📋 Tenant Breaking Lease Early: Landlord Rights

What Is a Lease Break?

A lease break occurs when a tenant vacates before the lease term ends without a legally protected reason. This is different from:

• Lease non-renewal: Not renewing at the end of the term (no break)
• Lease termination with notice: Month-to-month ending with proper notice (no break)
• Protected termination: Ending early for legally valid reasons (may not be a break)

Common Reasons Tenants Break Leases

• Job relocation: New job or transfer to different city
• Buying a home: Purchasing their own property
• Relationship changes: Breakups, divorces, moving in together
• Family situations: Needing to care for family member, family emergency
• Financial hardship: Can no longer afford the rent
• Life changes: Health issues, school changes, life circumstances
• Dissatisfaction: Unhappy with property or neighborhood

The Lease as a Contract

A lease is a legally binding contract. When a tenant signs a 12-month lease, they’re agreeing to pay rent for 12 months. Breaking that agreement has consequences:

• Tenant remains liable for rent until the lease ends or the unit is re-rented
• Tenant may owe additional damages (re-renting costs, advertising, etc.)
• Landlord can pursue collection through court
• Breaking a lease can affect tenant’s rental history and credit

You Have the Right To:

1. Hold Tenant Liable for Rent

The tenant remains responsible for paying rent until:

• The original lease term ends, OR
• You find a new qualified tenant to take over

Even if they’ve moved out, they owe rent on the property.

2. Recover Re-Renting Costs

You can recover reasonable costs incurred to find a replacement tenant:

• Advertising costs
• Leasing agent fees (if applicable)
• Additional showing time
• Credit check costs for new applicants

3. Apply Security Deposit

You can apply the security deposit toward:

• Unpaid rent
• Damages beyond normal wear and tear
• Cleaning costs if needed
• Other charges allowed by your lease and state law

4. Pursue Legal Action

If the tenant doesn’t pay what they owe, you can:

• Sue in small claims court for amounts owed
• Obtain judgment for unpaid rent and costs
• Send debt to collections
• Report to credit bureaus

5. Enforce Lease Terms

If your lease includes early termination penalties or fees, you can enforce them (subject to state law).

What Is the Duty to Mitigate?

In most states, landlords have a legal duty to mitigate damages—meaning you must make reasonable efforts to re-rent the property. You cannot simply leave the unit empty and charge the tenant rent until the lease ends.

States Requiring Mitigation

Most states require landlords to mitigate. A few states (like Arkansas) don’t impose this duty. Key examples:

What “Reasonable Efforts” Means

You must take the same steps you would normally take to rent a vacant unit:

• Advertise the property through normal channels
• Show the unit to interested applicants
• Accept qualified applicants who meet your screening criteria
• Not unreasonably delay the process

What You Don’t Have to Do

• Accept unqualified tenants (you can maintain your screening standards)
• Reduce the rent below market rate
• Prioritize this unit over other vacancies
• Spend more on advertising than normal
• Accept less favorable lease terms

Why Mitigation Matters

If you don’t make reasonable efforts to re-rent, you may not be able to recover lost rent from the tenant. In court, the tenant’s attorney will ask what you did to find a replacement. If the answer is “nothing,” you’ll likely lose your claim for rent.

Some situations give tenants legal right to break a lease without penalty. If these apply, your normal remedies may not be available:

1. Active Military Duty (SCRA)

Under the Servicemembers Civil Relief Act, active-duty military members can terminate a lease if:

• They receive orders for permanent change of station (PCS)
• They’re deployed for 90+ days
• They receive orders to live in government housing

Notice required: 30 days written notice with copy of orders

Your recourse: None—this is federal law

2. Domestic Violence

Many states allow domestic violence victims to break leases:

• Must provide documentation (police report, protection order, etc.)
• Often requires 30 days notice
• Some states limit charges to 1 month’s rent

Your recourse: Limited by state law

3. Uninhabitable Conditions

If you fail to maintain habitable conditions, tenant may legally break the lease:

• No heat, water, or electricity
• Serious safety hazards
• Mold or pest infestation you haven’t addressed
• Building code violations

Your recourse: None if you failed to maintain the property

4. Landlord Harassment or Illegal Entry

If you repeatedly violate tenant’s rights:

• Entering without proper notice
• Harassment or intimidation
• Shutting off utilities
• Violating privacy

Your recourse: None—don’t violate tenant rights

5. Health or Safety Issues

Some states allow breaks for:

• Serious health conditions requiring relocation
• Need to move to assisted living
• Elderly or disabled tenant protections

6. Lease Contains Early Termination Clause

If your lease includes an early termination option (e.g., “tenant may terminate with 60 days notice and 2 months’ rent”), they can exercise it—that’s the deal you agreed to.

Which Option Is Best?

Consider:

• Amount at stake: How much rent is remaining on the lease?
• Re-rentability: How quickly can you find a new tenant?
• Tenant’s situation: Will they actually pay what they owe?
• Your time: Is legal pursuit worth the hassle?
• Relationship: Is there value in parting on good terms?

What the Tenant Owes

When a tenant breaks a lease, they typically owe:

1. Rent Until Re-Rented (or Lease Ends)

Tenant owes rent for the period the unit is vacant, up to the original lease end date. If you re-rent after 45 days, they owe 45 days of rent.

2. Re-Renting Costs

• Advertising expenses
• Leasing agent fees or commissions
• Credit check fees for applicants
• Additional administrative time

3. Rent Difference (If Applicable)

If you have to re-rent at a lower rate, tenant may owe the difference for the remaining lease term. Example: Lease was $1,500/month with 6 months left, you re-rent at $1,400/month—tenant owes $100 × 6 = $600.

4. Damage Beyond Normal Wear

Standard move-out damages still apply—holes in walls, stains, damage, cleaning beyond normal.

5. Early Termination Fee (If in Lease)

If your lease specifies an early termination fee, you can charge it instead of (or in addition to, depending on wording) actual damages.

Collection Methods

1. Apply Security Deposit

First line of recovery. Follow your state’s deposit return laws—provide itemized statement of deductions within required timeframe.

2. Request Payment from Tenant

Send a demand letter with itemized amounts owed. Many tenants will pay to avoid legal action and credit damage.

3. Small Claims Court

For amounts under the small claims limit (typically $5,000-$10,000), you can sue without an attorney. Bring all documentation.

4. Collections Agency

Sell or assign the debt to a collection agency. They’ll pursue for a percentage (25-50%). Report to credit bureaus.

What You Can Deduct

• Unpaid rent
• Documented damages beyond normal wear and tear
• Cleaning costs (if unit not left in move-in condition)
• Re-renting costs in many states
• Other charges specified in lease and allowed by state law

What You Cannot Deduct

• Normal wear and tear (faded paint, minor scuffs, worn carpet from normal use)
• Pre-existing conditions
• Damage you caused during the lease
• Costs not allowed by your state’s law

Process Requirements

1. Conduct move-out inspection: Document condition with photos/video
2. Compare to move-in: What’s changed beyond normal wear?
3. Calculate deductions: Actual costs with receipts when possible
4. Provide itemized statement: List each deduction with amount
5. Return balance: Within your state’s required timeframe (typically 14-30 days)

See our security deposit laws by state for your specific requirements.

Move Quickly But Carefully

Your goal is to minimize vacancy while not sacrificing tenant quality. A bad tenant costs more than a few weeks of vacancy.

Immediate Steps

1. Inspect the property: What work is needed before showing?
2. List immediately: Get ads up on major platforms right away
3. Price competitively: Check current market rates
4. Schedule showings: Be available and responsive

Maintain Your Standards

• Don’t skip screening because you’re eager to fill
• Require the same income, credit, and reference standards
• Don’t accept red flags just to end the vacancy
• Document everything for your records

Can You Show While Tenant Occupies?

Usually yes, with proper notice:

• Provide required notice (typically 24-48 hours)
• Schedule at reasonable times
• Coordinate with tenant when possible
• Be respectful of their space while they’re still there

Tenant-Found Replacement

Sometimes the departing tenant offers to find their own replacement. This can work well:

• Make clear they must meet your screening criteria
• You make final approval decision
• Screen the replacement just as thoroughly
• Decide whether to release original tenant or keep them liable

Early Termination Clause

Include a clear early termination option in your lease that specifies:

• How much notice is required (typically 60 days)
• What fee the tenant must pay (typically 1-2 months rent)
• When fee is due (usually before or at move-out)
• That this is the exclusive remedy or in addition to damages

Other Protective Clauses

Lease Break Without Early Termination Clause

Sublease/Assignment Clause