The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
One attractive aspect of renting vs. owning a home is the lack of a long-term commitment. While it may seem that renters can pick up and go at the drop of the hat, there are still usually agreements in place. You may not be able to sneak away from a lease in the middle of the night without consequences, but there are steps you can take to minimize the penalty of leaving your rental agreement early. You’ll also want to be aware of any potential impact on your credit.
Before you get started on the process, it’s a good idea to look over your lease and see what exactly you have legal responsibility for if you leave the rental earlier than planned. You also might want to get familiar with the tenant laws in your state and city. If your landlord hasn’t kept up his or her end of the bargain, you might be able to leave without incurring any issues. In fact, there may be clauses in the contract for your specific situation. Once you know exactly where you stand on paper, you are equipped to talk with your landlord and (hopefully) negotiate a deal.
An eviction and any subsequent judgments a landlord can get against you for unpaid rent can have serious credit consequences. If you’ve broken a lease and were sued by your landlord, it will appear on your credit reports. You can get free annual credit reports from each of the major credit reporting agencies to see if your credit has been affected by breaking a lease. Also, you can get two of your credit scores every month at Credit.com to see where you stand.
Usually it’s a good idea not to treat this like a secret — keeping your landlord in the loop can benefit both of you. They may not be happy you are packing up early, but you can explain your situation and work together to make the best of it. The more notice you give, the more time they have to try to replace you and the longer you have to persuade them not to charge you any fees.
Landlords charge penalties for breaking rental agreements because it interrupts their income and means more work for them. Advertising properties, checking credit scores and completing paperwork all take time and money. Instead of paying the rent yourself while the apartment stays vacant, it can be a good idea to scope out a replacement tenant on your own —whether this person will take over the remainder of your lease or sign a new one.
Since you are the one breaking an agreement, it can be a good idea to take responsibility and be active in resolving the situation. By offering up solutions or just making it easy for your landlord to rent out the place again (like being accommodating with showings) you can put yourself in a stronger position.
Image: iStock
March 11, 2021
Personal Finance
March 1, 2021
Personal Finance
February 18, 2021
Personal Finance