Sometimes life happens, and you suddenly need to move out of your apartment. But what if life happens in the middle of your lease? The first thing to understand is that a lease is a legally binding contract, and not every property management company or landlord will allow you to break your lease and leave early. If this is the case and you absolutely need to move midway through your lease, you may be stuck paying the full remainder of your rent. If your property management company or landlord does allow you to break the lease, here are some things you should know about the process and costs associated with terminating your lease early.
Make Sure Ending Your Lease Early Is Even An Option
The first step to breaking your lease is to find out if it is even an option. Some landlords and property management companies do not allow the early termination of a lease, while others will with some conditions.
If your landlord or property management company will allow you to terminate the lease early, you will likely have to provide a formal notice that you are going to be terminating the lease early. The landlord or property management company will also inform you of the costs associated with leaving early. These costs commonly include paying 2—3 months’ rent, paying for any concessions you were given upon signing the lease, an early termination fee, and forfeiting your security deposit.
For example, if your rent is $1,500 per month, and you had to pay everything listed above, the total you would need to pay to break your lease would be $3,000 for the two months that you need to give proper notice, if you were given two months free rent as a concession then you would need to pay another $3,000 for that, assume an early termination fee of $500, and your security deposit which is generally one month’s rent, so add another $1,500. This would give you a total of $8,000 to break your lease in this particular example.
Providing Notice
Once you know that terminating your lease early is an option, you must give formal notice. Most of the time, you will need to give at least a 60-day notice; some management companies and landlords will require a 90-day notice. In your notice, you should state your desired last day of residency, the reason you need to terminate the lease early and confirm that you understand your financial responsibilities.
Pay What You Owe And Move Out
Once you have provided proper notice, you must pay what you owe and then move out. Do not forget about the expenses associated with moving out. These commonly include a moving truck, boxes, packing supplies, and your time if you do not hire professional movers. Also, keep in mind that you will have expenses associated with moving into a new apartment, usually the first month’s rent and a security deposit. For the example listed above, you could be looking at well over $10,000 to break your lease early and move into a different apartment. If you don’t absolutely have to break your lease early, it is often more cost-effective to ride out your current lease.
Don’t Break Your Lease Unless You Absolutely Have To
Given the high costs of terminating a lease early, it is often much cheaper to finish your current lease. One other thing you may consider to save you money if you must break your lease is to find someone to sublet your apartment, but this can bring a whole new set of costs and challenges. It is highly advisable to finish your current lease term unless it is absolutely necessary for you to move out early.
