How to Break a Lease: Tips for Renters and Landlords

Table of Contents

Figuring out how to break a lease can feel overwhelming. This guide is here to help you make sense of it all, whether you’re moving for work, dealing with an unexpected change, or just need a fresh start. 

We’ll explore options and steps, providing a practical roadmap to help you understand your tenants’ rights when breaking a lease. 

We are real estate professionals, not attorneys. This information is provided for general guidance only. For advice specific to your situation, we strongly recommend consulting with a legal expert.

Why Breaking a Lease Can Be Tricky

A lease is a legally binding agreement. Signing one means you’re committed to paying rent for the entire lease term, even if you need to move out early. Breaking a lease early can come with many potential penalties.

Financial Stakes: What’s the Cost?

Breaking a lease often comes with financial consequences.

These could include:

  • Paying a specified early termination fee outlined in your lease.
  • Covering the remaining rent for the remainder of your lease term.
  • Potential legal fees if your landlord takes legal action to recover lost rent.

Impact on Future Housing

Beyond finances, breaking a lease can impact your ability to secure future housing. Landlords often look at rental history, and a broken lease could be seen as a red flag. This can affect your credit report, making finding your next dream apartment tougher.

3 Strategies on How to Break a Lease with Less Stress

Although breaking a lease might seem like a daunting task, there are some things you can do to help you break a lease with minimal hassle.

1. Dig Deep Into Your Lease Agreement

Start with understanding the document you signed. Does it include an early termination clause? This clause might allow you to move out early with proper notice, maybe by paying a fee.

Pay close attention to sections covering allowable reasons for breaking the lease without penalties, like military deployment or a job transfer. Look for any mention of a landlord’s duty to mitigate damages, meaning they must try to re-rent the unit as soon as possible.

2. Initiate an Open Conversation with Your Landlord

Landlords are people, too. Many understand that life throws curveballs and may be open to negotiating a tenant break. Explain your situation openly and honestly.

If your reason for needing to opt out of your lease isn’t covered legally, they might be willing to work with you, especially if it means avoiding a potentially vacant unit. They also might be open to converting to month-to-month leases if your situation allows.

3. Actively Help Find a Replacement Tenant

Help your landlord find a new tenant for your unit. Let them know that you will be actively seeking a replacement that meets their screening criteria. This shows your landlord that you are trying to fulfill the obligations outlined in your lease agreement.

If you find someone who meets their screening criteria, you could be released from your financial obligations sooner. Check if your lease permits subletting—this option allows you to find someone else to take over your rent payments, easing financial burdens.

3 Legal Justifications for Breaking a Lease Without Penalties

Certain circumstances allow for you to break a lease without facing hefty penalties. Landlord-tenant laws vary by state, but here are some general situations where you might have legal grounds to break your lease:

1. When Your Living Space is Uninhabitable

If your apartment becomes unsafe or uninhabitable due to the landlord’s neglect, like pest infestations or lack of necessary repairs, you might have grounds to break the lease without penalties. This could be considered a violation of the landlord’s duty to provide a habitable living space, giving you the ability to legally end the lease.

Document everything. Pictures, videos, and written records of your attempts to get your landlord to address these issues are crucial. Providing your landlord with written notice of the issues and giving them a reasonable time to fix them is important for building a case.

2. When Your Safety’s at Risk

If you’re a victim of domestic violence or sexual abuse or experience similar situations that jeopardize your safety at your residence, you often have legal protection to break your lease without penalties. In these situations, your safety and well-being become paramount.

Laws like the Violence Against Women Act and some state laws offer protection, potentially allowing you to break your lease without financial penalty. Be sure to thoroughly research the tenant laws in your specific state.

3. Military Duty Calls

For those in active military service, the Servicemembers Civil Relief Act (SCRA) provides protection for those who need to break a lease due to a Permanent Change of Station (PCS) or deployment order.

The SCRA ensures you aren’t held to your lease under these circumstances. This means that if you receive military orders that require you to relocate, you are usually able to legally break your lease without facing financial penalties.

What Happens When You Break a Lease in Washington, D.C.

Each state and district has its own unique landlord-tenant laws, and Washington, D.C. is no exception. D.C.’s regulations can differ significantly from those in other areas, like Virginia or Maryland, making it crucial to understand your local laws to protect your rights.

In Washington, D.C., the Rental Housing Act governs most aspects of renting, including lease termination. If you’re considering breaking a lease, it’s important to understand D.C.’s requirements for doing so. For example, breaking a lease without a legally valid reason—such as military deployment, domestic violence, or unsafe living conditions—could result in penalties, including paying rent for the remainder of the lease or until a new tenant is found.

D.C. has specific tenant-friendly protections in place, but the process can still be complex. Familiarizing yourself with the local laws is essential, and resources like the D.C. Office of the Tenant Advocate can help clarify your rights and responsibilities.

Remember, it’s always wise to consult with a legal professional before making any decisions about breaking a lease. A lawyer familiar with Washington, D.C. laws can provide tailored advice and help determine if you have grounds to break your lease without facing significant penalties.

FAQs about How to Break a Lease

How much does it cost to break a lease in Maryland?

The cost to break a lease in Maryland depends on the specific terms of your lease agreement. Typically, landlords may require you to pay 2-3 months’ rent as a penalty if you don’t have a legally valid reason for early termination. It’s advisable to review your lease and consult with an attorney who specializes in Maryland tenant laws to understand your rights and potential costs. Always check your lease and local laws or seek legal advice to confirm your obligations.

How much does it cost to break a lease in Virginia?

In Virginia, breaking a lease usually involves paying a penalty, which could be up to 2 months’ rent, depending on your lease agreement. Some landlords may also require you to cover rent until a new tenant is found. It’s important to carefully review your lease terms and seek legal advice if you’re unsure about the implications of breaking your lease early. Consulting your lease and local laws or getting legal advice is recommended to fully understand your responsibilities.

How much does it cost to break a lease in Washington, D.C.?

In Washington, D.C., the cost of breaking a lease can vary based on the terms of your agreement. Landlords may charge a penalty, typically equivalent to 1-2 months’ rent, or require you to pay rent until a new tenant is secured. D.C. has specific tenant protection laws, so consulting with a legal expert familiar with local laws is recommended. Always review your lease and local laws or consult a legal professional to ensure you understand your obligations.

What is the best reason to break a lease in D.C., Maryland, or Virginia?

The best reason to break a lease in D.C., Maryland, or Virginia is one that is legally justified, such as military deployment, domestic violence, or uninhabitable living conditions. Honesty about your situation is crucial, as providing a legitimate reason is more likely to result in a favorable outcome. Be sure to consult your lease, local laws, and, if necessary, a legal expert to confirm your grounds for breaking the lease.

Making Informed Decisions: Protect Yourself When Breaking a Lease

Breaking a lease can stir up many emotions. It’s crucial to approach this process thoughtfully. Stay calm, gather the needed information, and, if in doubt, seek legal guidance. Want to learn more about lease management for property managers, contact us today

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Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

Owner Portal Reports
  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

Enhanced Rent Roll Report
  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

Unit Comparison Report
  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
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Income Statement Month-Over-Month:

Income Statement by Month Report
  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

Owner Portal Documents
  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

Owner Portal Property Statement

You'll also find a month-over-month operating statement:

Month over Month Statement

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

Commincation Dashboard Screenshot
  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Owner Portal New Message Screenshot

Responses will show up in the conversation ticket:

Portal Conversation Response Screenshot
  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Owner Portal Comment

Each conversation will be logged in its entirety:

Portal Conversation Snapshot

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

Owner Ledger Dates
  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

Ledger Property Column
  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

Owner Ledger Description Column
  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

Owner Ledger Amount Column
  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

Owner Ledger Account Balance Column
  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

PW Portal Filters

View a snapshot of income and expenses on your dashboard:

PW Owner Dashboard View

See every transaction in real-time on your ledger:

Owner Portal Ledger View

Statements and forms will be posted to your documents library:

Owner Portal Document Library

View a suite of real-time financial reports:

Portal Reports View

See a running list of all bills, and drill down for more detail:

Owner Portal Bills View

Under Bill Details, you'll find dates/descriptions/amounts and more:

Portal Bill Details

You can also communicate with your Account Manager through the portal:

Owner Portal Communication Tools

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

Net Distribution

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.