What if You Don't Pay Charges for Terminating a Rent Agreement?
- A lease agreement is a contract between a landlord and tenant that gives the tenant the right to live in a rental home or apartment for a specific length of time. As long as the tenant meets the terms of the lease, such as paying rent and keeping the rental unit in good condition, a landlord cannot force the tenant out until the lease expires. Similarly, the tenant can't just move out at any time, but is obligated to pay rent until the end of the lease term. If a tenant moves out before the lease expires, the landlord may be able to require the tenant to pay rent until the lease expires or the landlord finds a new tenant for the property.
- Some leases give tenants the option of early termination in exchange for paying a fee to the landlord. The amount of the fee varies, but may be equal to one or two months' rent. Some landlords include a termination fee in all of their leases, while others may add a termination clause at a tenant's request. Sometimes, a lease doesn't contain a lease termination fee clause, but a landlord may request a fee if a tenant asks to break the lease.
Laws on termination fees vary, and in some places, such as New York or Wisconsin, landlords may be restricted in how much they can charge. Landlords also may be obligated to return a termination fee if a new tenant moves in right after the previous tenant leaves. - It is up to your landlord to decide how he wants to handle you breaking your lease while not paying the termination fee. He may decide to sue you for the lease termination fee or even the unpaid balance of your lease. If he succeeds in winning his lawsuit, the judgment will show up on your credit report. He also may report the lease termination to tenant screening agencies, which will affect your prospects of being able to rent a home in the future.
- If your landlord has violated the lease terms or fails to maintain the property, the landlord-tenant act in your area may give you the right to terminate your lease without penalty. Because your landlord may still try to enforce the termination fee, seek legal advice before moving out and document any problems with your rental home in case you have to go to court. In many places, you also must be able to prove that you attempted to notify the landlord of problems and that you gave her sufficient time to take action before you broke your lease.