlord unless the lease says otherwise. With that approval, subletting allows tenants to transfer rent obligations to a subtenant and lessen their own financial responsibility under the original lease.
Supporting law: 9 V.S.A. § 4456b
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