As a landlord, not every one of your responsibilities is easy. Breaking your lease may be one of the more difficult ones, and it can be hard to know when doing so is appropriate or permitted. Here’s a quick guide to get you started.
Tenant Rights During Lease Termination
Can a landlord break a lease for any reason? In most cases, the answer is no—landlord-tenant laws usually protect tenants by limiting why and when landlords can terminate a lease. But closely abiding by state and local laws, communicating clearly and professionally, and keeping detailed records, can protect you from a lawsuit. Tenants can contest or object to:
- Harassment or discrimination
- Failing to keep the property habitable and safe
- Insufficient time to fix an issue
- Handling improperly or damaging their personal property
Including clauses in your lease can protect you from some of these, but should the situation escalate to court, make sure you have a record of every communication between you and your tenant.
How Does Terminating a Lease Work?
So, how can a landlord break a lease legally? Depending on where you are and whether you have cause, state and local laws surrounding the termination of a lease differ. Do thorough research on your area before making any decisions. We’ll use Ohio’s laws as a brief example:
Lease Termination with Cause (not paying rent, etc.)
Terminating a lease with cause refers to a tenant violation. When doing so, you must:
- Provide written notice of the lease’s end with proper notice
- Deliver notice in the preferred method outlined in the lease
- Outline reasons for terminating the lease early
- Give 3 days to pay or quit for rent demands (sent by certified mail) (ORC § 1923.04)
- Give 30 days to cure or quit for a lease violation (ORC § 5321.11)
- Give 3 days to quit for unconditional notice to quit (usually in cases of illegal activity) (ORC § 5321.17(C)).
Lease Termination Without Cause (selling the property, etc.)
Terminating a lease without cause refers to a situation in which neither party has violated the lease. When doing so, you must:
- Provide written notice of the lease’s end with proper notice
- Week-to-week tenancy requires seven days, month-to-month tenancy requires 30 days
- Deliver notice in the preferred method outlined in the lease
- Outline reasons for terminating the lease early
When Can a Landlord Break a Lease?
What constitutes a valid reason differs depending on where you are (so be sure to investigate your state and local laws), but here are a few generally accepted reasons to terminate a lease:
Nonpayment
We’ll begin with one of the more obvious reasons: Nonpayment of rent. Following reminders, if a tenant continues to habitually not pay rent—or pay it late—you may have grounds for lease termination—and eventually, eviction. By not paying, they violate the terms of your lease that they agreed to when they signed.
Lease Violations
If a tenant has unreported roommates or pets that do not abide by your lease agreement, you may also have grounds for lease termination. As mentioned, terminating a lease is not just a quick fix—it can be a costly process—so it’s best to have a conversation with your tenants first about their violations before resorting to an eviction.
Important Note: Some areas have laws that require a “cure” period in which the tenant has the opportunity to fix the lease violation before an eviction is in order. Be sure to check out your local laws!
Selling Your Property
If you decide to sell your property, it may be difficult to transfer tenants if you and the property owner have different plans for the space. In these instances, you may need to break the lease early.
Including a clause in your lease outlining what would happen should the property be sold can help avoid confusion and legal trouble. Some landlords also include in leases that they’ll give reasonable notice (around 30 to 60 days in advance) to their tenants if they need to move out before the sale. This can help give tenants peace of mind in addition to keeping you both accountable.
It’s best to be transparent with your tenants as early as possible about the fact that you plan on selling your property, but depending on the situation, you may not have an option.
Nonrenewal of a Future Lease
If a lease term has not yet begun but you, for whatever extenuating circumstance, must end it, you do have options. You may be selling the property, renovating, repairing, or wanting to live in it longer.
You should meet with your tenant and explain the situation to them. If you can come to an agreement in writing that you’re breaking the lease, then great! If not, you may have to either go through with the tenancy as planned or look into getting a lawyer involved.
Renovations and Repairs
Making improvements on units that already have tenants living in them is great, albeit a bit inconvenient for both parties. If a project gets derailed and takes longer than intended, you’ll want to talk with your tenant about finding another place to stay if theirs is uninhabitable.
If repairs or renovations take prolonged periods of time, terminating the lease (even temporarily) may be best for both you and your tenants.
Moving Forward
We hope that as you navigate the world of early lease termination, you find this advice helpful. Remember that breaking a lease early should be your last resort, but if you have no other choice, check your state and local laws or seek legal counsel before beginning the process.
