A lease agreement deserves respect as a lawfully enforceable contract. Whatever the lease’s terms, you’re legally obligated to maintain the apartment’s occupancy and make timely rental payments. In the event that something comes up and you wish to terminate the lease early, think carefully.
In fact, breaking your lease should be the final resort, and in most instances, it shouldn’t be an option. Beware that the repercussions of breaking a lease could be more bothersome than you anticipate.
You’d better scrutinize the circumstance thoroughly before you decide to skip out on the agreement. Here’s a list of repercussions you can expect when you violate your lease.
It Could Affect Your Credit Score
Most property owners won’t be able to report directly to a reporting agency concerning the violated lease. However, they can file a suit in a claims court for contract violation. This could lead to a civil judgment, which is a debt and emerges as a negative strike on your report.
Civil judgments remain on your report for seven years from the filing date and will damage your credit history for some time. A landlord might also opt to employ a collection agency to recover the debt and the collection amount will emerge on your credit history and remain there from the time the account was sent to collections.
Liquidated Damage
Numerous leases comprise a clause on the liquidated damage that specifies the predetermined amount you’ll owe the property owner in the event that you violate the lease. The fee will probably comprise the entire security deposit and might include extra charges for advertising for new renters and conducting maintenance on the rental.
Signing a lease implies that you’ve agreed to pay the liquidated damages in case of violation. This means that you owe the landlord this money legally and he could sue you if you skip out without paying.
Difficulty Securing a New Rental
Once you break a lease, don’t expect to rent a new unit easily. Your new landlord or property manager might need rental references or might evaluate your credit report. Any negative information, including a violation of contract, could cause potential landlords to reject your application.
Even if you lie or try to rent before the terminated agreement emerges on your credit report, the landlord might establish the truth later, and it could influence your capacity to remain in the unit.
Cover Rental Payments After Moving Out
The worst-case scenario for lease violation is that you’ll need to pay rent for the remaining duration once you move out. The property owner will need to go to court and win the case first. However, if you violate the contract without good cause, you’ll be in debt. That implies double rental payments if you reside elsewhere.
Even if you’re not renting another apartment, paying rent for a unit where you aren’t actually living isn’t fun. The property owner must demonstrate reasonable endeavors to rent the unit in an attempt to mitigate the damages.
However, if it’s not possible to rent the unit for one reason or another, you must cover the rent as agreed in your lease. This amount could add up if several months are remaining on your agreement at the time of the violation.
Final Thoughts
Violating your lease is serious and while legal and ethical reasons might justify your actions, circumstances are few and you must explore other alternatives first.
For more information on violating a lease agreement, contact us at Apartment Agents or leave a message.