Breaking a lease in PA

Rental Property Investor · Harriman, NY · Member since 2015 · 28 posts · 15 votes

A friend of mine is renting an apartment in Philadelphia. She is relocating to NY for a new job but is in a lease that lasts until June. She told me she is on the hook for 5 months and they also will be keeping her security if she wants to terminate the lease. What is Pennsylvania’s laws regarding this? Thanks.

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Gregory H.

Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes

It's called mitigating losses, and its basic contract law, which applies country-wide, regardless of state ... especially in residential. They have to market the unit for rent. Your friend would be on the hook for any costs related to re-renting the unit, and would also be on the hook for the rent for the time it takes to find another tenant. Any professional landlord would know this, so either her landlord is an idiot, or they're just assuming she won't question anything since they don't want to go through the effort of leasing in the winter. Also, if they tell her that she is on the hook and they're keeping her security deposit ... what incentive does she have to cooperate at all?

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Amy KendallBusiness Member
Real Estate Broker · Lehi, UT · Member since 2016 · 397 posts · 318 votes
7y
Try working something out with the landlord. I have the same situation with one of my rentals right now. I have a tenant that has a signed lease until the summer, which I did on purpose because January is not a good month to have a vacancy. I don't want to hold up my tenant, but I also don't want to be vacant for a few months either. I told them that I am happy to list the property and if I am able to find a new tenant, then I have no problem letting them out of their lease early. If your friend can help solve the landlord's problem, then I would hope the landlord would be willing to return the favor.
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Katie Stewart
Specialist · Fort Collins, CO · Member since 2018 · 557 posts · 191 votes
7y
As Amy said, I would have her speak with the landlord about what her options are. Can she sublease? That could be an option potentially.
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Gregory H.
Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes
7y
It's called mitigating losses, and its basic contract law, which applies country-wide, regardless of state ... especially in residential. They have to market the unit for rent. Your friend would be on the hook for any costs related to re-renting the unit, and would also be on the hook for the rent for the time it takes to find another tenant. Any professional landlord would know this, so either her landlord is an idiot, or they're just assuming she won't question anything since they don't want to go through the effort of leasing in the winter. Also, if they tell her that she is on the hook and they're keeping her security deposit ... what incentive does she have to cooperate at all?
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Bradley Miller the correct answer is what @Gregory H. shared. The landlord is obligated to make a "good faith efffort" to find a replacement tenant. The current tenant continues paying rent until the new tenant takes over. At that point, the lease is terminated and the Landlord should terminate the lease and refund the security deposit minus any cleaning and repairs. They have no right to keep the security deposit unless the written agreement explicitly states that. Even then, it may be a violation of state law.
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Bradley Miller
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Rental Property Investor · Harriman, NY · Member since 2015 · 28 posts · 15 votes
7y
Thank you for the responses folks I appreciate the help.
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