What Are the Consequences of Breaking a Lease?

By: Brady Merkle

 

What is a Lease?

When renting an apartment or home, the future occupants and the landlord will need to sign a lease before move-in. 

A lease agreement (lease) is a legal document that binds parties to an agreement in which the resident is required to pay to live in housing provided by the landlord. The lease specifies the terms and conditions that both parties must adhere to for a specified period.

Here at Arbors, our lease signing process takes place online for the majority of our market rate units! 

Once an applicant has been approved, our management team will send over the lease to the resident through our online portal. This allows our residents to sign and agree at their convenience – it’s simple and easy!

 

What Does “Breaking a Lease” Mean?

Sometimes the agreements made in a lease are not always followed, whether it be the fault of the occupant(s) or the landlord. When this occurs, it’s called “breaking a lease.” 

Breaking a lease means that a party terminated the agreement before the end date of the specified term. The most common lease break is when a tenant moves out of the rental before the end of the lease. 

Other instances of lease-breaking can include property damage, failing to pay rent, etc.

It’s also important to note that there is a difference between ‘violating’ and ‘breaking’ a lease.

A violation is less severe and occurs when one of the parties does not adhere to a specified portion of the lease. Examples include not maintaining housekeeping standards or disrupting other residents’ enjoyment of the property (ex: playing loud music late in the evening). 

Multiple lease violations will often result in the landlord evicting the renter from the home.

 

What are the Consequences of Breaking a Lease?

While different management companies or landlords may have different penalties in place, breaking a lease often has financial and/or legal consequences. 

For example, if a resident breaks their lease, the landlord may withhold the security deposit and charge additional fees.

Oftentimes, landlords charge fees in order to recuperate the unforeseen loss of income they incur with an unexpected move-out.

Additionally, fees can be charged to cover the cost of repairs for any damage caused to the unit.

These fees are typically depicted in an early termination clause within the lease.  

 

Are the Consequences the Same with Every Landlord?

Every lease is unique. The fee structure may differ from one apartment, landlord, or property management company to another. 

If you’ve rented from more than one landlord, you’d likely see differences between those leases if compared.

It’s crucial for all parties to thoroughly read and understand each lease they sign. Never assume that all rental agreement terms are the same!

All parties being on the same page will help avoid confusion and conflict.

Regardless of the structure of the agreement, a serious violation or multiple small violations of the lease can result in eviction from the property. 

 

Will Breaking a Lease Hinder My Ability to Rent in the Future?

The application and approval process that many landlords conduct include credit checks and inquiry about rental history. This often includes references from the applicant’s previous landlord(s).

When the landlord of the unit you’re applying for reaches out to any of your previous landlords, any break of lease or unpaid rent may be revealed through their conversation. 

A lease break or eviction is arguably the most significant red flag for landlords during the applicant screening process, often leading to denial.

 

All in All…

It is crucial for both parties to thoroughly read, discuss, and understand all of the terms of the lease at hand.

Whether you are a renter or landlord, be sure to honor the lease that you signed to the absolute best of your ability.

It’s the right thing to do, and it’ll save you from dealing with legal, financial, and even social repercussions.

If you’re unsure about a portion of your lease, talk to your landlord. They are there to work with you and want you to understand your lease! 

If you have any other questions about leases or property rentals, we’d be happy to chat!

Reach out to us here at Arbors Management, Inc. at 800-963-1280 or Monroeville@arbors.com.