How to Cancel a Lease Agreement
Read your lease agreement carefully., Clarify any confusing terms with your landlord., Provide notice as required., Pay the fees to buyout the remainder of the lease., Leave the property in good condition.
Step-by-Step Guide
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Step 1: 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. -
Step 2: 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. , 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., 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., 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. -
Step 3: Provide notice as required.
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Step 4: Pay the fees to buyout the remainder of the lease.
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Step 5: Leave the property in good condition.
Detailed Guide
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.
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. , 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., 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., 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.
About the Author
Jeffrey Adams
Writer and educator with a focus on practical organization knowledge.
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