Can You Get Out of a Lease Before it Starts?

Can You Get Out of a Lease Before it Starts?

A lease is a contract. As soon as both parties (you and the landlord) sign it, you are typically bound by its terms—even if the official “start date” or move-in date has not yet arrived. The fact that the lease term has not yet begun usually does not make the lease any less enforceable.

Signing = Legally binding commitment: Generally, once signed, the landlord may have the right to hold you responsible for rent payments until the end of the agreed term, even if you never move in.

Even so, it may be possible to get out of a lease before it starts in some specific cases. Here is some general information that may help determine whether you can get out of a lease before it starts.

Read the Early Termination or Cancellation Clauses

Some lease agreements include “early termination” or “cancellation” clauses that outline the process and penalties for ending the lease prior to its natural expiration.

• Fixed fees or penalties:
  The lease might require you to pay an early termination fee (often one or two months’ rent).
• Required notice:
  You might need to provide written notice within a specific timeframe.
• Subletting or assignment options:
  Some leases allow subletting, meaning you could find a replacement tenant, with the landlord’s approval, to take over your responsibilities.

Review your signed lease closely to see if it has these provisions, and follow any specified steps or requirements.

Communicate With the Landlord as Soon as Possible

If you need to back out of a lease before it begins, open communication is crucial. Landlords often prefer finding a new tenant over the hassle and cost of enforcing a lease that’s already on shaky ground.

• Explain your situation:
  Honesty about your inability to proceed might encourage the landlord to release you from the lease or negotiate a solution.
• Offer to help find a new tenant:
  This could show good faith and minimize the landlord’s financial loss.
• Get any agreement in writing:
  If you and the landlord reach a compromise (for example, you pay a certain fee to terminate), put it in writing to protect everyone’s interests.

Consider State and Local Laws

Each state (and sometimes municipality) has its own laws governing landlord-tenant relationships. Some states have specific rules about a landlord’s duty to “mitigate damages,” meaning they must make reasonable efforts to re-rent the property once a tenant breaks a lease. If the landlord can find a new tenant quickly, your financial liability might be reduced.

Research or consult an attorney: Understanding how your state handles this issue will help protect your rights and minimize financial consequences.

Potential Consequences of Breaking a Lease

If you simply walk away without trying to negotiate or follow the lease terms, you could face serious repercussions:

1. Financial Liability:
   • You could be on the hook for unpaid rent up until the unit is re-rented or until the end of the lease term, depending on your state’s laws on mitigating damages.
2. Legal Action:
   • The landlord might file a lawsuit or send the matter to collections if you owe back rent or fees.
3. Credit Damage:
   • A legal judgment or collection account can negatively affect your credit score.
4. Difficulty Renting in the Future:
   • Future landlords often request rental history and may reject applicants who have broken a lease in the past.

Negotiating a Potential Settlement

If you cannot avoid breaking the lease, try to negotiate with the landlord to minimize the financial impact:

1. Offer a Lump Sum Payment:
   • In some cases, paying a few months’ rent upfront might satisfy the landlord and allow you to exit the lease.
2. Sublease to a New Tenant:
   • If your lease allows, find someone to sublease the property until the official end date.
   • Make sure to follow any screening or approval procedures your landlord requires.
3. Mutual Termination Agreement:
   • Draft a simple, signed agreement indicating that both you and the landlord agree to terminate the lease early. This document should outline any fees you owe, the date you’re released from responsibility, etc.

Key Takeaways

• Early termination clauses can allow a legal exit but often involve fees or other obligations.
• Communication and negotiation with the landlord can prevent or reduce legal and financial consequences.
• Knowing your state and local laws—and getting legal advice if needed—will help you navigate your options responsibly.
• Don’t walk away without checking if the landlord can find a replacement tenant or if you can mitigate damages.

Final Thoughts

It’s not impossible to get out of a lease before it starts, but it can be complicated and expensive if you ignore it until the last minute. Your best course of action is to (1) check for any cancellation or termination clauses in your lease, (2) communicate openly with your landlord, and (3) review local laws or consult a lawyer if there is confusion about your obligations.