If you’re a renter, there are many reasons why you may choose to break your lease. However, when you choose to do so, remember that there may be consequences. For example, you may have to relocate for a job or army service with the help of cross country moving companies Shreveport. Or, you’ve found a more affordable lease before your current one expired. Whatever the reason is, breaking a lease requires careful planning. A lease is a binding contract between you and your landlord. This contract allows you to make monthly payments on a rental home until it expires. The duration is usually a year, and you’re legally bound to pay your rent for the entire lease period. And this is precisely why breaking your lease isn’t always advised. So let’s take a look at the steps needed to terminate your lease and the possible consequences of doing so.
Before you break your lease, carefully read the agreement
The first step you have to take before terminating your lease is to sit down and carefully read the terms of your lease. Check each section and see if any include information on how to break your lease, and what the penalties are if you do so. Words such as “early release”, “sublet”, and “relet” should be your guideline. Note down the pages where these words appear so you can go through them again if necessary. Before hiring one of the reliable cross country moving companies Metairie, check if the lease obligates you to provide a notice of your intent to vacate. This clause usually states that you have to alert your landlord one or two months before leaving, or that you have to find a replacement renter. Sometimes, the lease allows you to immediately terminate your agreement. But, this often comes with hefty fees, so read carefully.
Communicate with your landlord openly
It isn’t easy to communicate with your property owner and manager. Nobody likes dealing with official business. However, total transparency is the best way to approach ending your lease. If you want to stay on good terms with your landlord, give them as much notice as you possibly can. It is inappropriate, and against the lease terms, to simply call cross country moving companies Lafayette, and leave without saying a word. By letting your landlord know about your intentions, you show that you respect the agreement and that you’re willing to help them find a new tenant. If you have to end your lease immediately, without giving notice, offer this solution to show that you’re serious about your contract. Help your landlord find someone to sublet from you, or pay a portion of the rent. If your landlord agrees, the process will be very smooth.
Try to find a new renter before breaking your lease
In most states, you and your landlord will have to try and locate a replacement renter, in case you decide to move out early. This is a form of damage mitigation from breaking your lease. Finding a new tenant reduces the payments you’re still due for the remaining months. If you have to find a new renter, you have two ways of going about it. They are:
- Subletting. In this scenario, your landlord will find somebody willing to take over your current lease. They will pay the monthly rent, and they will sign their own sublease agreement. However, the lease will still be under your name. This makes you legally responsible for any damages or late rents, even though you didn’t directly cause them. This is why, before cross country moving companies Lake Charles take you to your new home, it is wise to exchange contact information with the new renter. Keep in mind that you won’t get your security deposit back until the original contract ends.
- Re-renting. This also involves finding a new renter for the unit, with a slight difference. Unlike with subletting, the new person will sign their own lease and pay their own deposit. Your landlord will have to re-list your unit and show the property to an interested renter. The good thing is, that you won’t be bound by your old lease, and you’ll get your deposit back.
Make sure you have everything in writing
Whenever you’re dealing with legal documents, it pays to have detailed records. This is especially true when dealing with money. If you have written records of your landlord agreeing to certain terms, it is hard for them to go back on those terms. In addition, you’re both protected, should the situation become litigious. One of the best ways to do this is by communicating via email. If you happen to have conversations over the phone or in person, remember to take notes of what was said. Once you’re done talking, send your landlord an email with the details of what was covered. Verified Movers advise using the same approach when choosing your moving company. It may seem over the top, but if you take note of everything, both parties will be protected and satisfied.
Reasons why you shouldn’t break your lease
When it comes to terminating your lease, sometimes it can do more harm than good. No matter how well you prepare, you can still experience legal hiccups or expensive fees. Let’s go over a few issues you may face if you decide to end your lease ahead of time.
Early termination can bring hefty fees with it
Simply put, ending your lease can be very expensive. Depending on your contract terms, early termination can cost up to three months’ rent. In this case, it might be better to wait if your lease is ending soon. Besides this fee, you will also lose your security deposit. In addition, keep in mind that you’ll also have expenses and fees at your new apartment. Calculate your budget and your lease duration, and decide whether or not you can afford to terminate early.
Your landlord could take legal action if you break your lease
In some cases, a lease agreement does not allow early termination. If you ignore this and break your lease regardless, your landlord can take legal action. They can sue you for loss of rent, in which case you’ll have to defend yourself in a small claims court. This can be a drawn-out and stressful process, usually followed by additional costs. The worst part is that going to a small claims court is considered a civil judgment. As such, it will go in your public record, and be visible to your future potential landlords.
Your credit score could suffer
Civil judgments don’t appear on your credit score any longer. However, debt collections still do. This can prove to be harmful if your landlord uses a collection agency to collect the remaining owed rent. This could cause a significant impact on your credit score. Any collection accounts will appear on your credit report, and will remain there for a period of seven years.
Finding a new rental home may prove difficult
They say the grass is greener on the other side. But what happens if you can’t reach the other side so easily? Currently, the prices of both renting and purchasing a home are on the rise. This is among the very important things to think about before moving, as searching for a new apartment may take months. So even if you do break your lease ahead of time, you still may end up stuck. It is also worth remembering that in some cases, property management websites will inquire about why you broke your previous lease.