What happens if I break my lease early?
Financial consequences
When you break a lease, you are generally responsible for the remaining rent. However, in most states, landlords have a duty to mitigate damages, meaning they must make a reasonable effort to re-rent the unit. If they find a new tenant quickly, your obligation may end sooner.
You might also lose your security deposit, which can be used to cover unpaid rent or damages. Some leases include an early termination fee, often one to two months' rent, which you may owe instead of the remaining rent.
- Owe rent until a new tenant is found or lease ends
- Lose security deposit
- Pay early termination fee if specified in lease
- Potential legal action if you don't pay
Other potential consequences
Breaking a lease can affect your credit if the landlord sends the debt to collections or sues you. It may also make it harder to rent from future landlords who check references.
In some cases, your landlord may not pursue you if they re-rent quickly, but you should not assume that. Always communicate with your landlord and get any agreement in writing.
Common mistakes
- Thinking you can just walk away without any financial responsibility.
- Assuming the landlord must re-rent immediately; they must make reasonable efforts, but it can take time.
- Ignoring the issue and hoping it goes away; this can lead to collections and credit damage.
