How Much Does it Cost to Break a Lease?

Last Updated: November 13, 2025 by Phil Ahn

Tenants aren’t always able to remain in their rental for the duration of their lease. Perhaps they’re moving for a new job, or they’re dealing with a more serious personal event. Whatever the cause, tenant turnover can occur before a rental agreement ends, so it’s essential to understand the cost of breaking a lease for both renters and landlords.

If a tenant breaks their rental agreement early, landlords can hold them liable for:

All remaining rent
Any property damage
Unpaid rent while the rental sits vacant

Depending on the property’s location, landlords must comply with state law and make reasonable efforts to find a new tenant. Once property owners fill the vacancy, they stop collecting rent from the original tenant.

This guide discusses the costs of breaking a lease, the circumstances under which tenants can exit their agreement without penalty, and the expenses each party is responsible for. We’ll also cover the tenant’s right to sublet, the consequences of moving out early, and how property managers can use rental agreements to protect their investment.

Breaking a Lease Without Financial Penalty

Most states have laws allowing tenants to exit their rental agreement without penalty in the following circumstances:

Permanent change in military station resulting in relocation
Domestic or sexual violence
Landlord harassment or violation of the tenant’s privacy
Unenforceable, illegal, or void rental agreement
The property owner fails to maintain a safe, habitable space
The owner refuses to accommodate a tenant’s disability
Death of the sole tenant
Landlord retaliation against tenants

4 Common Tenant Costs When Breaking a Lease

Tenants typically pay 2–4 months’ rent to break an existing agreement. Some states limit the amount you’d have to pay property owners if they call off their agreement early.

For example, Florida law limits fees and damages to 2 months’ rent (Fla. Stat. § 83.595). Similarly, Minnesota caps the renter’s liability at the rent amount for the required notice period (Minn. Stat. § 504B.178).

However, most states don’t delegate this. When there are no clear legal statutes, property managers may require tenants to pay rent for the entire term of the contract, or until they find a new tenant. Here’s what tenants could be responsible for:

1. Remaining Rent

If a tenant breaks their agreement early, they’re still liable for the remaining rent due. However, some states require rental owners to reduce the potential tenant costs by re-listing the unit.

These states include:

Arizona (Ariz. Rev. Stat. § 33-1370)
California (Cal. Civ. Code § 1951.2)
Connecticut (Conn. Gen. Stat. § 47a-11a)
Wisconsin (Wis. Stat. § 704.29)

Here, the original tenant no longer owes rent once the property owner finds a new tenant.

2. Damages to Property

Whether a tenant exits their contract early or fulfills it to the end, they’ll need to cover the costs of any property damage they’re responsible for.

Remember: Property damage is any destruction due to the tenant’s negligence or fault, not normal wear and tear.

3. Early Termination Costs

If there’s an early termination clause in the rental contract, the tenant will need to pay the financial penalty both parties initially agreed to. By paying the early termination costs, the tenant is no longer responsible for the remaining rent.

4. Whatever the Tenant Negotiates with the Landlord

When both parties are open to negotiation, the rental manager and tenant can reach an agreement on their own. For example, tenants may consent to have their security deposit forfeited or find a new tenant to replace them.

Landlord’s Duty to Mitigate Damages

As mentioned, certain states require landlords to take reasonable action to re-rent the unit and find a new tenant. They can meet their legal duty to mitigate damages by:

Advertising their vacant unit
Showing the rental
Setting a fair listing price
Responding to interested renters in a timely fashion

The original tenant may have to pay rent until the new rental period begins, or the original agreement ends, whichever occurs first. The tenant may also be liable for the landlord’s advertising expenses or leasing commissions.

However, not every state requires rental owners to mitigate damages, such as:

Arkansas
Florida
Georgia
Mississippi
New Hampshire
Pennsylvania
South Dakota
Wyoming
Vermont

Tenant’s Right to Sublet

Instead of backing out of their agreement and incurring financial penalties, tenants can potentially sublet the property. Subletting is when a tenant rents out their unit to a new subtenant. In these cases, the original tenant keeps their agreement with the owner even while a new person lives in the unit.

To legally sublet your property, ensure the rental agreement permits it and that the property manager provides written consent.

Consequences for Moving Out Early

If you’re thinking about leaving before your tenancy ends, but there’s not an urgent reason to do so, consider the potential consequences. You could risk:

Losing the security deposit.
Being sued by the property owner for damages.
A hit to your credit score.
Receiving a negative rental reference in the future.

Here are two questions to ask yourself before ending a tenancy early if it’s not completely necessary:

Can the landlord keep the security deposit?

Yes, but it depends on the amount of damage the tenant caused or the amount of remaining rent. Rental owners can deduct:

Property damage: Excluding normal wear and tear.
The rent lost while securing a new tenant: If the security deposit runs out, they can hold tenants liable for the difference if they’ve made a reasonable effort to re-rent the unit.

Can the tenant be sued for damages?

Yes, landlords can sue tenants for a breach of contract for the remaining rent and any property damage. Claims for damages generally fall under the jurisdiction of the Small Claims Court where the property owner lives.

How Landlords Can Use the Lease Agreement to Protect Their Investment

Top landlords often include an early termination clause in their rental agreements that outlines the terms of exiting the tenancy prematurely. By doing so, they can define the specific fees and penalties tenants will owe, so there are no surprises.

An explicit early termination clause should outline:

Notice requirements
Financial responsibilities
Early termination terms (such as a subletting or security deposit forfeiture clause)
Any other information

Did you know? Cutting a tenancy short could cause financial losses for everyone involved. Even with an early termination clause in place, landlords may have to cover the costs of:

Listing marketing.
Cleaning and maintaining the vacant property.
Painting the unit (if needed).
Property management vacancy fees (if applicable).

The longer your property sits vacant, the more expensive the process becomes. As a best practice, consider using property management software to help expedite listing marketing, rental applications, and tenant screening.

FAQs: Typical Cost of Breaking a Lease

Will breaking a lease hurt your credit?

Only if the property owner reports unpaid debts to a collection agency.

How to break an apartment lease without penalty?

Since tenants are usually liable for damages, they should give rental managers as much notice as possible and write a letter explaining the circumstances.