Tenant Wants to Break Lease

Tenant Wants to Break Lease

New to Real Estate · Bryn Mawr · Member since 2023 · 19 posts · 25 votes

Hi everyone! My tenant essentially gave me a two week notice that they plan to break our lease. They are moving for their job, acknowledged they are not giving me much notice, and asked if there’s an opportunity for them to cut the lease short. They were very understanding that I have the right to enforce payment of the outstanding rent (8 months). I don’t want to be a jerk and make them pay everything that they owe, but I don’t want to be a pushover either

I’ve been given the advice that they should pay the rent until I can get another tenant in their place. The issue with that is I don’t currently have the time to place another tenant. I’ve strategically aligned my leases to expire when my life is less busy and I am in the thick of it for the next several months. I’d greatly appreciate any additional advice or recommendations on the situation. Thank you!

3Reply
284 views

Most Popular Reply

Naperville, IL · Member since 2018 · 330 posts · 357 votes
8mo

You have a legal obligation (Called "duty to mitigate damages")  to try to find a new tenant, no matter how busy you are.  You cannot just collect for the next 8 months from the tenant who is leaving. You don't have to lower your standards, but you do have to actively advertise and show the property.

See this reply in the discussion

15 Replies

Jump to latestLatest
  • Naperville, IL · Member since 2018 · 330 posts · 357 votes
    8mo

    You have a legal obligation (Called "duty to mitigate damages")  to try to find a new tenant, no matter how busy you are.  You cannot just collect for the next 8 months from the tenant who is leaving. You don't have to lower your standards, but you do have to actively advertise and show the property.

  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    8mo

    @AJ P., I agree with @Nancy P.. I am in PA and in my state the landlord is obligated to make a good faith effort to fill that vacancy. 

    So, if you aren't able to fill it, what you could do is offer the tenant a flat fee where they agree to pay maybe 2 months rent in exchange for amicably terminating the lease. If you both agree that should be an easy clean way to end things. 

    That is a fair solution and if you don't want to make time to place a tenant, the unit can sit vacant a while by your choice. Keep in mind you could end up in that same situation in other circumstances like an eviction. So, it sounds like you planned up front to have the unit sit vacant at times when you weren't prepared to do the tenant placement work. 

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    8mo

    Get a new tenant in ASAP.  If you don't have time, hire someone to do it.  Despite the best plans, not everything happens when you want it to.  Often things like this happen at the worst possible time.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    8mo

    We offer this type of tenant two options. Option 1, they pay an early termination fee (one month plus the deposit assuming there's no real damages) and they walk away clean, we take utilities back over, a clean break. Option 2, we try to rerent as soon as they're out and we have the place ready again and they pay rent and utilities until it's rerented. I have never had a tenant take Option 2. 

    If a good tenant is within a month or two of the end of the lease anyway and it's the renting season we typically just let them go free and clear, if they leave the place in good shape. 

    Skyline Properties
    View Page
  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8mo

    A month plus security deposit is MORE than fair to you. It’s more than you’d collect if they decided to just leave. (Imagine having to be legally obligated to find a new tenant ASAP, while trying to track them down in a new city/state, Then suing them for that 1 or MAYBE 2 months you MIGHT be able to convince a judge it took you. BEFORE you return their security deposit.)  I sincerely doubt if they left and didn’t offer to pay any rent you’d let the property sit empty for 8 months until you weren’t “busy”. If you truly would, then hire a PM tomorrow morning. If you wouldn’t then your argument wouldn’t hold water in court. You’re costing yourself thousands by operating your rental around your schedule. Hire the PM, it will be cheaper and easier. Good luck. 

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    8mo

    @AJ P.

    Here is the early termination clause in my lease each tenant signs. You have to make sure you are in compliance with your state, county and or city laws. This clause alleviates the discussion how to handle when a tenant wants to end the lease early. I’ve seen early terminate clauses go from one month to 3 months.

    Early Termination Option - Tenant has the option of terminating this Lease prior to the Ending Date specified above on page 1. A fee equivalent of two month’s rent is required in advance. To exercise the Early Termination Option. Tenant must deliver to Landlord (1) a written notice 45 days in advance of the termination clause stating that Tenant has elected to exercise the Early Termination Option and identifying the date of such early termination (“Early Termination Date”), and (2) all Rent and additional Rent due through the Early Termination Date. When Landlord acknowledges receiving the written notice and payment from Tenant, the Termination Date of this Lease shall be deemed amended to be the Early Termination Date. The Early Termination Date must be a date within the parameters of this Lease. The Early Termination Option may be exercised only if Tenant is not in default under the Lease at the time that Tenant gives notice of the exercise of the Early Termination Option. All remaining Lease terms will remain in full force and effect. If Tenant provides the notice unaccompanied by the required payments, the Early Termination Date will not be changed, and any such written notice from Tenant shall be deemed null and void. If Tenant does not properly exercise the Early Termination Option by following the procedure exactly as specified above, or Tenant elects not to exercise the Early Termination Option, but vacates the Premises before the Termination Date, all Lease terms shall remain binding (including the original Termination Date), and Landlord will retain all legal remedies for a Tenant breach of this Lease. If Landlord is aware that Tenant has vacated the Premises before the Termination Date, Landlord has an obligation to try to re-rent the Premises to minimize lost Rent for which Tenant shall be responsible.

  • Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    8mo

    It's all a personal choice. People see it and do it differently. I have routinely had leases broken because I evict many times. In that case, I would just let them roll out with no repercussions. For you, this is a prime example o if you are going to manage these properties, you have to be all in. You cannot be successful if there are only a few points and times you can devote to your business. This is a business with multiple moving parts, and anything can happen at any time. If you cannot do this, you may need a property manager. 

  • New to Real Estate · Bryn Mawr · Member since 2023 · 19 posts · 25 votes
    8mo

    Hi everyone, thanks for all the responses and information. I understand what I need to do moving forward. Thank you!

  • Rental Property Investor · Perry Hall, MD · Member since 2016 · 588 posts · 599 votes
    8mo
    Quote from @AJ P.:

    Hi everyone! My tenant essentially gave me a two week notice that they plan to break our lease. They are moving for their job, acknowledged they are not giving me much notice, and asked if there’s an opportunity for them to cut the lease short. They were very understanding that I have the right to enforce payment of the outstanding rent (8 months). I don’t want to be a jerk and make them pay everything that they owe, but I don’t want to be a pushover either

    I’ve been given the advice that they should pay the rent until I can get another tenant in their place. The issue with that is I don’t currently have the time to place another tenant. I’ve strategically aligned my leases to expire when my life is less busy and I am in the thick of it for the next several months. I’d greatly appreciate any additional advice or recommendations on the situation. Thank you!


    Not what you asked but tenant placement is a time consuming and frustrating activity that I am happy to outsource. I'd consider hiring someone even if you're not busy.

  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    8mo
    Quote from @AJ P.:

    Hi everyone! My tenant essentially gave me a two week notice that they plan to break our lease. They are moving for their job, acknowledged they are not giving me much notice, and asked if there’s an opportunity for them to cut the lease short. They were very understanding that I have the right to enforce payment of the outstanding rent (8 months). I don’t want to be a jerk and make them pay everything that they owe, but I don’t want to be a pushover either

    I’ve been given the advice that they should pay the rent until I can get another tenant in their place. The issue with that is I don’t currently have the time to place another tenant. I’ve strategically aligned my leases to expire when my life is less busy and I am in the thick of it for the next several months. I’d greatly appreciate any additional advice or recommendations on the situation. Thank you!


     Most states have laws requiring an owner to make a "Good Faith" attempt to release a property when a tenant breaks their lease.

    You could charge the tenant a one month "Early Termination Fee" to cover the cost of hiring an agent or PMC to find you a tenant.

    Logical Property Management4.9454 Reviews
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 663 posts · 474 votes
    8mo

    You’re thinking about this the right way. This is less about being a jerk vs. a pushover and more about setting clear, fair boundaries.

    A few key points to consider:

    1. Check your state law first

    Most states require landlords to mitigate damages, meaning you must make a reasonable effort to re-rent the unit. You usually cannot just collect 8 months automatically without attempting to replace the tenant.

    2. “Pay until re-rented” is common, but with structure

    What many landlords do in this situation:

    Tenant pays rent until a new tenant is placed or

    Tenant pays an early termination fee (often 1–2 months’ rent) in exchange for a clean break

    This gives you compensation for the inconvenience without dragging things out.

    3. Your time constraint is real, but document effort

    Even if you’re busy, you should still:

    List the unit

    Respond to inquiries

    Document that you attempted to re-rent

    You don’t have to bend over backward, but you should be able to show you made a reasonable effort if challenged.

    4. A practical compromise

    Given they’re being upfront and cooperative, a common middle ground is:

    30–60 days rent after move-out

    Forfeit of the security deposit

    Written agreement releasing both parties once paid

    This avoids collections, bad blood, and months of uncertainty.

    5. Avoid informal agreements

    Whatever you decide, put it in writing:

    Move-out date

    Amount owed

    Whether the lease is fully terminated

    Condition expectations

    No handshake deals.

    You don’t need to enforce all 8 months to be “right,” but you also shouldn’t absorb the loss alone. A defined termination fee or short continuation of rent is usually the cleanest solution for both sides.

    For the future, adding a clear early termination clause to your leases will make these situations much easier to handle.

  • Realtor · Chicago, IL · Member since 2020 · 17 posts · 34 votes
    8mo

    I manage a my portfolio of 25 units in Chicago and have this happen about once a year. It seems like it's inevitable. It's just part of being a landlord so feeling like it's a burden should not be the case. I start by letting them know they are responsible for paying until a new tenant is found and encourage them to find a tenant that meets our leasing requirements to sublease. I let them know I will also attempt to search but I can't guarantee anything which gives them more encentive to search themselves. I also let them know they are responsible for any subleasing fees such as commissions should the tenant come with an agent and they have to be paid. With this narrative, they often work to search for a tenant themselves. Hope this helps! 

  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    8mo
    Aj - that’s generally approach. Some states/landlords have a two month lease breakage fee which is common. I think I’d stick with them paying until a tenant is found. I have not yet have yet had this situation happen but I was close with one of my residents this year.
  • Rental Property Investor · Denver, CO · Member since 2024 · 60 posts · 10 votes
    8mo

    If the tenant will cooperate with showings, and your unit shows well, you can lease remotely pretty easily.  

    I just leased a townhome in one day after taking about fifteen inquiries.  I used keyless access with smart locks, software and online listing platforms.  

    Rents might be higher now with the new tenant, if there is a silver lining.  Not the best time of year to lease if you're in a winter climate, so it could take longer. 

    I would make the next lease an 18 month + lease so that you're ending in the busier season with more options and higher demand. 

  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    7mo

    Here's what worked when I had this exact situation - I offered them a deal: pay 2-3 months upfront to break lease clean, OR pay monthly until I fill it but they help with showings (giving access, keeping it clean). Most pick the lump sum because they want certainty. Either way you're not the bad guy and you're covered. What's your gut telling you about this tenant - are they generally reliable?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.