Unfortunately, you may face penalties for breaking a lease. Before you make any rash moves, you should be prepared for the possible consequences that might happen. As such, we’ve mapped out what those consequences entail, how to possibly reduce them, and instances when you can break a lease without a penalty altogether. Read below for more information.
Key Takeaways
- The penalties for breaking a lease can range from an early termination fee, payment of all remaining rent, forfeiture of your security deposit, getting sued, having bad references, and getting your rental and credit history docked down.
- To get out of a lease early with less punitive measures, you could sublet or transfer your lease (if allowed), look for an early termination clause in your rental agreement, or work with your landlord to find a solution.
- You may be able to break a lease agreement without penalty if your landlord harasses you or invades your privacy, if you have a disability, if you have certain military orders, if your home violates safety and health standards, or if you are a victim of domestic violence.
What Are the Penalties for Breaking a Lease?
You could face penalties for breaking a lease depending on your lease agreement and applicable laws. Later, we’ll get into legal and illegal reasons to get out of a lease early. For now, though, let’s explore the penalties themselves. Some of the most common penalties our Washington DC property management sees on lease agreements are:
- Lease-Breaking Fees: You may have to pay a fee to get out of a lease early. This could look like a few months’ rent, the full remaining rent, or another pre-set amount. Commonly, landlords ask for around 2 months of rent.
- Lawsuits: If you break your lease when your rental agreement and applicable laws don’t permit it, your landlord has grounds to sue you. Then, the court may force you to pay for damages against your landlord.
- Forfeiture of Your Security Deposit: If you break your lease, your landlord may keep your security deposit. Security deposits are designed to cover potential losses tenancies can bring landlords, like unpaid rent.
- Impacted References and Rental History: When you break a lease agreement, your landlord may provide bad references. Also, they may cite this incident in your rental history report. Needless to say, these actions could affect your eligibility for another rental.
- Lowered Credit Score: Some landlords report your rent payments to credit bureaus. So, if you fail to pay any leftover rent from the rest of your lease, it may reflect poorly on your credit score.
How To Get Out of a Lease Early with Fewer Penalizations
There’s no mincing words. You likely could face some penalties for 
breaking a lease. After all, you’re not keeping your end of a legal lease agreement.
However, there are ways you can reduce those penalties to be more manageable. Some harm reduction strategies include:
Look for an Early Termination Clause
Some rental agreements have early termination clauses. With these clauses, you can break your lease with fewer (or no) penalties upon meeting certain criteria. For instance, such clauses may let you go if you break your lease because of medical complications. So, you should check your rental agreement to see if it has this clause.
Have a Discussion with Your Landlord
If you meet with your landlord face-to-face, you can have a truly organic, human interaction with them. When you have a personal, back-and-forth dialogue with them, they may be able to better empathize with your reasons for leaving. They may be less inclined to penalize you, even if it’s technically illegal for you to break your lease. Instead, you can work together to find a solution that meets everyone’s needs.
Sublease or Re-Assign Your Lease
You also could talk to your landlord about handing over your lease to someone else, if there’s no such clause in your rental agreement already. This way, someone else could fulfill your rental agreement in your place. The landlord gets all the income they need, and you can move out more easily. It’s a win-win.
When You Can Break a Lease Agreement with No Penalties, Period
Luckily, there are certain times when you legally don’t have to face penalties for breaking a lease. Essentially, if your rental puts you in a dangerous situation, you may have legal grounds to leave cost-free. Let’s look into these qualifying situations below:
You’re Experiencing Domestic Violence
Depending on your state, you may be protected by laws that let domestic violence victims break their lease fine-free. Typically, you must give your landlord a police report or other proof of the situation to qualify.
Additionally, your local laws will show you how long in advance you must inform your landlord, which method you must use to inform them, and how long you have to move out.
Your Home’s Condition Violates Health and Safety Codes
Your landlord is responsible for tending to any property problems that impact your health and safety. For example, they must deal with water and heating issues, mold, pest infestation, and other critical problems.
To be clear, you’re responsible for informing your landlord of any issues in writing, in the first place. However, once you do so, your landlord must address them in a local law-allotted timeframe. If they don’t do so within the designated period, that may be a justifiable reason to break your lease.
Your Landlord Harasses You or Violates Your Privacy
If your landlord violates your privacy, is violent, threatens violence, or harasses you, that constitutes an inhabitable living environment. For instance, if they cut off your utilities or change your locks, that could be grounds to break a lease agreement legally.
To break your lease this way, you must first document the incidents, give your landlord written notice of your departure, and follow all other applicable laws in your jurisdiction. In particular, the documentation part is crucial because your landlord may sue you for unfounded claims. So, be sure to leave a thorough paper trail of your experiences.
You’re Leaving Because of a Disability
If you need to break your lease because of a disability, you might be able to do so without early termination fees. Basically, Fair Housing Laws may let you request it as a reasonable accommodation.
Note that your disability must count as one under the Fair Housing Act. Your request must not pose an undue hardship on your landlord. Moreover, if your disability isn’t immediately evident, your landlord may ask for verification of it before approving your request.
You’re Going on Active Military Duty
There are no penalties for breaking a lease if you’re breaking it because of a military deployment or permanent change of station order. The Servicemembers Civil Relief Act (SCRA) permits this for those who serve.
To break your lease with SCRA protections, you must follow the law’s conditions for notifying your landlord. In addition, you must:
- Have orders to be deployed for at least 90 days
- Tell your landlord at least 30 days in advance
- Give your landlord a copy of your military orders
- Provide proof that you signed your lease before you were called to duty
Should you check these boxes, you can get out of a lease early with no early termination fees.
Get a Better Rental Experience with BMG
There are numerous penalties for breaking a lease, from fees to lawsuits. Luckily, you can try to work with your landlord to find a solution that benefits everyone. Or, if you meet certain criteria, you may be able to break it without early termination fees.
In the meantime, if you’re looking for your next rental, we may be able to help. As professional property managers, we run rentals with a single-minded drive for customer service and satisfaction.
We can collaborate with you to make terms that meet your needs. We strive to address repairs and other quality-of-life concerns promptly. And most importantly, we have rentals in virtually every shape and size so that you live in a space that works for you. So, look at our listings to enhance your rental experience.
