If you break a lease, you’re ending it for a reason that’s allowed under state law and or the lease agreement’s terms. It can also happen if you and the tenant agree to end the lease early. It’s like a divorce between spouses who still get along.
A landlord may not mind if a tenant leaves early. Given how hot the real estate market is, you may be able to raise the rent and generate more income with a new tenant. Depending on how attractive your unit and neighborhood are, you may want to facilitate your tenant’s departure by making things as easy as possible.
The downside is attracting possible tenants, showing them the property, screening them, and deciding who the tenant should be. This takes time, energy, and some money, but getting more rent is a good thing.
If a tenant wants to break your lease, is this a problem or an opportunity? Depending on how you look at it, you may want to work with the client to make it happen or try to force them to live up to the lease’s terms.
Early Termination Clause
Your agreement may state when and how a tenant can terminate a lease early but pay a financial penalty. The penalty could be a given number of months’ rent, and the tenant would need to provide you notice of a certain number of days (it could be 30) before the person leaves. You may also allow your tenant to sublease the space with your approval.
Active Military Duty
If your tenant is a military member, the federal Servicemembers Civil Relief Act (SCRA) helps service members who relocate due to deployment or a permanent change of station. Those protected in California include members of:
• The Armed Forces (Marine Corps, Navy, Air Force, Army, and Coast Guard) on active duty
• The National Guard, State Military Reserve, and the Naval Militia called to full-time active state or federal service
Their protection starts when they enter duty and finishes 30-90 days after their discharge. To be protected by the law, the tenant needs to:
• Prove your lease was executed before they entered active duty
• Prove they’ll be on active duty for at least the next 90 days
• Give you a written notice with a copy of their orders to deploy or Permanent Change of Station or a letter from their commanding officer stating they’ll be deploying
If the tenant complies with the SCRA, the earliest the lease can end is 30 days after the start of the next rent period.
The Space Needs Extensive Maintenance or Repairs
The existing lease may be near the end of the term, and the tenant plans on leaving. Maintenance may have been neglected, a critical system may be down, or damage from another unit may make living there difficult. If the space is so bad it’s uninhabitable, the tenant may have grounds to stop paying rent or significantly reduce the amount. You may also plan on doing a major renovation, which permits you to start the project early. In these situations, it may be best for both sides to end the lease early.
You Want to Raise the Rent and the Tenant Wants to Leave
There may be many reasons a tenant wants to move on before the lease ends. The tenant(s):
• Lost their job
• Is starting a new job, and the location’s too far away to reasonably commute
• May plan to marry, but the space won’t work if the two of them live there
• Needs to move out to care for a disabled or elderly family member
• Are divorcing and neither, by themselves, can afford to pay the rent
You may have every legal right to say no, but if it’s just a matter of time before they leave, and it helps facilitate a rent increase, or for some reason the tenant rubs you the wrong way, you can avoid a strained relationship by ending it early.
Depending on how desperate their situation, without your cooperation, they may abandon the unit and force you to chase after them for the remaining rent. That may or may not be worth the effort.
We’re Here to Help
If you’re a landlord and have questions about breaking a lease, or you need legal representation in a lease dispute, call Anthony Burton at (949) 244-4207 or complete our online contact form today.
