A Guide to Early Lease Termination for HOA Landlords

So, your tenant wants to break their lease early*. They signed a legal document that binds them to the terms, including to pay rent through the move-out date you, the landlord, specified. However, as much as the lease protects the landlord, there are laws in place to protect tenants when they want out. As a property owner, you must know how to handle these situations to communicate clearly and fairly, follow legal protocol, and, ultimately, meet your bottom line. The following article provides assistance with different circumstances related to early lease termination, however, a lawyer should always be advised for legal matters.

What Does it Mean to Break a Lease?

Breaking a lease can be complex and challenging for tenants and landlords. Understanding the basics of breaking a lease is essential to facilitate a smooth transition and avoid any legal consequences. A lease agreement is a binding contract between the tenant and the landlord, outlining the terms and conditions of the rental period. When a tenant decides to break the lease before its expiration, there are several factors you need to consider, such as the lease term, rental obligations, termination fees, and valid reasons for termination. This article will provide an overview of the basics of breaking a lease, including the procedure, potential penalties, and legal obligations for both parties involved.

Why Does a Tenant Terminate Their Lease Early?

Tenants want to break their leases for many reasons— personal, professional, or because the landlord breached the lease. Depending on the reason, the landlord might be legally bound to release the tenant without damages (as long as the tenant follows protocol). In other situations, it makes sense to be compassionate and work with the tenant to find a solution.

Military Deployment

Suppose a call comes in for your tenant to go off for military service or active duty. In that case, the Servicemembers Civil Relief Act allows those in the armed forces, the National Guard, the National Oceanic and Atmospheric Administration (NOAA), and the U.S. Public Health Service the right to break their leases to start active duty or if their orders take them far away (50 miles is the accepted minimum distance). However, the tenant must give you a 30-day notice, effective 30 days after the date the following rent payment is due. Therefore, a soldier could give you proper notice of their military duty on July 17 but still be responsible for paying August's rent. After 8/31, though, the obligation ends. 

Domestic Violence

Florida does not currently have a binding law that allows survivors of domestic violence, sexual assault, stalking, or unlawful harassment to break a lease and move if necessary. However, if your tenant sends an early termination of lease letter with this as the reason, consult your state laws to see your obligations. Even though Florida doesn't protect victims, forcing your tenant to stay in an unsafe situation is not advisable. 

Job Loss

It makes sense to be compassionate here. If your tenant can no longer supply the income that would allow them to pay rent, it doesn't make sense for them to continue living in your rental. At this point in their lives, they wouldn't have been able to pass the screening criteria you set forth when you rented the unit to them. Allowing them out of the lease agreement is much less time-consuming, arduous, and expensive than pursuing an eviction or involving a debt collector. Work with your tenant(s) to find a solution for both of you. 

Divorce or Chronic Illness

A divorce or serious illness can severely impact your renters' finances. Even though you're not legally obligated to release your tenants from a lease in these extenuating situations, giving your tenant(s) an out makes a challenging situation a little easier for all parties involved. For example, when a couple in your unit decides to split, rental payments could become a significant source of contention. Similarly, if a tenant shares with you that they have to vacate because of a death in the family (either a co-tenant or a relative) or a severe illness, it's advisable to be compassionate.

Job Transfer

Your tenants don't have control over their job transfers, and some state laws allow tenants to break their lease for this reason. 

Uninhabitability

A landlord must provide tenants with a safe and habitable place. That means working gas, heating, electric, and plumbing systems; operational sinks, toilets, and showers; non-leaking roofs and walls; freedom from health hazards and pests; etc. Suppose the unit is not livable or you're unresponsive when a safety issue arises. In that case, your tenants are legally allowed to break the lease and walk away without covering your damages for loss of rent. After all, you're not holding up your end of the bargain. 

Intrusiveness

Though you own the property, you don't have the right to enter it as you please. It would help to give your tenants a minimum 24-hour notice for entry unless there's an emergency. Tenants have the right to privacy; if you violate that, the tenant may break the lease. However, tenants must first give you a formal written warning to stop coming over unannounced. Rarely may tenants break the lease without a written notice on the books.

If the tenant found a place they prefer, is moving in with their partner, plans to buy a home, or is relocating out of town, the landlord needs to be on the hook to release them early. 

Be prepared for your tenant to present false charges, citing habitability or intrusiveness, if they want to get out of paying you and the issue escalates to court. Keep maintenance records and photographs to show you maintained the unit well and made repairs quickly.

Understanding the Rights and Responsibilities of Landlords

Getting a handle on what landlords can and should do is crucial when dealing with early lease terminations. Landlords have certain legal rights, like ensuring tenants follow the lease, pay rent on time, and keep the property in good shape. If tenants break the lease, landlords can take legal action following state eviction rules.

At the same time, landlords must care for their tenants and follow local housing laws, such as keeping the place in good repair, following health and safety rules, and providing what's promised in the lease. 

Landlords must also respect their tenants' privacy and treat everyone fairly, as outlined by the Fair Housing Act and local fair housing laws. 

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Striking the right balance between these rights and duties is essential in handling lease terminations fairly and professionally. By understanding these aspects, landlords can navigate such situations smoothly, maintaining good relationships and avoiding legal troubles. For more information, contact Condominium Associates today! Stay tuned for a follow up article about getting a new tenant when a lease is broken.

**Early lease terminations are a legally sensitive issue. The guide above provides general advice, but speak with a legal professional to know your rights and the specific legal options available.