What happens if you break an apartment or rental home lease?

What is the typical penalty for breaking an apartment lease?

Depending on the situation, a tenant that leaves a contract with no forewarning and no reason could face these consequences:

• Termination/penalty fees
• Legal action taken against the renter
• Difficulty renting future apartments
• Negative impact on their credit score if an unpaid balance goes to collection

Failing to provide adequate notice can result in the landlord or rental company charging the entire remainder of the contract at once.

Are there any special clauses built into a lease for early termination?

Where permitted, some leases include provisions regarding early termination fees, such as one to two months' rent. A renter who speaks with their landlord or rental office and has a valid reason for leaving, such as a job offer out of state, might be able to negotiate an acceptable settlement that's less than the total amount remaining on the lease.

Even if the lease does not have an early termination provision, some landlords are willing to work with tenants. If they can find a new resident willing to take on the lease, the tenant breaking the lease may not have to pay the remaining months' rent. This only typically occurs if you provide the proper notice, though. Contracts typically require some notice—such as 30 days—before leaving.

How to break an apartment lease

Read your rental contract

If you need to end your apartment lease early, find out what terms you agreed to and what the contract says about potentially breaking the lease.

Speak with your landlord or rental office

Explain your reasons for wanting to end the apartment lease early. If you're able, offer to help find a new renter to take your spot. While that responsibility typically falls to the landlord, offering to help shows that you're willing to make the transition as easy as possible. Sometimes the renter can arrange for a sublet, which is an agreement between the renter and the subletter. A sublease is an alternative to breaking a lease.

Review the termination offer

Your landlord or rental office may give you a termination offer. You should expect to pay at least a small fee for breaking the lease. If your landlord or rental office is uncooperative or charges fees that you feel are exorbitant, seek legal advice. You might also look for a tenant's union in your area for advice. These unions exist to help protect tenants and will know your rights when breaking a lease.

When can you break a lease without a penalty?

There are a few circumstances when breaking an apartment lease might be possible with no penalty, depending on your state and situation. You may wish to consult with an attorney in these circumstances.

• If your apartment is unsafe or violates health codes: If living in the apartment puts your health at risk, you may be able to break the lease and move. If you don't have running water for an extended period, there are dangerous gas leaks, or other unsafe situations, the residence may not be fit to inhabit.
• You start active military duty and are called to deploy: The Servicemembers Civil Relief Act (SCRA) protects military service members if they are called to active duty.
• Your landlord enters your home without advance notice: Your home is considered your personal space, and as such, you expect privacy. If your landlord enters to perform repairs or changes the locks without first informing you, you may have a legal cause to terminate your lease.

Can having renters insurance help with breaking a lease?

No, renters insurance typically won’t cover any fees, penalties, or other consequences for breaking a lease. However, you may want to maintain a renters policy to help protect your belongings as well as your assets if you’re liable for damages or injuries. Renters insurance can also protect your belongings while they are in storage or when you're moving. If you currently don't have a policy, learn more about how renters insurance works.

Get renters insurance through Progressive