What is a broken lease?

In short, a broken lease happens whenever you leave a lease before the lease end date.

It can even happen if you forget to turn in your notice to vacate. Unfortunately, this happens often to renters.

Breaking the lease without telling your landlord is a violation of the lease agreement, and it’s a big deal. Usually the property manager will try to collect any remaining unpaid balances from the renter. These “unpaid balances” prove to be a big hurdle and can stain your record, even after you pay them off.

What’s the big deal here?

Leases are legal contracts between a lessor (the person who owns the rented property) and the lessee (the person renting the property).

Most leases have set terms, such as the time period of the rental and payment amounts. These contracts are often used when renting an apartment or house, and they are legally binding.

And so, a broken lease occurs when the renter terminates the agreement before all terms are met.

• For example, if you rent an apartment with a one-year lease but you move out at nine months (and only pay for nine months) you are breaking the lease. Landlords want the full value of the contract.
• Many apartments will charge a larger deposit if you have a broken lease. Be prepared to pay up to 1-2 month’s rent as a deposit. This helps apartments accept renters with higher risk.

<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/43957ad6-0457-44d9-b0c7-ae1655b211fb/Green_Logo2.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/43957ad6-0457-44d9-b0c7-ae1655b211fb/Green_Logo2.png" width="40px" /> Lighthouse Tips for a Broken Lease

• Often, people don’t know they have broken leases. Check that a broken lease isn’t hurting your credit.
• If there’s a remaining balance, pay it off
• Talk to management and explain your situation
• Offer a larger deposit or prepay rent in advance </aside>

You can use the Broken Lease filter on Lighthouse to filter through apartments that typically accept broken leases.

How to rent with a broken lease?

If you have a broken lease, it may be difficult to rent a new property. Landlords are often hesitant to rent to individuals with a history of breaking a lease, as it can be a sign of potential rental payment issues or property damage in the future. In order to rent a new property, you may need to take some steps to improve your rental history and show potential landlords that you are a responsible tenant.

Here are some things you can do if you have a broken lease and want to rent a new property:

1. Pay any outstanding balances or fees from your previous lease: If you broke your lease, you may owe money to your previous landlord for unpaid rent or damages to the property. It’s important to pay these outstanding balances in full before attempting to rent a new property. This will show potential landlords that you are willing to take responsibility for your actions and are financially capable of paying rent on time.
2. Provide references from previous landlords: If you have a history of being a responsible tenant, you can ask your previous landlords to provide references for you. These references can help to demonstrate to potential landlords that you are a good tenant who pays rent on time and takes care of the property.
3. Offer to pay a higher security deposit: If you have a broken lease, you may want to offer to pay a higher security deposit to the landlord as a way of showing that you are willing to take responsibility for any potential damages or rental payment issues. This can help to alleviate some of the landlord’s concerns about renting to you.
4. Be upfront and honest with potential landlords: If you have a broken lease, it’s important to be upfront and honest with potential landlords about your rental history. This will show that you are willing to take responsibility for your actions and are committed to being a responsible tenant in the future.

Overall, it’s important to take steps to improve your rental history and show potential landlords that you are a responsible tenant if you want to rent a new property after breaking a lease.

When is a lease considered broken?

• If you leave a lease before the expiration date or do not submit a notice to vacate, then you have a broken lease.
• Many renters are not aware that their lease requires a 30-60 day written notice, even when the lease term is ending.
• You will always need to submit written notice, based on the terms of your lease (usually 30-60 days) prior to the end of your lease. If not, you may be breaking your lease and charged a reletting fee plus 30-60 days rent. The reletting fee can be 150% of one month’s rent!
• Many leave on what they think is the end of their lease obligation, only to find out later that there is a broken lease and/or outstanding amounts owed to apartments. This information can be found on a credit report, and it will negatively affect approval at future apartments.

What are the damages of a broken lease?

• If a landlord checks your rental history and sees a broken lease, it may affect getting approved at another apartment or rental property.
• Based on what the lease states, you may be obligated to pay rent for the remaining months, and if you do not pay the rent, the landlord may take legal action.
• Furthermore, any unpaid rent and fees may show up on your credit report because of the broken lease. The balance may go to a collection agency for further collection.
• There is also a possibility that you are taken to court if the amount owed is significant and unpaid for a certain length of time.