Despite the written contract, it’s possible to have early termination lease. It can be done by either the landlord or the tenant. The reason may be various, but it’s crucial that each involved party knows their responsibilities and rights, so the process can go easier.
No one would mind with the termination, provided that each of them understands (and fulfills) their responsibilities. So, before you proceed with it, be sure that you understand it completely.
About Early Termination Lease
The early lease termination form or letter refers to a formal and written request to cancel the existing current lease. This letter can be sent by the tenant or the landlord.
In most cases, however, it’s the tenant who write this letter as they want to be released (and be free) from the contract to various reasons. Financial circumstances are one of the most common reasons for this letter to be created.
In general, the landlord will grant it by releasing the tenant. But he/she may charge the security deposit. Moreover, the rent must also be paid full if the tenant wants to have a formal release.
How to Manage the Early Termination
It all comes down to the relationship between the tenant and the landlord, really. If tenants have good relationship with the landlords, it won’t be such a big of a deal. According to the laws, the landlords still have the right to rent collection until the lease ends, whether the tenant occupies the property or not.
A lease agreement is a formal and legal (financial) commitment for the tenants to pay their rents through the end of the tenancy.
Tenants wanting to leave early better talk and explain their situation to their landlords. If the relationship is positive and the tenants are relocating (or even lose job), the landlords are typically understanding. But proper notice should be given, but tenants should be frank about the whole situation.
Providing the notice is a courteous gesture that landlords can do. In most cases, the landlords can make the earnest efforts when they want to re-rent the apartment or property (which has been vacated early) before trying to re-cover the rent from the previous tenants.
If the landlords have more time to find the replacement tenants, there would be slim chances that the (previous) tenants will be required to pay – for the remaining time periods and months.
- Sublet Request
Not all landlords can be understanding. Some of them may be resisting to the idea of early termination lease. If this is the case, then tenants can request whether they can find a sub-tenant.
This can be done by including a lease addendum allowing the tenant to find someone new (a new tenant) to occupy the rent and then pay the rent. This can be done if subleasing is not allowed or forbidden.
If such a condition happens, the tenant together with the sub-tenant should complete the so-called sublease agreement. The sub-tenant is expected to pay the monthly rent to the tenant, so that the tenant can continue paying it up to the landlord. And it is still done under the same agreement and terms from the original lease.
- A Buy-out Request
This is another negotiation strategy where tenant can find an option of buying out (from the landlord). The landlord would basically accept cash payment and free the tenants from all the liability. This is usually arranged by letting the landlord keeps the security deposit.
- Get Legal Assistance
If the landlord is adamant about keeping the contract and doesn’t allow early termination, the best thing that tenants can do is to find legal help. They can reach out to the local attorney, who can provide suggestion and consultation over the issue.
Once the tenants and landlords agree to the early termination of the lease, don’t forget to make the deal into a writing form. Oral agreement won’t stand in court, in case something comes up and problems arise. After both tenants and landlords agree to the early termination lease, they should sign the agreement, and tenants can move out.
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In short, don’t hesitate to talk things through. Tenants and landlords aren’t enemies, so everything can be discussed so a more convenient solution can be found. The early termination lease shouldn’t be a big issue if both involved parties can sit together and talk it out.