Early Lease Termination

At Real Property Management, we understand that circumstances may arise requiring you to move out before your lease term ends. While our goal is to provide clear guidelines for these situations, early termination comes with responsibilities outlined in your lease agreement. Here’s an overview of what happens when a lease is terminated early.

Commitment to the Full Lease Term

Your lease is a legal agreement for a set duration, and it’s important to honor this commitment. If you decide to leave before the lease ends, the lease outlines specific consequences, including financial responsibilities.

Early Termination Scenarios

1. Leaving Before the Lease Ends

   If you move out before your lease term ends, you will be responsible for paying liquidated damages, depending on the time left on your lease:

   • 181 Days or More Remaining on your Lease

     You’ll pay 50% of the total lease liability (total rent, charges, and fees due through the end of the lease).

   • 91 to 180 Days Remaining on your Lease

     You’ll pay an amount equal to three months of total lease liability (e.g., if your monthly charges are $1,000, you’ll owe $3,000).

   • 90 Days or Less Remaining on your Lease

     You’ll pay 100% of the remaining lease liability (all remaining rent, charges, and fees due through the lease end).

     These liquidated damages help cover the costs associated with re-letting the property and other losses resulting from the early termination.

2. Abandonment

   If you leave the property without notice for 15 days or more, this is considered abandonment. The lease may then be terminated, and you will still owe liquidated damages and other fees.

3. Notice Requirement

   Even if you terminate early, you are required to provide 60 days’ written notice of your intent to vacate. Rent and fees will continue to accrue during this notice period.

   Example: If you give notice on December 3 with a move-out date of February 2, you owe all charges through February 2 plus liquidated damages.

4. Failure to Provide Notice

   If abandonment occurs without proper notice, you will be responsible for paying rent and other charges for 60 days from the abandonment date, in addition to liquidated damages.

Why Are Liquidated Damages Charged?

Liquidated damages are designed to compensate for the financial impact of ending the lease early. This includes the costs of finding a new tenant, potential vacancy losses, and administrative expenses.

Key Responsibilities for Early Termination

• Give Notice: Provide a written 60-day notice, even if you plan to terminate early.
• Pay Rent and Fees: You remain responsible for rent and other charges through the notice period or until the lease’s natural end.
• Understand Your Liability: Be prepared to pay liquidated damages based on the time remaining on your lease.

Need Help?

We’re here to answer your questions. If you’re considering early termination or have any concerns about your lease, contact our office for assistance.