When a lease is signed, you and your tenant agree to uphold your respective parts of the rental agreement. Sometimes, however, a tenant's circumstances change during the course of the lease — and this year in particular, more renters may consider moving before their lease is up due to unexpected job losses, the desire for extra space, or remote work opportunities that allow them to live and work from any location. 

Should a tenant break the lease early, it's important to understand the consequences outlined in the lease, as well as the tenant's reasons for breaking it. And given the challenges of this year, it’s also important to stay as flexible and empathetic as possible.

Here are steps to help you deal with a situation where a tenant breaks a lease.

Note: This guide is for informational purposes only. Zillow, Inc. does not make any guarantees about the sufficiency of the information in or linked to from this guide, or that it’s compliant with current, applicable or local laws. Landlord-tenant laws change rapidly and may be regulated at the federal, state and local levels. This resource is not a substitute for the advice or service of an attorney; you should not rely on this resource for any purpose without consulting with a licensed attorney in your jurisdiction.

Know your rights and responsibilities as a landlord

A tenant breaking a lease early might put you in a tight spot, but you can always seek legal advice. Local attorneys know the ins and outs of the landlord laws in your area and can help you determine the right course of action. Be sure that you and the tenant read through your lease agreement carefully. Landlords and tenants alike can miss details in the fine print, and it's in your best interest to be fully informed about your lease as well as local laws.

Review the lease with your tenant

Ensure new tenants know that a lease agreement is legally binding before they sign it. With Zillow Rental Manager, you can create a free, customizable online lease (in select locations) and review and sign it with your tenant. Many tenants know they're responsible for the entire lease term, but some could assume there's flexibility. Reasons for breaking a lease early typically do not include:

• Loud neighbors
• Accepting a new job in another area
• Inconvenient parking
• Moving in with a partner

Understand the reasons for breaking a lease

This year, plans have shifted for many of us. People across the country have grappled with unexpected job losses, illness and loss due to COVID-19, and changing needs for space. Keep this in mind, and approach a lease break with as much flexibility as possible while staying mindful of your own financial circumstances. A little understanding can go a long way — and can help you respond to the situation appropriately.

Some places allow tenants to terminate a lease without penalty under certain circumstances. Knowing these circumstances can help you understand the correct action to take should your tenant ask to cut their lease short. Legal reasons to break a lease in some areas may include:

Breaking a lease for military duty

Under the Servicemembers Civil Relief Act, a military service member who receives orders to move or deploy may be allowed to break the lease. Typically, service members may be required to provide a landlord with 30 days’ notice in writing and a copy of their military orders. Many states and cities have their own regulations for military service members. If you are unsure of the laws in your area, consult a local attorney.   

Breaking a lease because of unlivable conditions

In some areas, if you have neglected to make needed repairs or otherwise failed to provide a safe and livable property, your tenant may have a good cause for breaking their lease. Check local and state laws and consider speaking with a local attorney. You may also be required to pay moving expenses.

Breaking a lease because of domestic violence

Some states may allow victims of domestic violence to break a lease without penalty by providing the landlord a written notice. Check your local and state laws and consult a local attorney if you want to learn more about the rights of victims of domestic violence.

Breaking a month-to-month lease

If your tenant has month-to-month or at-will tenancy, the amount of notice a tenant is required to provide you before breaking the lease will be subject to local law. Be sure to consult a local attorney to learn more about month-to-month leases in your area. 

Breaking a lease due to loss of wages

If a tenant has lost their job or income due to circumstances beyond their control, some jurisdictions require landlords to work with tenants and make certain accommodations, such as agreeing to a payment plan, based on state or local laws.

In addition, due to the COVID-19 pandemic, there may be federal, state and/or local laws that temporarily limit or prohibit landlords from evicting a tenant for nonpayment of rent. Be sure to stay current on any landlord-tenant laws for your state, city or town, and speak with a local attorney if you have any questions.

Include terms for breaking a lease

Some leases include an early termination clause  which outlines what is to occur if the renter ends the lease early. You can decide whether to include such a clause. If you don’t, consider clearly outlining the consequences for breaking a lease in the lease agreement. These could include:

• Allowing the renter to find a subletter (if you choose)
• Forfeiting the security deposit
• Paying the rent balance for the remaining months

Subleasing clause

The renter may want to find someone to finish out the lease as a sublet. There are pros and cons to subleasing. Consider a subleasing clause that requires the landlord’s written permission before a renter can hand over the property to someone else. It is a good way to allow for a tenant to leave a lease early and ensure that you still have a reliable renter. 

It's also possible they'll find a replacement renter. If all goes well, you'll sign a new lease with the new renter — a win-win all around.

Cost to break a lease

A lease typically spells out the financial consequences for a renter leaving early, as permitted by your local laws and regulations. 

At least one month's rent is the typical minimum for breaking a lease. In some cases, the tenant may be required to pay the remaining rent for the rest of the term. Be sure that you understand the terms of any lease agreement you are entering into, and if you are unsure as to any specifics consult a local attorney. 

For example: If four months are left on a lease, the lease agreement could require the departing tenant to pay rent for those months or for as long as the property remains vacant.

But many places require you to find a new tenant in a reasonable amount of time, rather than purposely leaving a property open to collect rent from the vacating party. If you are unsure as to whether you are expected to mitigate damages, consult a local attorney. 

Require your tenant to give notice in writing

Regardless of whether a tenant has a good reason for breaking a lease, ask them to provide a written request to terminate early, detailing their reasons for leaving. Explain to your tenant the course of action for ending the lease early as required by your rental agreement.

It's wise for every landlord to consult a local lawyer to become familiar with any local lease requirements and landlord-tenant laws so they can be prepared if their renter breaks a lease.

Read more articles and tips on being a landlord at our  Rental Resource Center.