Breaking a Lease – Is it a Good Idea?

It is better to pay your rent on time than to break a lease. If you pay rent in full each month, including any late fees and any back rent, breaking a lease will not harm your credit. However, breaking a lease usually will damage your credit, especially if it leads to unpaid debt. For instance, if you break a three-month rental lease in the second month and then the landlord cannot find a suitable substitute, you may have to pay the entire third month’s rent. If you do not pay your lease, the landlord may have legal recourse to take away your home.

Why Need Breaking a Lease?

breaking a lease

In some cases, there are good reasons to break a rental agreement. For example, teenagers who are moving out of the parents’ house are usually required by law to sign a contract and living with their friends on a shared roof does not fit this definition. Also, tenants in apartments that are under the provisions of an expropriation plan, or tenants in buildings that are being sold because the owner intends to demolish them or sell them for profit, are all likely to benefit from breaking a lease.

If you decide to break your lease, be sure to talk everything over with the tenant, landlord, and other people involved, such as family members, before proceeding. If you are planning to move out early or cancel your lease, the tenant may be expecting you to honor your commitment and may sue for breach of contract and unfair treatment. If you break your lease term, it is possible you could lose your home altogether or be evicted after a lengthy legal battle. Thus, it is important that you carefully consider your options and make a wise decision, rather than rush into something you may later regret.