Lease terminations are legally regulated, and the laws vary across states, municipalities, and localities. The best strategy is to develop your lease termination with a qualified real estate attorney who specializes in local real estate laws and ordinances. Having an attorney-reviewed process in place will protect both your and your renter's rights. Here are all the basics you need to know about early lease terminations before you contact your attorney.

Why Do Renters Break Leases?

Renters do not just break leases because of financial situations. There are a number of reasons that renters break leases, including:

  • Military deployments
  • Domestic violence
  • Family emergency or illness
  • Changes in household size (marriage pregnancy)
  • Job transfers

Beyond personal and professional reasons, renters will also break leases because of rental management failures, including:

  • Unsafe living conditions
  • Illegal entry of privacy violations
  • Unresolved maintenance issues
  • Breach of lease terms
  • Failure to address neighbor disputes

The circumstances behind an early lease termination determine how the law sees it. In cases of renter choice, they typically face a financial penalty for breaching the lease early. In cases where rental managers fail to uphold their end of the agreement, they may find themselves paying fines in civil court. The difference is why it is crucial to work with an attorney.

What Are The Rights And Responsibilities Of Rental Owners For Early Lease Termination?

If you are terminating the lease because of issues like non-payment, harassment, or rental damage, you have rights and responsibilities under the law. These vary based on your location but typically include providing proper notice of lease termination, mitigating any financial damages, and honoring lease termination clauses. If they break the lease, you also have the right to adequate notice, enforce the lease agreement, and pursue legal action in cases of financial harm or penalty.

What To Include In Your Lease's Early Termination Clause

Having an early termination clause in your lease agreement reduces confusion about both your and the renter's rights and responsibilities. Here are some key elements to include:

  • Notice requirements
  • Acceptable reasons for termination
  • Fees and penalties for breaking the lease
  • Renter responsibilities
  • Rental manager responsibilities
  • Security deposit handling
  • Any relevant legal details

Make sure to highlight this section of the lease when you are negotiating the lease agreement with potential renters.

Early lease termination is highly regulated. So, you want to make sure you work with an attorney. At Occupancy Solutions, we help rental managers and owners understand all the legal aspects of rental management. Contact us now to get started.