What is a lease buyout?
How a buyout works
In a buyout, you and the landlord agree on a fixed payment in exchange for ending the lease early. The amount is often a set number of months of rent, but it can be lower or higher depending on how quickly the unit can be re-rented. Once you both sign the agreement, the lease ends on the agreed date.
A buyout is different from a lease break fee that is written into your original contract. Because it is negotiated, you have room to propose terms, such as a move-out date that fits the landlord's rental timing.
- Agree on a fixed payment and a move-out date
- Put all terms in a signed written agreement
- Confirm whether rent is due through the end date
- Ask how the deposit will be handled
Protect yourself
Get the buyout in writing before you move out, and make sure it states that you are released from future rent and obligations. Keep proof of every payment you make. A verbal promise is hard to enforce if the landlord later claims you still owe rent.
Ask whether the landlord will return your security deposit under the normal rules, and confirm that the buyout does not waive your right to it.
Common mistakes
- Paying a buyout without a signed document that releases you from future rent.
- Assuming the landlord will accept any amount without negotiating.
- Moving out before the buyout is finalized in writing.
