How can I cancel my apartment lease?

Need to move early? How to break your lease agreement

Do you need to get out of your lease? Maybe your plans changed or you lost your job. Whatever the reason it can be done. Canceling your apartment lease may not be easy or free, but it can be done.

When you signed your lease agreement, you signed a contract. Like any other contract, there are certain things you agreed to such as how much rent you will pay and how long you have to pay that rent. If you cannot fulfill your lease obligations, there are ways to try to cancel your apartment lease.

5 Considerations for getting out of your lease

1. Know your rental lease

Read your lease! This is the most important piece of advice we can give you so grab your favorite beverage, sit down in a quiet space and read away.

Written into the lease, you’ll find the consequences for breaking it. Be sure to read it carefully to see if you understand the consequences you may be facing, and what you can and can’t do.

If you’ve noticed the lease agreement looks pretty similar from one apartment to the next, you are not wrong. Many landlords use the National Apartment Association (NAA) “Click & Lease” template — it’s reported to be used in over 20,000 communities in 46 states. The NAA created it so there would be some uniformity across apartments around the country.

2. Do you have a reason to cancel your lease with little or no penalty?

There are a lot of reasons why you might want (or need) to break your lease. Maybe you got a job in another state, can’t stand your neighborhood or just can’t afford your rent anymore. Here are some reasons that a landlord might be inclined to give you more leeway.

Health crisis

A death or illness in your family might leave you with no choice but to leave your apartment (and maybe even your city and state).

In these unfortunate circumstances, talk to your landlord to see if you can work out a mutual termination of the lease. 

Active military

Maybe you’re joining the army and have to report for basic training. Give your landlord written notice and a copy of your military orders (and plenty of notice, like 30 days), and you should be able to break your lease.

Victim of domestic violence

In certain states (such as Nevada and Washington), victims of domestic abuse, sexual harassment, stalking, or sexual abuse can break a lease and move. Even if it’s not required by law, your landlord may let you out of the lease if you fall into one of these categories.

Habitability issue

Landlords are required to keep apartments in livable condition so if you can prove that they have not met these conditions you can break your lease. Things such as danger from lead or asbestos, lack of heat or hot water, etc would fall into this category.

Early termination clause

This is one reason why it’s smart to read your lease, as it may already contain an early-termination clause. It would typically contain a buyout clause, where you could pay a certain amount (1-2 month’s rent) to get out of your lease early.

It’ll cost you a bit, but you’ll be free and clear once you pay the fee.

Moving due to job requirement/new job offer

You typically don’t have control over whether your job transfers you to a new location, or if your dream job is in another state. This happens and, most of the time, your landlord will be pretty open to a mutual termination of your lease.

Change in financial circumstances

If your financial circumstances change (job loss, loss of a spouse), you may be able to renegotiate a lower rent rate. They may prefer getting less money from you each month to losing you as a tenant and having to find a new one.

3. No matter what your reason, talk to your landlord

This may be a difficult conversation to have, but don’t put it off. You’re going to want to get your landlord on your side, so talking to them honestly and openly can start that process along. Call your landlord (or arrange an in-person meeting, if they prefer). This does a few things for you:

Helps you make your case.

Talking to your landlord lets you tell your story. Tell your landlord why you are leaving. Honesty is always the most effective policy.

Gives you the chance to make your case.

Your landlord will probably have some questions such as why you are leaving, when, how, etc. You should be sure to ask about consequences of breaking your lease. It’s best to get these questions out in the open early, so you can get on the same page.

Allows you to get on the same page going forward.

Your announcement will be a surprise. Be sure you’re clear about what’s happening and what your landlord is thinking.

4. Try to make right by your landlord

If you have to break your lease, you can often soften the blow by finding your own replacement. This helps avoid some of the nastier results of breaking your lease (like getting sued (see above)) and help your landlord absorb the financial blow of losing a tenant.

You can do this by:

Give as much notice as possible

This is always a good idea. The sooner you start the ball rolling, the better your chances of getting a resolution that works for you and your landlord. This gives your landlord time to digest the details of the situation and work with you to figure out how to best resolve it.

Get a shorter lease

Most often, renters sign a one-year lease. If you need to break your lease early, you should ask your landlord if you can shift to a shorter lease (say, three months or month-to-month). This could be a nice compromise for both of you.

Help find a new tenant

This is perhaps the easiest way to balance the scales for your landlord. If you need to leave and you can find another tenant to take your place, then your landlord won’t need to worry about filling your spot and losing revenue.

You should pull out all the stops and see if you can find your own replacement. Check with your friends, family, and co-workers. Reach out on social media or online (check Craigslist and other local sites where people go to look for housing).

If you can find someone who is at least as qualified for the apartment as you are, then you’ve saved your landlord a lot of work and made sure they won’t lose revenue from your departure.

Transfer your lease

Similar to the above, you might be able to find someone else to take over your apartment. If you do find someone, you might be able to transfer the remainder of your lease over to them. They would take over the responsibility of your lease, and you’d be free and clear. Talk to your landlord about this option to see if the person you have in mind might be a good fit.

Sublet your apartment

Another option is to sublet your apartment for whatever length of time is left on your lease. First, check with your landlord to see if you can do this (see? We told you that communication was key!) and then see if you can find someone to sublet your spot.

Again, you can find potential candidates in the same way you looked for new tenants. If you can find someone who is looking for a short-term stay (someone working a temporary internship, maybe, or someone who is only in town for a few months for work), then that person can finish out your lease and it would be as if you never had to break your arrangement with your landlord.

Work out a payment plan

If you’re getting out of your lease early, you’re essentially costing your landlord a chunk of money that you’d already agreed to pay. If you need to move for some reason, you might be able to work out a payment plan with your landlord, paying off the remainder of your rent while still having the flexibility to move out and onto the next phase of your life!

Since you are inconveniencing your landlord and potentially costing them revenue, finding a way to make up for that could go a long way toward convincing them that breaking your lease is no big deal!

5. Seek legal advice

When all else fails, you can seek out a lawyer in my state or your local tenants’ union and get some advice. Laws about breaking leases differ from state to state, and our advice above is sound, but not tailored to your specific state (or your specific situation!).

If you have specific questions about the language in your lease, about what you can and can’t do, or about things your landlord has said and done, you should take some time to talk to a lawyer and get the answers to the questions you may have. 

Possible consequences of quitting your lease early 

Losing your security deposit

This is one of the reasons why your landlord required you to put down a security deposit in the first place. It’s a bit of insurance for them. If you need to break your lease, at least they get one month’s cushion before they have to find a replacement for you.

This is a bummer for you, as your security deposit is not a small chunk of change, but this consequence is likely spelled out in your lease and is a pretty common one for people who break their leases.

Getting sued

This is a common outcome if you can’t come to another arrangement with your landlord (see below for ways to try and avoid this outcome). If your landlord is unsatisfied with your reasons for leaving, unable to find someone else to rent the space to, or just aggravated (or prone to suing), there’s a good chance you’ll be called into court.

Your landlord will try to get the balance of the rent that you owe. You can defend yourself or end up dropping a lot of money to break your lease.

Your credit will be affected

There are a few possible negative financial consequences that you may face if you break your lease. A judge may decide that you need to pay your landlord back, in full or in a payment plan (see below). Your credit may also be affected by this kind of judgment, which can create problems for you down the line (See below).

Debt collection and garnishment

If a judge enters a credit judgment against you, you’ll be required to pay back the money you owe your landlord. You may be referred to a collection agency, and may even have your wages garnished to pay back the amount you owe.

Difficulty renting the next place

If you do get into a sticky situation involving the law or a credit judgment, expect it to follow you for the foreseeable future. When you apply for your next apartment, your new landlord will know about your credit history and that may hurt you when they decide whether or not to rent you the new place.

The lowdown on getting out of your lease

If you have to get out of your lease, you are probably in a situation that’s complicated. Your move out may be tricky, but getting out of your lease may not be. Make sure you read the lease and talk to your landlord. That will give you a clear idea as to what your options are.

You may find out that you can take steps to make this situation far less painful than it otherwise would be. Just remain calm, keep communicating, and you’ll end up figuring out the best way to get out of your lease!