Most people who rent are respectful of their lease agreement and abide by the terms and conditions you set as a landlord. However, that doesn’t mean every tenant will. You may have a tenant who damages your property, repeatedly fails to pay rent, or leaves your property without notice. But what can you do when a tenant breaks their lease early? Today, we’ll discuss the importance of a strong lease agreement, when a lease is considered broken, and what to do when a tenant breaks their lease early.
Contents of This Article:
- The Importance of a Strong Lease Agreement
- When Is a Lease Considered Broken?
- What to Do When a Tenant Breaks Their Lease
- Create Strong Lease Agreements With PPM
The Importance of a Strong Lease Agreement
Property managers in Northern Virginia know that a thorough, solid lease agreement is one of the most important parts of the rental process. Your lease is a legally binding document that outlines a landlord’s and a tenant’s rights and responsibilities regarding the property they’re renting. A well-crafted rental agreement clearly explains the rules for living in a rental property and outlines important points such as:
- Rent and security deposit amount
- The due date for rent each month
- Who’s responsible for certain repairs and maintenance tasks
- What’s allowed and not allowed inside the rental property
- Who to contact if you have a maintenance emergency
- What happens if any parts of the lease are broken
Ultimately, a solid rental agreement ensures a transparent, straightforward guide for tenants on how to treat your property and what happens if they don’t.
When Is a Lease Considered Broken?
What exactly does it mean when a tenant breaks their lease early? Generally, it means that a tenant has stopped paying rent or moved out of the property without notice. However, it could mean several things. After all, there’s usually more than one way a tenant could break their lease. For instance, they may have stopped paying rent, damaged the property, or moved out without notice. Each of these scenarios means that the tenant has broken the lease.
Can a Tenant Legally Break Their Lease Early?
There are only a few scenarios where a tenant can legally break their lease early with no penalty.
- Health or Safety Code Violations- Landlords are required to maintain their properties to meet health and safety standards. If your rental does not comply with these regulations, tenants may have the right to terminate their lease early.
- Landlord Harassment or Privacy Violations- Tenants who experience harassment, threats, or violations of their privacy by the landlord are legally allowed to break their lease and vacate the rental property.
- Active Military Duty- Under the Servicemembers Civil Relief Act, tenants called to active duty can legally terminate their lease without penalty. However, they must provide at least 30 days’ notice, and the deployment must last longer than 90 days.
- Domestic Violence or Abuse- Tenants who are survivors of domestic violence or sexual abuse can terminate their lease immediately without penalties. However, they may be required to provide written notice before leaving the property.
What to Do When a Tenant Breaks Their Lease
There are several reasons why a tenant may break their lease. That said, the amount of notice they give you and the condition in which they leave the property are major factors in your next steps. Here are some steps you’ll want to take if a tenant breaks their lease early.
- Review the Lease Agreement
- Communicate With Your Tenant
- Keep Detailed Records
- Inspect the Rental Property
- Consider Possible Solutions
- Take Legal Action if Necessary
Review the Lease Agreement
The first thing you’ll want to do if you suspect a tenant has broken their lease agreement is review the contract. Thoroughly review your lease terms to better understand the tenant’s obligations. Look for any clauses regarding early termination, penalties for breaking the lease early, or a required notice period. This can help you determine your next steps and whether you need to take legal action.
Communicate With Your Tenant
To clear up any misunderstandings, reach out to your tenant to discuss why they broke their lease. Open communication with your tenant can help you clarify their reasoning and may lead to a mutually beneficial resolution, like finding a new tenant or paying an early termination fee.
Keep Detailed Records
It’s important to document all interactions with the tenant, including emails, phone calls, and text messages. Additionally, you’ll want to have documentation of any financial losses or damages. This can help if you have to take legal action later on.
Inspect the Rental Property
Once the tenant officially leaves the property, you’ll want to inspect for any damages beyond normal wear and tear. You should have a move-out checklist to go off of to compare the current condition with the move-in inspection report.
Consider Possible Solutions
You may be able to come to an agreement with your tenant that benefits both of you. Here are some potential options.
- Allow Subletting- While it may be risky, you could consider allowing the tenant to sublet the property until the lease agreement is up.
- Early Termination Fee- You could negotiate a mutual agreement for early lease termination, which may involve the tenant paying a fee or forfeiting their security deposit.
- Find a New Tenant- You could task the tenant with finding a replacement tenant who meets your criteria and is willing to take over the lease.
Take Legal Action if Necessary
If the tenant owes unpaid rent or significantly damaged your property, you may need to pursue legal action. You’ll want to find an attorney to work with to ensure you follow local laws and handle the situation properly.
Create Strong Lease Agreements With PPM
If you want to avoid situations where a tenant breaks their lease early, it starts with having a strong lease agreement. That way, you stay protected when it comes to lost rental income or damaged property.
Need help with your rental process? Professional Property Management of Northern Virginia can help! Our team of professionals can help create a comprehensive lease agreement for your property and so much more! Contact PPM today to learn more about how we can help your rental business succeed!