3 Possible Consequences of Breaking a Lease

In a legal sense, there aren’t many instances in which a tenant can break their lease without penalty.

For example, active military deployment, written notice and confirmation, and cases of disability or extreme illness are the few situations in which it would be ok. For those who do not find themselves in these positions, odds are that breaking your lease will come with some short and long term consequences.

It Will Damage Your Credit Score

Early on in life, your credit score is everything—a low credit score will stop you from making any major purchases such as a house or car. Similarly, landlords will check your credit score as well to determine if it is a risk to enter into a lease with you. As such, when you break a lease, the landlord will notify the credit reporting agencies who will, in turn, lower your score. This will make it harder for you to borrow in the future.

You Could Get Sued

A lease is a legally binding contract between the renter and the landlord. If you decide you want to move out before the contract is up, the landlord could take you to court. The lease acts as proof that you are liable to pay the rent for the full term of the lease, whether you live there or not. It’s best to talk with the landlord and try to find a solution before things end up in front of a judge, as the odds of winning are very slim.

There Could be Penalties

Chances are there will be penalties for breaking your lease. Renting space to someone is a business venture—people do it to make money. If you are breaking the lease, then the landlord isn’t making money anymore. As such, a landlord could hold onto your security deposit or request month’s rent; this is in an effort to get back some of their lost revenue. Be sure to check the details of the lease to see what it says about fines.

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