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What Should I Do If My Tenant Breaks Their Lease?

What to Do When a Tenant Breaks a Lease Early: A Guide for Landlords

Breaking a lease early isn’t always ideal—but it’s a reality landlords often face. While most tenants who rent single-family homes sign long-term lease agreements, life can be unpredictable. Job relocations, military duty, buying a home, or changes in family status can lead to a tenant needing to move out early.

As a landlord, having a plan in place and knowing how to handle early lease termination legally and professionally can save you time, money, and stress.


Understand the Legal Requirements for Lease Termination

A lease is a legally binding agreement. Both you and your tenant have rights and responsibilities under state landlord-tenant laws and applicable federal regulations.

Most states require:

  • That landlords maintain habitable living conditions.

  • Proper notice before entering the property.

  • Compliance with privacy and safety standards.

Tenants may have legal grounds to break the lease if:

  • The property becomes uninhabitable.

  • They’re called to active military duty (per the Servicemembers Civil Relief Act).

  • They are victims of domestic violence.

  • The landlord violates entry or privacy laws.

Failing to follow these legal standards could allow a tenant to break the lease without penalty—and possibly take legal action.


Include an Early Lease Termination Clause

A smart way to prepare for unexpected situations is by including an early lease termination clause in your rental agreement. While not mandatory, this clause outlines the process a tenant must follow to legally end their lease early.

A well-written termination clause typically includes:

  • Required notice period (often 30 days).

  • An early termination fee (usually one month’s rent).

  • Steps for written notice and documentation.

This protects both parties and helps prevent disputes or confusion during the lease-break process.


What to Do After a Tenant Breaks a Lease

When a tenant breaks a lease early, professionalism matters. Here’s how to handle the situation effectively:

1. Communicate and Document Everything

Initiate a conversation with your tenant to understand their situation. Keep communication respectful and professional. Always document:

  • Notices given

  • Conversations had

  • Payments made or missed

Send a written reminder of the lease terms and consequences of breaking them. Use certified mail to create a legal record of your efforts.

2. Inspect the Property

Schedule a walk-through before the tenant vacates. This allows you to:

  • Assess for damage or needed repairs

  • Identify deductions from the security deposit

  • Start preparing for the next tenant

3. Handle Security Deposits Correctly

Calculate any unpaid rent, damages, or cleaning fees. Deduct them from the security deposit per your lease and state laws. Provide an itemized list with any refund due within the legal time frame.

4. Attempt to Re-Rent the Property

In most states, landlords are required to mitigate financial loss by attempting to re-rent the property quickly. Advertise the unit, show it to prospective tenants, and keep records of your efforts.

5. Take Legal Action If Necessary

If the tenant owes unpaid rent or damages that exceed the deposit, you may need to file a civil lawsuit. Be prepared to show that you followed the law and made every effort to resolve the matter.


Consider Professional Property Management Services

Managing lease breaks, legal compliance, and tenant relationships can be complex. Hiring a professional property manager ensures everything is handled correctly and efficiently.

At Real Property Management Luxury, we work on your behalf to:

  • Maintain strong tenant communication

  • Navigate early lease terminations

  • Protect your investment

  • Ensure full legal compliance

If you’re a landlord in Richmond, TX or the surrounding areas, contact us today at 346-275-3115 or reach out online to learn more about our property management services.


Serving Military Families and Property Owners

Are you an active-duty service member, veteran, or military homeowner with a rental property? We understand the unique challenges of military life, including frequent relocations and the need for flexible, trustworthy housing solutions.

Whether you’re looking to rent out your home while stationed elsewhere or find a reliable long-term rental near base, Real Property Management Luxury is here to help. We’re proud to support military families and offer professional, compassionate service tailored to your needs.

Contact us today to learn how we can assist with your military housing or property management goals.

 

Originally Published on April 1, 2022

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