How to Cancel a Lease Agreement

Using a Buyout Clause

Read your lease agreement carefully. When you signed your lease, you may not have read every clause closely, but if you want to cancel the agreement you should go back and see if it contains information about terminating the lease early. Often these clauses require you to pay a flat amount as a fee and give notice (typically two months') to your landlord. The fee may be a specific amount, or it may be calculated according to your rent, such as by requiring one month's rent as a fee if you want to break your lease early.

Clarify any confusing terms with your landlord. You want to make sure you understand what you have to do under your lease's buyout clause to prevent your landlord from suing you or claiming you owe more money than you calculated you would. If you ask your landlord about the buyout clause, or any other part of your lease, and she provides you with an interpretation, send a written letter restating that interpretation. If your landlord later tries to sue you and argues that you didn't follow the agreement, you can use that letter as proof that you asked about the term and acted in reliance on your landlord's interpretation. If the clause doesn't specifically address additional amounts such as your security deposit, make sure you talk to your landlord about that so you know whether the deposit remains refundable or must be forfeited if you move out early. Check the portion of your lease agreement relating to the security deposit as well, as it may include details about what happens to the money if you cancel the lease early.

Provide notice as required. If your buyout clause contains a requirement that you notify the landlord in advance, make sure you do so as soon as possible. If you have a genuine emergency situation outside of your control, it may not be possible to give the notice required by the clause. In that case, make sure you provide notice as soon as you know and explain the situation. Typically your landlord will be understanding, especially if it's a true emergency such as a death in the family or an involuntary job transfer.

Pay the fees to buyout the remainder of the lease. Typically a buyout clause will require the payment of a certain amount such as two months' rent if you want to leave early. Legally, the fee can't exceed your landlord's financial loss incurred as a result of your early termination. For example, your landlord loses money every day that an apartment sits vacant. However, if she rents your apartment two days after you move out, she may be required to refund you all or part of the fees you paid to cancel the lease agreement.

Leave the property in good condition. Even if the buyout clause requires you to forfeit your security deposit, clean and repair as necessary to avoid getting hit with additional charges. In some cases, forfeiture of the security deposit may be treated as a fee rather than a deposit against damages, as it would have been if you left when the lease ended. If this is the case, the landlord may charge you for additional damages that went beyond ordinary wear and tear. You may need to use this landlord as a reference in the future, so treating the property with respect, especially if you have to break your lease, will help you stay on good terms.

Negotiating Early Termination

Check your state's law. Some states have laws that permit tenants to terminate their lease early in certain circumstances. In all states you can terminate your lease early if you are a member of the military called to duty. Some states also allow for early termination in other circumstances such as job relocation or health problems. You also have the right to terminate a lease early without owing any further payments if your lease includes an illegal clause. For example, a clause in your lease allowing the landlord to charge you rent every two weeks instead of every month because you made a late payment or violated some other rule in your lease would be illegal. Typically, however, your landlord must act – or at least attempt to act – on the illegal clause before you can break the lease yourself. If the landlord doesn't act on the illegal provision, then you are the one who breached the contract first (by moving out before the lease ended). Most states also allow you to cancel a lease agreement if you are a domestic violence survivor and need to find new housing after a dispute.

Talk to your landlord. Even if there's no clause in your lease that specifically addresses early termination, you and your landlord can mutually agree to cancel your lease agreement at any time, and for any reason. Make a specific appointment to sit down and talk with your landlord, rather than just dropping by unannounced. When you arrive at the appointment, be courteous and respectful. Stick to the facts as much as possible when you're explaining the reasons you need to move out early. If you have any documents that prove the necessity of you leaving by a certain date, such as a transfer notice from work, make a copies for your landlord and bring them with you to your meeting. Try to plan your meeting as soon as possible, especially if circumstances prevent you giving very much notice to your landlord of your intent to vacate. Your landlord may be more accommodating if you demonstrate that you did everything in your power to let them know about the situation as soon as you could, rather than knowing you were going to move out for two months and not saying anything until a week before you wanted to leave.

Offer to surrender your security deposit. Particularly if you paid a sizable deposit when you moved in, your landlord might be more amenable to canceling the lease if you're willing to forfeit any claim to the money. Although ideally you would want your security deposit returned if you left your apartment in good condition, the additional money may help win your landlord's agreement to cancel the lease. If you do make this offer, make sure you leave the unit clean and undamaged when you move out. Don't use the fact that you're not getting your security deposit back anyway as an excuse to trash the place – your landlord may sue you for additional damages. Make sure the security deposit money is treated separately in the written termination agreement, including whether you will be on the hook for any damages to the apartment.

Assist in finding a new tenant. Since the landlord has to find someone to take your place if you leave early, it might help if you have a friend who's willing and able to move in to the apartment. Most states have laws requiring landlords to take reasonable steps to rent the property again if you vacate early, which means if you had a lot of time left on your lease you typically wouldn't have to pay the entire remainder in full. However, you may be liable for your landlord's costs of advertising the unit. If you know of someone looking for a new place to live, you might be able to put them in touch with your landlord. If they end up working out as a replacement, your landlord will appreciate the time and effort you've saved him. If your lease allows it, you may also be able to sub-lease your apartment to someone else for the remainder of your lease. Check your lease to see if you have permission, and follow any requirements. For example, landlords who allow tenants to sub-lease may require the new resident to sign an agreement with them or to meet the same standards they've set for original tenants. Keep in mind, however, that finding a replacement tenant may be preferable to sub-leasing, even if your lease allows it. If you sub-lease your apartment, you remain responsible for the unit – including any damages done by the new tenant.

Get any agreement in writing. If you have a written lease, any agreement to cancel that lease also must be in writing and signed by both you and your landlord, or it won't be legally valid. If you and your landlord agree to terminate your lease early for whatever reason, your landlord may have a standard termination agreement that she uses. If your landlord is using a form, make sure all the clauses apply to your situation. If there's anything in her agreement that you haven't discussed, bring it up. Anything that's crossed out or changed should be initialed by both you and your landlord. Because your original lease is void on the date your termination agreement takes effect, review the termination agreement to see what rights or obligations, if any, were transferred from the original lease. This probably includes clauses such as your obligations to make any repairs of damages beyond normal wear and tear before you move out. Make sure everything you discussed and agreed upon in your negotiations is included in the written termination agreement – don't assume something is part of the deal if it wasn't reduced to writing, and don't rely on your landlord's word. Once you and your landlord have signed the agreement, make a copy and keep it in a safe place in case disputes arise later.

Claiming Constructive Eviction

Research your state's law. Although the basic elements of constructive eviction are the same, each state has different problems that qualify as constructive eviction if not remedied by the landlord, as well as different notice requirements. Examples of constructive eviction include shutting off water or electricity, or refusing to repair a leaky roof that causes damage inside the unit. The problem must be so great that it causes a substantial interference with your use of the property – it can't just be an inconvenience. For example, if your central heating system is broken in July, that probably wouldn't constitute constructive eviction. If the heating system was broken in January, however, and there's snow on the ground outside, that may be considered constructive eviction if the landlord doesn't fix the heat within a reasonable period of time. Generally, your unit must be uninhabitable, creating a situation in which you have been deprived of full use of the property. The legal theory behind constructive eviction is that since the landlord hasn't provided you with a habitable dwelling, you are no longer obligated to pay rent.

Consider hiring an attorney. Because constructive eviction can be difficult to prove, and typically is raised as a defense after your landlord sues you, an attorney can help make sure your rights are protected and you don't have to pay more money than you should. If you move out without a pre-existing agreement to cancel the lease agreement, your landlord has the right to sue you for damages. When you are sued, you can claim constructive eviction as an affirmative defense. However, keep in mind that you must prove all aspects of an affirmative defense. States also differ on whether you have a duty to make any repairs yourself prior to moving out. Constructive eviction is considered an extreme remedy, and often the problem must be something that you had no ability to alleviate yourself.

Notify your landlord of the problem. To claim constructive eviction, you must provide written notice to your landlord of the problem you're having and indicate that if the problem isn't resolved you plan to claim constructive eviction. Even if you've already told your landlord repeatedly about the problem, written notice is essential to claiming constructive eviction. This also entails being able to prove that your landlord received your letter. For this reason you should consider mailing it using certified mail so you have proof that it was received, rather than simply sending an email or leaving a letter in the office's mail slot.

Give the landlord time to fix the problem. You must allow a reasonable period of time for the landlord to diagnose the problem and make the necessary repairs. Consider talking to an expert if you're unsure what a reasonable period of time would be. Some major problems such as a gas leak could take several days to remedy, while other issues should be repaired within a couple of days. How long is considered reasonable also depends on what the problem is and the circumstances surrounding the problem. For example, if you're renting an apartment in Michigan and the heat goes out in February, your landlord must take steps immediately. However, if the heat goes out in June, the need is not quite as urgent.

Document evidence. Since it's up to you to prove constructive eviction in court, you must provide objective evidence of the problem you were having as well as your efforts to have the landlord fix it. You might also consider having a state or county inspector come and look at your unit and file a report. If the unit doesn't meet the health and safety standards established by your state, the inspector will start procedures for assessing those violations. Take photos of the damage as it progresses, and make sure a date is attached to those photos. For example, if your ceiling and walls are damaged by a leaky roof, take photos showing the water stains on the walls and ceiling. If the problem gets worse because your landlord hasn't taken steps to repair it, take additional photos showing the progression.

Vacate the property. If your landlord hasn't fixed the problem within a reasonable period of time, you should leave immediately. To claim constructive eviction, you must actually leave the property because of the If your landlord later sues you for breaking your lease, you can raise the defense of constructive eviction. Generally, if a court agrees with you that you were constructively evicted, you have no further liability for payments under the lease. You may even be able to claim additional damages for any losses you incurred as a result of the constructive eviction. However, keep in mind that if you move out on a constructive eviction theory, and a court later determines there was no constructive eviction, you'll be on the hook for any rent due from the date you moved out.