Breaking A Lease On A Rental Agreement

Breaking A Lease On A Rental Agreement
06-20-08

Most rental agreements have a section regarding the renter breaking the lease agreement. You should make sure you understand these contract terms so you can make an informed decision in case you ever need to break your lease.

Understand The Terms
A rental agreement is a legally binding document and should be treated as such. Always read it very carefully and make sure you understand the terms and provisions before signing it. This is especially important as it relates to terms regarding the breaking of a lease. Although you may have no intention of breaking the lease at the time you sign the agreement, something could happen unexpectedly that might require it and it's good to know what your options are.

Rental agreements typically allow the renter to break the lease but not without some form of penalty. This penalty usually comes in the form of requiring the renter to give a specified amount of notice before the contract is up and also requires the renter to pay a sum of money in order to break the rental agreement. A notice of 30 days and a fee equal to one month's rent are common penalties, but this could be more or less severe, depending on the leasing agent.

Consider The Costs of Breaking The Lease
One of the most common reasons for someone to break a lease is a change in jobs. Perhaps your company is transfering you or perhaps you have been offered your dream job by a firm in another state. Either way, you may need to or want to break your lease. A fee of one month's rent may seem like a steep penalty, but if it's a matter of not losing your job or of letting your dream job get away, it would certainly be worth it. In the case of a job transfer, your company may even reimburse you for the fee.

Timing can be a critical factor. If there is a long amount of time left on your lease and you have to move quickly, it would definitely be worth it to pay the fee as opposed to paying rent in your new home and the old one for the full term of the lease. If you only have a month or two left in your lease and you have some control over when you make the move, it might make more sense to finish out your lease and then leave. It just depends upon your particular set of circumstances.

Regardless of whether or not you ever break your lease, it's always a good idea to understand the terms and provisions of any legal document you sign. Your rental agreement is no exception. Understand the terms and consider the costs. You never know when the unexpected might happen.

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000