Can Landlords Break a Lease Early? Know the Law

The rental agreement details the terms and conditions to which the landlord and tenant consent regarding a rental property. This contract specifies the length of time the tenant is to occupy a house or apartment. In most cases, the tenant stays until the contract expires.

However, there are cases wherein the landlord breaks the tenant’s lease early. Breaking a lease can’t be done without good reason. We’ll discuss valid reasons to break a lease agreement early and how it’s supposed to happen.

Can a Landlord Break a Lease Early?

Yes, early lease termination is possible and legal if there is a good reason behind the eviction. The landlord must be able to justify the eviction to legally terminate the tenant. Otherwise, the tenant may have legal grounds to sue the landlord.

What’s in the Lease Agreement?

The lease agreement serves as the main source for the landlord and the tenant regarding the rental property. Both parties should refer to the contract as their guide when navigating the eviction process. The rental agreement should include the following information:

1. Rent amount and due date
2. Payment method
3. Late fees, if applicable, and a grace period before an eviction notice
4. Occupancy limits, including pets
5. Maintenance responsibilities, including which tasks the landlord must take care of
6. Security deposit details
7. House rules, especially if the property is in a building
8. The lease expiration

Landlords are free to add provisions to safeguard their best interests. However, these clauses must be within the legal boundaries of the state where the property is situated. These terms outline what’s allowed and prohibited for both parties, which is why it’s imperative for the tenant to carefully read the lease agreement before agreeing to its terms.

Likewise, the landlord must respect all terms and conditions stipulated in the contract. Violating the lease agreement can lead to legal issues.

Landlord Rights: Legal Reasons for Breaking a Lease

There are various reasons for breaking a lease that the landlord can invoke:

Selling the Property

Property owners can sell the property where the tenant lives before the contract expires. Sometimes, the new owner waits for the current lease agreement to expire before moving into the property. In select cases, the new owner prefers to move into the property before the lease expires.

It’s imperative to refer to local laws when this is the reason for breaking a lease early. Some states mandate that the landlord provide proper notice of at least 60 days before the tenant must vacate the premises. In other states, both parties defer to the contract on the rules regarding early termination.

The landlord can pay an early termination fee to help the tenant navigate the sudden change. However, the tenant doesn’t have to accept this fee. They can choose to wait until the lease agreement officially expires.

It would be practical to include a sales clause in the contract for both parties to navigate this process better. This would help the landlord manage both their tenant and property buyer.

Bad Tenant Behavior

Lease violations are legal grounds for early termination. Let’s say the tenant destroys the property through an unauthorized renovation or a huge party. The landlord can ask the tenant to vacate the place if they’ve caused much damage to the premises.

Another good example of bad tenant behavior is illegal activities on the property. If the tenant engages in drug dealing or use, the landlord may evict them.

The written agreement may include other provisions that would clearly define what counts as bad tenant behavior. That’s why it’s imperative that both parties review the contract terms and conditions.

Nonpayment of Rent

Not paying rent is one of the most common legal reasons a landlord would break a lease early. Some tenants make honest mistakes and miss paying rent for a day or two. Some stop paying rent entirely and live on the property rent-free.

In either case, the landlord must refer to the lease agreement. The contract specifies how much the tenant should pay and when they must pay. It also stipulates when the tenant can be evicted due to nonpayment.

Just because a tenant missed paying rent on time doesn’t mean they must be automatically evicted from the rental property. Local laws must be referred to because some states permit tenants a grace period to ‘cure’ the issue or make payment before the eviction process can begin.

The tenant can also negotiate terms with their landlord if they can’t make payment on time. As long as the landlord agrees to the conditions, missing a payment doesn’t mean automatic eviction.

Extensive Repairs

According to the American Apartment Owners Association, the landlord can break the lease early if the property needs to be repaired extensively. This entails that the repair would require total access to the property, which would affect its habitability.

For example, some repairs require the water utilities to be shut off for a certain period. This would make it challenging for the tenant to live on the property. Both parties must negotiate on favorable terms so that the early termination would cause less trouble. The landlord may have to pay an early termination fee to compensate for the inconvenience.

How to Break a Lease Early

Regardless of whether the early termination is due to unpaid rent or health and safety standards, the landlord must follow proper protocol. Here’s the step-by-step process for eviction to avoid potential lawsuits:

1. Furnish a written notice to the tenant: The landlord must refer to state laws regarding eviction requirements. As mentioned, select states mandate that the landlord allow the tenant to cure the issue and maintain their good standing.
2. Justify why they’re breaking the lease early: The tenant has the right to know why they’re being asked to leave the property before the lease expires. There should be evidence to support this reason.
3. Provide a reasonable notice for moving out: Unless it’s an emergency or the tenant was engaged in illegal activities, the landlord must provide the tenant enough time to vacate the premises. The period would depend on the contract terms, but in most cases, the tenant is given 60 days to move out of the premises.

Types of Notices Landlords Can Serve

Even if the tenant was the one with lease violations, it’s still mandated for landlords to deliver a written notice when breaking a lease early. Specific terms may be required in the notice. In select states, the notice must be sent in a particular way, like snail mail, or within a specific period before termination can officially begin.

If the tenant violates the contract, the landlord can issue one of the following:

Pay Rent or Quit

The tenant must pay rent within a specific period or leave the premises. This notice is usually served when the reason for breaking the lease early is nonpayment of rent.

Cure or Quit

This option gives the tenant the opportunity to fix specific issues within a particular timeframe. Otherwise, they must leave the rental property. An example is when the tenant damages the property. They should remedy the situation within the provided grace period.

Unconditional Quit

The tenant won’t be given a chance to fix the issue. When given this notice, they must leave the property even if they offer to remedy why they’re being asked to go before the lease expires. This option is usually exercised when the tenant has breached the contract severely.

Special Considerations for Active Service Members

The Servicemembers Civil Relief Act (SCRA) states that it’s prohibited to evict a service member because they failed to pay rent on time. This federal law allows protected individuals to delay eviction proceedings for at least three months. The eviction can only proceed if the landlord gets a court order.

The service member doesn’t have to be physically present on the property to enforce the protection. Their dependents, including spouses and children, are granted this SCRA right.

However, protection from eviction applies to eviction due to nonpayment only. Other lease violations would warrant the eviction to proceed. Moreover, the military tenant must prove they’re eligible for SCRA rights.

Conclusion

Early lease termination is possible if the landlord can justify the eviction. That is why both parties need to thoroughly analyze the termination clause in the contract. When dealing with a service member, it’s vital to determine if the tenant qualifies for SCRA protections. SCRACVS can help landlords verify if their tenant qualifies for SCRA rights. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

What are the illegal reasons for breaking a lease early?

Illegal reasons for ending a lease before it expires include changing one’s mind and wanting to move out because of a job. The contract serves as the primary reference material for determining what constitutes a legal reason for breaking a lease before it ends.

Can a tenant stay in the property until the lease expires?

Yes. The tenant has the right to remain in the rental property until the contract expires. This is unless they violated the lease terms and conditions. While the landlord may offer an early termination fee, the tenant doesn’t have to accept this fee.

How long must the notice be for eviction? 

This would depend on state laws and the contract. The notice would be shorter for month-to-month lease agreements than a contract covering an entire year. In most cases, the landlord must give the tenant 60 days to leave the property.

What are the best reasons for breaking a lease early?

One of the best reasons for ending a lease early is nonpayment. In most cases, tenants can be kicked out of a property if they don’t pay their rent. Another valid reason for eviction is contract violations. It’s best to refer to one’s contract to determine the legal grounds for eviction.

What happens if a landlord violates a tenant’s rights while breaking a lease?

The tenant may file a lawsuit if their rights have been violated. This is why the landlord needs to follow proper protocol when asking the tenant to leave the property.