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How Can You Break Your Lease Without Penalty?

There are all kinds of reasons why someone would need to break their lease. Life gets in the way, right? It is a super big problem when the scenario arises. If you find yourself in that situation, one of the first questions you might ask yourself is: what are my options? How can you break your lease without penalty? Good question!

As the premiere property managers in Philadelphia, we get this question often. We know it can come with a little bit of nuance – mixed with a good amount of confusion – for many who have never been put in that situation. It is best to familiarize yourself with the rights and responsibilities that fall under you the tenant. At the same time, you want to dive into specific regulations that can vary based on your location. So let’s take a look.

Table of Contents

Tenant Rights and Responsibilities

The rights and responsibilities of tenants can vary between localities and states. For example, you can find the Consumer Guide to Tenant and Landlord Rights from the Pennsylvania Attorney General a helpful guide for those in Philadelphia and nearby.

Each state typically has a similar document that you can examine in order to find specific regulations on this matter.

How Can You Break Your Lease (in Philadelphia and Elsewhere)

In Pennsylvania, there isn’t an explicit regulation beyond what is outlined in that document:

There is no stand-alone right to terminate a lease early, and many lease agreements do not allow a tenant to terminate early. If you voluntarily move out before the end of the lease, the lease does not allow for early termination, and the landlord has not breached any of their obligations, then you will likely be responsible for paying rent until the lease expires or until the landlord rents the unit to a new tenant.

Of course, if you live in another state, it is important to investigate the regulations in that area. Here are some common ways in which someone might find a way to break their lease without penalties.

Early Termination Cause

Leases can vary a lot. A common part of a lease can contain what is called an early termination clause. This outlines any early penalties or fees that a person would be subject to for breaking their rental lease. Oftentimes it means the tenant is required to pay a few months’ worth of rent. When this is included in a lease, the process can be straightforward and simple because the tenant signed the lease (a contract) and so they agreed on the terms when signing it.

Another thing to consider is timing. If your lease has an early termination clause and requires you to pay the last six months of your rent, but you only have three months left on your lease, you’re probably just better off paying the last few months of your rent as normal. You won’t be living there, but it saves you money by carrying out your lease to the end. You could also talk to your landlord if you have any questions. Maybe you can negotiate in a situation that would benefit both sides.

Legal Reasons for Breaking a Lease

There are ways to avoid penalties and break your lease… and do it without breaking the law. These legal reasons to end a lease early can prevent fines; they are generally things to look at closely to see what your options are.

  • Illegal unit – If your landlord illegally converted empty rooms or an attic into an apartment, breaking your apartment lease is usually penalty-free.
  • Violation of tenant rights – Failing to provide hot water and heat or ignoring broken windows and other safety issues are tenant rights violations. They’re also grounds to break your lease without paying the penalty.
  • Compliance with local housing codes – Do some investigating. Look closely at your place. You might just have legal grounds to get out of a lease if you’re dealing with things like electrical problems, insufficient bathroom ventilation, pest infestations, or other hazards.
  • Military service – Under the Service Members Civil Relief Act, you can usually terminate lease agreements based on active duty military service.

Before you talk to your landlord, look into all the legal reasons you may be able to break your lease without penalty. The more informed you are, the better the conversation will go.

Negotiate with Your Landlord

Start a conversation with your landlord. Who knows! They may be open to negotiating on ending a lease early. You’ll never know unless you try. For example, if the market value of your apartment has gone up, they may jump at the chance of breaking your apartment lease with the idea that they are going to raise rent on the next person. Similarly, if your apartment has a long waitlist, they may be able to fill your unit quickly and with little financial loss. Having these conversations with your landlord may result in you finding out that it is easier than you thought.

FAQ

What Is an Early Termination Clause?

An early termination clause is a section of your lease that outlines what fees you need to pay in order to break it. These are common in leases (but not in all of them). Your first step when you are looking to break a lease should always be to check your agreement.

What Is a Month-to-Month Lease?

A month-to-month lease, also known as a short-term lease, is a rental agreement with no fixed end-date. It generally renews monthly until the landlord or tenant decides to end the lease. If you sign a month-to-month lease, you won’t need to worry about early termination, as you can usually let your landlord know 30 days in advance when you plan to move out.

For Landlords: Consider BMG for Your Property Management Needs

Make sure that you communicate with your landlord or property manager throughout the entire rental process. If you’re asking how can you break your lease without penalty, there is a good chance that you still have some communicating with your landlord to do. If you’re considering ending your lease early, try to educate yourself on local landlord-tenant laws also. Leaving a rental without notifying anybody can result in hefty fines or legal problems.

Bay Property Management Group has a team of reliable property managers who can assist with anything you need throughout the rental process. Whether you need maintenance or have questions about your rental property or lease agreement, our team of qualified managers can help. We offer comprehensive rental management services, from tenant screening to maintenance, rent collection, and more. Contact us today to learn more about our property management services in Philadelphia, Baltimore, Northern Virginia, Boston, Atlanta, and elsewhere.