Thursday, September 15, 2011

Moving Apartments - Breaking a Lease Before You Move

Getting to Know Your Lease and Rental Agreement

By Diane Schmidt, About.com Guide
Before you read any further, note that the following information on breaking a lease before you move, is for guidance only; if you're concerned about the impact of breaking a lease, you should consult a professional such as a contract lawyer or tenant advocacy agency in your area.

Tips for Breaking a Lease Before You Move

Read and know your contract. It's important that you know your lease, including any stipulations about notification of moving and whether or not you can sublet your apartment. Every lease should have a release clause, which will include your responsibilities. Such responsibilities that are most common are number of weeks notice, penalties for not meeting this time requirement and state of apartment upon leaving. Usually, landlords require a least 30 days notice with some stating 60 days. Know your rules before deciding how to proceed.
Read local state and city laws. If your lease does not include a release clause, then you should consult the local laws for tenant notification of moving. Where I live, the law is 30 days if the lease does not state otherwise.
Make a decision after knowing the penalties. Most penalties for breaking a lease include one or two months' rent, which in some cities can be quite costly. Make sure you know what you might face financially before deciding to go forward. Also, remember that you will probably need a reference from your landlord if you're planning on renting another home; breaking a lease, unless you do it amicably, might make it more difficult to rent in future.
Notify your landlord. If you're planning on breaking the lease, make sure you tell your landlord as soon as possible. If you have a good relationship with him or her, you might find it easy to negotiate a penalty outside of the lease agreement. I had to break a lease once because of a family emergency, and once I explained to the landlord why and that I would help find a new tenant, he waived the penalty fee which was equivalent to one month's rent. Honesty is usually the best policy.
Check if subletting is an option. Some residences do not allow subletting while others are open to it. Again, check your lease. If your lease allows subletting, consider it as an option, in particular if the landlord is not willing to negotiate with you. Subletting itself can be difficult, time-consuming and it means that you're still tied to the current property. It can, however, save you money. If your lease does not allow subletting, speak to your landlord to see if it's an option; part of the negotiation could include landlord approval of the person subletting. Again, with subletting, you're still responsible for the rent up until the end of the sublet period.
Don't stop paying rent. If you just stop paying rent this will not only harm your credit rating, but will make it difficult to rent another residence. Remember, if you do this, you've breached your contract, a legal document, which means the landlord can seek legal action.
Consult a professional. As stated earlier, if you're in doubt or have tried all other options, including negotiating with your landlord, consult a professional. Most cities have non-profit agencies that deal with tenant/landlord issues or tenant rights' organizations. You can start there. The next step is to consult with a real estate lawyer or contract lawyer; this can be costly unless you do so through a non-profit agency, but it can save you money in the long run.