How to Break a Lease: The Dos and Don'ts of Breaking a Lease

A lease is a binding commitment between a landlord and a tenant that lasts for a fixed period of time. Sometimes, one or both parties want an early exit. This can happen when one party doesn't meet the other's expectations or the lease no longer makes practical sense for both.

Ending this contract early is called “breaking” the lease. A tenant or a landlord can break a lease, and occasionally, it's the best thing you can do. However, the way both sides handle it can be the difference between a smooth transition and a legal mess.

Lease-Breaking Dos and Don'ts for Landlords

If you're a property manager or landlord and your tenant wants to break their lease, you want to be strategic about your response. Here are some key dos and don'ts to handle a tenant breaking their lease.

Do Understand Before Acting 

Listen to your tenant's reasons for wanting to break the lease. Ask questions and look into any concerns they have. This information will help you find solutions.

Do Work Together

Initiate cooperation with the tenant to resolve the situation on good terms. Work together to find a replacement tenant or consider renegotiating aspects of the lease.

Do Follow Legal Processes

Document any agreements or transactions between you and the tenant. Ensure you understand your rights and theirs if you need to take action.

Don't Ignore Your Tenant

Respond to your tenant and try to resolve the situation. If they insist on breaking the lease, seek a replacement tenant.

If they communicate their intentions and you ignore them until the lease is up, you may lose your chance of successfully suing for rent due under the lease because of failure in your duty to mitigate damages.

Don't Retaliate 

If your tenant can't or is unwilling to uphold their side of the lease for the full term, your next best option is to help them understand how to manage the break fairly and legally.



Don't obstruct them if they are looking for a legitimate way out. If you have been wronged, follow the law.

Don't Violate Terms

Respect the terms of your lease with the tenant when handling the break. For example, don't demand extra penalties beyond those stated in the agreement if they comply with an early termination clause.

Lease Breaking Dos and Don'ts for Tenants

If you're renting and want to know what happens when you break a lease and how to navigate this situation, these tips will help you.

Do Review the Lease

Check for an early termination clause allowing you to break the lease legally. For example, you may be allowed to leave early if you pay penalties and forgo your security deposit. Others may let you break the lease without these penalties if you give early notice and find a replacement tenant.

Do Communicate Early

The earlier you let your property manager know you want to leave early, the more time they have to find a replacement tenant. Do volunteer to help with this process even if the lease termination clause doesn't require you to. This gives you the best chance to fulfill the early termination clause and leave on good terms with your landlord.

Do Seek Approval 

Formally ask your landlord for permission to break the lease and get a written response. This permission could be conditioned on you fulfilling the early termination clause if there is one, or you could ask your property manager to propose a termination offer that you both sign to exit the lease early in a mutually beneficial way. 

Don't Violate Terms

There are valid reasons to break a lease, but aim to do it through a termination clause, termination offer or another legal exception like a building code violation on the property. If there are early termination provisions, follow them. Never deliberately violate or ignore terms in your lease agreement.

Don't Avoid Communication 

It may feel awkward, but communicating early and honestly is the best way to find a solution your landlord will accept.

Don't Leave Without Notice 

Never move out or stop paying rent without communicating and giving proper notice first. A fly-by-night approach will leave you at odds with your landlord and the law.

Key Legal Concepts in Lease-Breaking Situations

Here are some key concepts that landlords, property managers and tenants need to understand to break a lease legally:

• Duty to mitigate damages: In most states, lessors have a legal duty to mitigate damages. In property rentals, that means landlords may not claim damages from tenants that the landlords could have avoided. For example, unless the lease specifies it as a penalty, a landlord should not sue a tenant for the entire outstanding rental amount for the lease period if they made no effort to find a replacement tenant. 
• Early termination clause: This is part of the lease explaining conditions for both sides to follow to end the renting relationship early.
• Termination offer: This is a formal agreement on conditions to end the lease early if the lease lacks those terms or the landlord and tenant renegotiate.
• Penalties: Landlords can apply reasonable penalties specified in the lease if tenants break the lease agreement — for example, forfeiting their security deposit or two months' rent. How much it costs to break a lease will depend on the penalties in the agreement and how the tenant handled the break.
• Notice of intent to vacate: A tenant should send their property manager a formal letter declaring their intention to move out early. They should send this with ample notice. Sixty days is a good guideline if the lease doesn’t specify a notice period.

Make Renting Easy With American Heritage Property Management

If you own a rental property or plan to start renting one out, the idea of your tenant breaking a lease may cause you anxiety. Perhaps you're in that situation right now, wondering how you'll find the right new tenant. American Heritage Property Management is your full-service property management partner for a seamless renting experience in Pennsylvania and Maryland.

AHPM handles every aspect of property management from beginning to end, including:



• Tenant screening and selection
• Lease preparation
• Property maintenance
• Rent collection
• Eviction

We offer all these services and more throughout Pennsylvania as well as Baltimore, Maryland, and its surrounding areas. Whether you need help finding quality tenants for your property or want a reliable partner to step in and manage an existing tenant relationship so you can sleep easily at night, AHPM is here to help. With over four decades in business and thousands of units under management, we have the experience and expertise to streamline your ownership experience so you can relax and enjoy your earnings.

Likewise, if you're a tenant looking to move into a new rental, AHPM can help you find and apply to rent properties in Pennsylvania and Maryland that fit your needs and budget.

Contact AHPM today for a seamless renting experience.