Terminating or Ending a Residential Lease

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There are dozens of reasons why you might want to terminate a lease. Maybe you're changing jobs or graduating from college and you need to relocate. Maybe your tenant refuses to get rid of her dog even though you've asked her to do so because the lease has a "no pets" clause.

Often, you have to let the other party know that you want out of the lease beforehand. Also, the type of the lease has an impact on if, when and how it can be terminated early.

The landlord-tenant laws of most states, and the ordinances of many cities, have detailed provisions for terminating or ending a residential lease. So, be sure to check those laws carefully, or consider getting some help from a real estate lawyer before you try to terminate a lease.

Types of Leases & "Notice"

You're likely to come across two basic types of residential leases, even though there are others. They are:

  • Fixed term, or "tenancy for years," which is a lease for a specified period of time, usually 12 months or more, with specific beginning and ending dates
  • Periodic, or "month-to-month," which is a lease for a specific amount of time, and if it's not properly terminated before the end of the term, it automatically renews for the same period of time

These two types of leases are often related. For example, say you sign a lease for 12 months, beginning on January 1, 2009 and ending on December 31, 2009. That's a fixed term lease. In most states, and according the language in many leases, if you remain on the premises after December 31 (called "holding over"), you've created a month-to-month, periodic lease, which renews each month until one of you terminates it.

In most states, the party who wants to terminate a periodic lease must give notice to the party that he or she wants to terminate the lease. Also, notice usually has to be in writing and it must be sent via registered or certified mail, or delivered in person to the landlord.

A fixed term lease expires at the end of its term, and generally no notice is required, unless one party wants to terminate it early. Of course, as stated above, if the tenant holds over after it expires, the notice rules for terminating a periodic lease apply.

Grounds for Termination

A periodic lease can be terminated at anytime by either party, so long as the proper notice is given. A fixed term lease, on the other hand, usually can be terminated early only for a reason.

The most common reason why someone wants to terminate a lease early is because one party breached or violated the lease. For example, the landlord might want to terminate the lease because the tenant:

  • Remained on the premises after not paying the rent
  • Broke a major provision of the lease, such as having a dog or other pet when the lease contained a "no pet" provision
  • Committing illegal acts on the premises, such as selling drugs

Some examples of a landlord's breach of the lease that might cause a tenant to terminate include:

  • Breach of the covenant of quiet enjoyment, which is a promise by the landlord that the tenant will have the exclusive right to use and enjoy the leased premises, in peace. For example, allowing a co-tenant/neighbor to play loud music late at night over your objections and complaints
  • Breach of the warranty of habitability, which is the landlord's responsibility to keep the premises safe, clean and "livable," such as by keeping the premises structurally safe and providing adequate heat and water

Some other things that will, or won't, allow one party to terminate include:

  • A specific event stated in the lease, such as, "this lease will terminate if the premises are destroyed" by fire or natural disaster, for example
  • The bankruptcy of the tenant is not a ground for termination by either party
  • Unless the lease provides otherwise, if the premises are sold, the lease doesn't terminate and the buyer/owner becomes the landlord. This includes foreclosures, where the new owner, usually a bank or mortgage company, becomes the new owner

What Changes?

When a lease is properly terminated, the tenant's rights in the property end, and the tenant is no longer liable for future rent payments, although he or she may be liable for unpaid rent up to the date of termination. Or, if the tenant terminated the lease early without good cause, he or she will likely be liable for some or all of the rent that would have been due and paid to the landlord for the entire term of the lease.

The tenant must surrender the property to the landlord. If the tenant holds the premises after the expiration or in violation of the terms of the lease, the landlord can begin an eviction lawsuit to regain possession of the property. In most states, a landlord can't remove a tenant from the premises without going through the eviction process and getting a court order. In this sense, terminating the lease is the first step of the eviction process.

Questions for Your Attorney

  • My tenant wants to terminate a lease early. Can I let her out of the lease and make his roommate pay the entire rent?
  • My one-year lease has a "subletting" clause, and I need to get out of it early. What can happen if I sublet it and the landlord finds out?
  • My landlord gave me notice of termination of our month-to-month lease, and then he changed the locks on the doors. Can he do that?

Related Resources on Lawyers.comsm
- Contact a Real Estate Lawyer in your area, and read about Selecting a Good Real Estate Lawyer
- Need a form? Access hundreds of Personal Legal Forms, including a Home Purchase Worksheet by State
- Read Tenants' Remedies in Disputes with Landlords and Landlords' Remedies in Disputes with Tenants, or access more Real Estate articles and information
- Legal Dictionary
- Visit the Legal Forums for discussions on Real Estate topics

Related Web Links
- State Real Property Codes & Statutes Websites