A fixed-term tenancy agreement is a binding contract. When you sign a 12-month lease, you are legally obligated to pay rent for the entire year, whether you live in the property or not. However, life is unpredictable—a sudden job relocation, a family emergency, or a change in financial circumstances can make it necessary to move before the lease term is up. Breaking a lease can have serious financial and legal consequences, but there are several options and strategies you can explore to mitigate the damage.
If your lease does not have a buy-out clause, your next step should be to speak with your landlord directly and honestly. Explain your situation and try to come to a mutual agreement. Some landlords may be willing to let you out of the lease, especially if you have been a good tenant and the rental market is strong, meaning they can find a new tenant quickly. It is crucial to get any mutual agreement in writing and signed by both you and the landlord to make it legally enforceable.
In most jurisdictions, even if you break the lease, the landlord has a legal duty of “mitigation of damages.” This means they cannot simply let the property sit empty for the remainder of your lease term and sue you for all the remaining rent. They must make a reasonable effort to re-rent the property to a new, qualified tenant. Once a new tenant is found, your responsibility to pay rent ends. You would only be liable for the rent during the period the property was vacant, plus any advertising costs the landlord incurred to find the new tenant. You can help this process along by offering to help find a replacement tenant yourself, a process known as subletting or assigning the lease.
- A sublet means you find a new tenant who pays rent to you, and you in turn pay the landlord. You are still ultimately responsible for the lease.
- An assignment is a cleaner break where you find a new tenant who is approved by the landlord and signs a new lease, taking over your obligations entirely.
Finally, in certain specific circumstances, you may have the legal right to break a lease without penalty. These situations are rare and highly regulated but can include being called for active military duty, being a victim of domestic violence, or if the property becomes legally uninhabitable due to the landlord’s failure to make essential repairs.