When Can a Landlord Break a Lease Agreement?

The Big Picture On Whether Landlords Can Break a Lease Agreement or Not:

In most states, landlords must provide 30-90 days’ notice before terminating a lease at the end of its term.
Landlords generally cannot break a fixed-term lease mid-term without cause, but can terminate month-to-month agreements with proper notice.
Major renovations or emergency repairs may allow landlords to end a lease early, but rules vary by jurisdiction.

In most cases, landlords cannot break a lease agreement mid-term. 

For that matter, tenants aren’t allowed to do so either, even if they often get away with it. It’s hard to chase down tenants and actually collect money for early move-out. 

Here’s what landlords need to know about breaking lease agreements midway through the lease term.

 

Month-to-Month vs. Term Leases

First and foremost, either party can terminate a month-to-month rental agreement at any time, with proper notice to the other party. In most states, that means a minimum of 30 days’ notice before move-out. 

If you sign a fixed-term lease agreement, however, such as a standard one-year lease, you can’t break it halfway through just because you feel like it. In nearly all cases, you must wait until the end of the lease term approaches before sending a termination notice. 

The notice period varies by state law in those cases, but it is usually between 30 and 90 days’ advance warning. You must send written notice to the other party of your intention to terminate the lease within that period of time.

Note that in a few extremely tenant-friendly states, landlords have no choice but to renew tenants’ lease agreements even when the term ends unless the tenant provides “just cause.”

Some tenant activists managed to rebrand non-renewals as “no cause evictions,” a misnomer but an effective political tactic to shove through legislation. (Word to the wise: don’t invest in these states!)

 

Early Lease Termination Clauses

Can a landlord break a lease? While it’s generally not allowed, there are some exceptions. For one, writing an early termination clause into the lease agreement.

It still typically requires advance written notice, such as 30 or 60 days, and tenants might hesitate at the clause when they review the lease contract. 

If there’s a chance you might want to break a lease agreement early, sign a month-to-month lease rather than hassle with the early termination of a term lease. Even with an early termination clause, tenant-friendly judges may not look kindly on it if the tenant objects in court. 

Sale of the Property

Can a landlord break a lease when selling the property? Generally, the answer is no.

To be specific, landlords can sell their property whenever they want. However, lease contracts survive the sale, meaning they transfer with the property, and the new owner must honor them. 

It should not bother you as a landlord. Many real estate investors specifically look to buy properties with existing tenants. It makes for the ultimate turnkey property investing!

However, note that many states, like Massachusetts, require landlords to offer tenants the Right of First Refusal (ROFR). This means you must offer to sell the rental unit to your tenants for its market value before listing it for sale publicly. 

Legal rights aside, if you’re considering selling a rental property with tenants, do what you can to keep the tenants happy. They can help smooth the sale or turn off prospective buyers at every opportunity. 

Tenants have rights that affect the sale of the property. Some of these include:

24-hour notice before any showings
The right to be present during showings
Security deposit returns 

The last part means you must transfer the tenant’s security deposit to the new property owner at settlement. 

If you’re hoping to sell the property to homebuyers and want the tenants to move out before you market it, send a non-renewal notice when the end of the lease term approaches. Some tenants are messy, dirty, or simply jerks and make a terrible impression on prospective buyers.

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Renovations & Repairs

Now, what if the property needs significant renovations or repairs in the middle of the current lease term?

For planned renovations, wait until the next lease renewal and send advance notice for nonrenewal within the appropriate period. You can make planned upgrades after the tenant moves out.

However, if an emergency arises and the property needs substantial repairs, the tenant may need to move out mid-lease. The rules here vary by state and local landlord-tenant laws. In tenant-friendly jurisdictions, you might need to pay for the tenant’s accommodations for a certain period of time.

When possible, do the repairs while the tenant continues to live in the rental unit.

 

Landlord Move-In

Can a landlord break a lease if he decides to move in? Well, just because you own the property doesn’t mean you can kick out your tenants and move in at any time. 

You’ll need to honor the lease agreement you signed. As the end of the lease term approaches, you can serve them with a notice of termination and remind them they must move out at the end of it, but you can’t evict them mid-lease without cause. 

In those extremely tenant-friendly states that require “just cause” to non-renew lease agreements, landlord move-in does constitute “just cause.” However, if you managed to non-renew the lease agreement, you must typically live in the property as your primary residence for at least three years afterward. 

 

Can a Landlord Break A Lease Due to Tenant Violations?

What if your tenants breach the rules of the rental agreement?

In that case, you begin the eviction process by serving your erstwhile tenants with an eviction notice specific to your state. After giving them the state-mandated waiting period, you can then file in court for eviction if they still haven’t cured the violation. 

Note that lease violations don’t end with non-payment of rent. Other violations could include unauthorized occupants, unauthorized pets, property damage, cleanliness or noise violations, or any other breach of your lease agreement. 

Unless you specifically included early lease termination clauses in your contract, unpaid rent or other lease violations are typically the only instances where a landlord can break a lease agreement.

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Cash for Keys

It might stick in your craw, but you can pay tenants to leave early if you really want them out. 

Known as “cash for keys,” you offer the tenants a lump sum payment for them to move out and leave the property in excellent condition. Your cash-for-keys offer should be contingent on them moving out by a certain date and leaving the rental property sparkling. Walk through the property with the tenants after moving out to ensure they left it in perfect shape, and only pay them after verifying. 

However, if the tenant does not agree to the offer, you must accept their decision. It’s illegal to try and force or harass the tenant out of their home. This reinforces the fact that the answer to the question of whether a landlord can break a lease or not is not a simple yes or no.

Bonus Tip: Despite the name “cash for keys,” pay them with a check or online transfer to keep a paper trail — can’t be too careful. 

 

The Role of Rent Control

Expect tenants, activist attorneys, and judges to scrutinize your every move in areas with rent control. 

Do not try to break a lease agreement early. It’s hard enough to non-renew tenants in rent-controlled areas and have them move out even when the lease term ends. 

Therefore, be squeaky clean to avoid lawsuits and other legal headaches in rent-controlled units. 

 

Can Tenants Break a Lease Agreement?

I know I mentioned earlier that both parties — landlords and tenants — generally can’t break the lease agreement. However, there are always a few legal exceptions, especially from the tenant’s end.

When The Property Has Safety Concerns

Serious safety concerns in a rental property can justify a tenant breaking their lease — they can be exposed wires, mold taking over, structural issues that compromise the building’s integrity, etc.

As the landlord, you have a legal duty to keep your rental property livable — install smoke detectors that work, locks that actually lock, and breathable air. Tenants who discover these awful conditions can document the issues and promptly notify you, the landlord.

After you provide reasonable repair time, typically 30 days in most jurisdictions, the tenant may have grounds to terminate their lease without penalty if the problems remain unaddressed.

Some states even let renters bolt immediately if things are really dicey.

When The Tenant is A Victim of Domestic Abuse 

Victims of domestic abuse often have legal protections allowing them to break their lease without penalty. 

Many states have put laws in place to help, like California’s Civil Code § 1946.7, which gives early exit rights to survivors of domestic violence, sexual assault, or stalking.

The process usually involves giving the landlord a heads-up in writing, typically 30 days before moving out, along with some proof like a restraining order or police report. Some places only allow this for recent incidents, usually within the last 3-6 months.

You can ask for evidence, though you must keep everything confidential for the safety of your tenant; otherwise, prepare for legal consequences.

 

If The Landlord is Illegally Renting Out The Property

Of course, renting out a property illegally can be grounds for tenants to terminate their lease. Illegal rentals often include basement apartments without proper egress, units lacking required permits, or properties violating zoning laws.

Tenants discovering their rental is illegal may be entitled to break their lease without penalty. Local housing authorities can investigate suspected illegal rentals, sometimes resulting in fines for landlords or forced evictions to comply with regulations.

Landlords caught renting illegally can face consequences beyond a broken lease. They might face civil penalties or, in extreme cases, even criminal charges. 

If The Tenant Is In Active Military Duty

Active military service members have unique protections under the Servicemembers Civil Relief Act (SCRA), which means they can terminate lease agreements earlier—without penalty—if their duty requires it. 

For example, if the military personnel received orders for a permanent change of station or deployment lasting 90 days or more, they can exercise this right. 

That said, tenants must still provide written notice to their landlord at least 30 days before the intended termination date, along with a copy of their military orders. You may ask for proof of deployment but can NEVER deny the lease termination if you provide proper documentation.

The SCRA applies to all 50 states and territories to ensure consistent protection for service members nationwide. Under certain circumstances, the family members of deployed service members may be covered, such as when relocating for the military member’s service.

 

Concluding Remarks: Can a Landlord Break a Lease?

If you aren’t sure how long you want to rent out your unit, sign a month-to-month tenancy agreement rather than a full-term lease. Or, if you insist on a term lease, write in an early termination clause listing the procedures and circumstances under which you can terminate the lease mid-term. 

Always keep copies of all communications with your tenants because you never know when they might challenge you in court.

 

Have you ever tried to break a lease agreement mid-term? What happened?

 

 

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