Ending a lease before it expires can be complicated. Whether you’re moving for your career, facing financial struggles, or dealing with landlord issues, breaking a rental lease requires careful planning. Knowing your rights and responsibilities can help you avoid penalties and protect your rental history.
Your lease agreement is a legal document that outlines your duties as a tenant. Before taking any action, review your lease thoroughly. It likely includes details about how to terminate the lease early, the amount of notice required, and any penalties you may face. Some leases include an early termination clause that explains what fees or conditions apply if you move out before the lease ends.
If your lease has no such clause, you may still have options, especially if your landlord is willing to work with you.
Breaking a lease early can help you move on to a better living situation, but it might also come with costs. In many cases, tenants must pay a fee equal to one or two months’ rent or cover unpaid rent until a new tenant is found. These costs can add up fast, especially if you don’t prepare in advance.
Sometimes, breaking a lease early makes sense despite the cost. If your new job is in another city, or if the property is no longer safe, paying to leave early may be worth it. But don’t make the decision lightly; be sure you understand the financial and legal consequences first.
One of the biggest concerns renters face is how a broken lease might impact their future housing options. If your landlord reports the early move-out to a tenant screening service or credit bureau, it could make getting another apartment more difficult.
A broken lease on your record can raise red flags for future landlords. It may make it harder to get approved for a new lease or require you to pay a larger security deposit. However, not all lease breaks are reported, especially if you communicate clearly, pay any fees, and leave the property in good condition.
To reduce damage to your rental history:
These actions show responsibility and may prevent a negative mark on your record.
-min.webp)
If you break your lease early, you may lose part or all of your security deposit. Landlords often use this money to cover unpaid rent, repair damage, or offset the cost of finding another tenant. However, you still have rights.
Document the condition of the rental before you leave. Take photos, clean thoroughly, and return all keys. Ask for an itemized list of any deductions made from your deposit. In many states, landlords must return unused portions of your deposit within a specific time frame.
If your landlord unfairly keeps your deposit, you may be able to recover it in small claims court. You can learn more about your state’s rules through the U.S. Department of Housing and Urban Development.
If your landlord fails to keep the rental unit livable, you may have legal grounds to break the lease. This is called a “constructive eviction.” It happens when the property becomes unsafe, uninhabitable, or in violation of health or safety codes. For example, issues like mold, broken heating in winter, or plumbing that doesn’t work could make the home unlivable.
Before ending your lease over habitability concerns:
If nothing changes, check with your local housing authority or state tenant laws to see if you’re eligible to move out without penalties. You may also want to talk to a nonprofit housing counselor like those at Credit.org for free advice.
Learn more from Credit.org: Understanding the CDC's Eviction Rules
Active-duty military members have the right to terminate a lease early under the Servicemembers Civil Relief Act (SCRA). If you’re deployed or receive a permanent change of station (PCS) order, you can legally end your lease with proper notice.
To break your lease under SCRA:
This federal law helps protect military families from being stuck in a lease when duty calls.
Many states require landlords to reduce losses when a tenant leaves early. That means they must try to re-rent the unit instead of charging you for the entire remaining lease. You can help by finding a replacement tenant.
Be sure any new tenant is qualified; landlords have the right to screen applicants. If your lease allows subletting, follow the proper steps and notify your landlord in writing. If not, work with your landlord to assign the lease to someone new.
Learn more: Buying vs. Renting a Home: Which is Better?
If you’ve broken a lease or are considering it, protect yourself going forward:
Breaking a lease doesn’t have to ruin your status as a tenant. With clear communication, preparation, and knowledge of your rights, you can leave on good terms and protect your credit and rental history.
Besides HUD-approved housing counseling, Credit.org offers one-on-one rental counseling. If you're concerned about paying your rent every month, talk to an expert about paying down your debt and freeing up income to keep a roof over your head.
