How Much Does It Cost to Break a Lease?

Last Updated on February 18, 2025
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

Ending a lease agreement early can be complicated and costly. While circumstances sometimes necessitate breaking a lease, tenants should understand the potential financial consequences before terminating a rental contract prematurely.

In this guide, we’ll explain the main factors that determine lease-break fees, outline the costs landlords can charge, summarize tenant rights and protections, and provide tips to potentially reduce expenses when you must end a lease agreement ahead of schedule.

How Much Does It Cost to Break a Lease?

Breaking a lease early on an apartment or home often costs tenants $2,000 – $10,000+ in penalties through early termination fees, forfeited deposits, and ongoing rental and legal costs.

Landlords have several options to recoup their losses from broken leases. Common fees and ongoing costs include:

Early Termination Fee: $500 – $2,000 – The early termination fee spelled out in most lease agreements is usually equivalent to 1-2 months’ rent. For example, if rent was $1,000/month, expect to pay $1,000 – $2,000.

Rent Payment Until Re-rented: $1,000 – $3,000 – In some states, you may be on the hook for rent payments until the unit is re-rented, which can take 1-3 months. At $1,000/month rent, expect to pay an additional $1,000 – $3,000 in rent before the new tenant moves in.

Forfeited Security Deposit: $500 – $2,000 – Landlords often retain part or all of the security deposit, typically equivalent to 1-2 months’ rent, so this cost also commonly ranges $500 – $2,000.

Advertising and Re-rental Fees: $200 – $500 – Costs for the landlord to list and market the unit, screen applicants, process applications, and execute a new lease commonly total $200 – $500.

Legal Fees: $0 – $3,000+ – If formal legal action arises, court costs, eviction fees, and landlord attorney fees can stack up to $1,000 – $3,000+. But this is highly variable case-by-case.

In total, the costs imposed by landlords for breaking a residential lease early often fall in the range of $2,000 – $10,000+, depending on individual circumstances, location, and laws. Take all potential costs into account when deciding whether to break a lease.

According to Landing, the cost to break a lease can vary significantly based on the terms outlined in the rental agreement. Commonly, landlords may charge an early termination fee that typically equals 2 to 4 months’ rent. In some cases, tenants might be required to pay all remaining rent due until a new tenant is found, which could result in substantial costs if several months are left on the lease.

On ConsumerAffairs, it is noted that breaking a lease could cost anywhere from nothing (if justified by a violation on the landlord’s part) to several months’ rent. The site emphasizes that if the tenant breaks the lease due to personal circumstances, they will likely incur significant fees.

The Moving.com article mentions that if a landlord has to re-rent the unit at a lower price, the original tenant may need to cover the difference. For example, if the original rent was $1,000, but a new tenant is found at $900, the original tenant would owe $100 per month until the lease term ends.

Zillow Rental Manager states that breaking a lease typically requires paying at least one month’s rent, but in some cases, tenants may need to pay for all remaining months of their lease if stipulated in their agreement. For instance, if there are four months left on a lease, tenants could be responsible for paying those four months unless they find someone to take over the lease.

Lastly, The Balance reports that tenants usually have to pay an amount equivalent to two months’ rent to terminate their lease early, although this can vary based on individual agreements and state laws.

Why Do Tenants Break Leases Early?

There are several prevalent scenarios that lead renters to break apartment or home leases prematurely before the natural expiration:

• Job relocation – Moving to a new city for a career opportunity is a very common catalyst for breaking a lease. Providing maximum notice and working with your landlord can help reduce fees in many cases.
• Financial hardship – Events like sudden job loss, unmanageable medical bills, family changes, or other unforeseen circumstances can render rent unaffordable, forcing tenants to urgently exit a lease early.
• Unsafe living conditions – Negligence from the landlord leading to unaddressed repairs, pest infestations, mold/asbestos exposure, or other health hazards may legally warrant breaking a lease if basic habitability is compromised.
• Relationship changes – Major life events like divorce, breakups, adding a roommate, death in the family, or new caregiving responsibilities can alter your housing needs enough to require terminating a lease.
• Military orders – Active-duty service members can break any lease without penalty under the Servicemembers Civil Relief Act (SCRA) if deployment or relocation orders are received.

Whatever the justification, most landlords impose fees for early lease termination. Understanding the potential costs allows renters to make fully informed lease break decisions.

How State Laws Affect Breaking a Lease

Landlord-tenant laws vary considerably by state, significantly impacting the costs and procedures for breaking residential and commercial leases early:

• Termination Fee Caps – Some tenant-friendly states like Oregon and Colorado limit early lease termination fees landlords can charge.
• Duty to Mitigate – Many states require landlords to actively re-rent vacant units to minimize financial damages from a broken lease.
• Allowable Exceptions – State laws outline conditions like active military service, domestic violence, or safety issues that legally permit breaking leases without standard penalties.
• Tenant Rights – Strong tenant rights laws in states like California provide greater protections during disputes over broken leases.

Consulting local tenant resources to understand applicable state and city laws is critical for renters seeking to end a lease early.

Reduce Costs When Breaking a Lease

If you must break your lease, these tactics can help minimize owed fees and expenses:

• Negotiate with your landlord – Offer to help find a new tenant or propose a reduced buyout fee to maintain goodwill.
• Sublet your apartment – If permitted, subletting your unit transfers responsibility to a new tenant and avoids lease break penalties.
• Review for early termination clauses – Some leases include predefined lower-cost exit options like buyout fees or shortened notices.
• Use legal loopholes strategically – Documented landlord breaches or uninhabitable conditions may provide lawful grounds for lease termination without standard penalties.
• Line up future housing carefully – Overlapping two rents simultaneously hurts tenants financially. Time the transition wisely.

Avoiding costly legal disputes starts with upfront negotiation, understanding rights, and taking strategic steps to reduce lease break ramifications.

Action Steps When Terminating a Lease

Follow these best practices when navigating the process of formally breaking an apartment or home lease:

• Carefully review your lease agreement to identify relevant clauses, required notices, and potential penalties.
• Provide proper written notice per your contract, typically 30-60 days in advance, via certified letter to create a paper trail.
• Maintain thorough documentation of all communications, agreements, payments and receipts to avoid potential disputes.
• Photograph and clean the rental to maximize chances of getting your full security deposit back after move out.
• Return keys on time and obtain written confirmation from the landlord documenting vacating the property as agreed.

Following protocol helps protect tenants’ rights and minimize financial losses when exiting a lease early. Consult a local tenant rights group or real estate attorney for guidance navigating formal lease termination.

Expert Insights

We asked real estate attorneys and tenant advocates to share their top tips for renters needing to terminate leases early:

“Read your lease carefully to identify any low-cost predefined exit options before assuming you must pay maximum penalties.” – Mark Evans, Real Estate Attorney

“Negotiate – offer to help find a replacement tenant if the landlord reduces buyout fees.” – Leah Wu, Renters Rights Counselor

“In some states, landlords must make reasonable efforts to re-rent units quickly when leases are broken.” – Michael Howe, Tenant Lawyer

“When possible, time your lease termination date with the start of your next rental agreement to avoid paying two leases.” – Andrew Campbell, Renters Legal Clinic

“Conditional clauses like military orders and domestic abuse may legally allow lease termination without standard fees.” – Jessica Park, Renters Alliance

“Document safety and habitability issues that may qualify as constructive eviction exceptions for breaking leases.” – Diego Ortiz, Housing Justice Nonprofit

Arriving informed and prepared to negotiate can potentially yield huge savings off punitive lease break costs. Understand your rights and obligations.

Final Words

While terminating a rental agreement prematurely may sometimes be necessary, the financial consequences through fees and ongoing costs imposed by landlords can be significant. Before breaking a lease, tenants should carefully consider alternatives like subletting, negotiate reasonable early exit terms with the landlord, and leverage legal tenant protections to minimize expenses.

With proper documentation and strategic preparation, tenants can aim to limit lease break penalties and avoid contentious disputes. But ultimately, you must assess whether breaking the lease truly makes economic sense or if you can fulfill the remainder of your contractual rental obligation.

Answers to Common Questions

What are the best excuses for tenants to break a lease?

Some legally valid reasons to break a lease with reduced or no penalties include military deployment orders, domestic abuse situations, landlord violations making the unit uninhabitable, or severe medical issues requiring relocation.

Which types of leases cannot be cancelled early?

Commercial property leases tend to be more rigid and expensive to break versus residential leases. Always consult an attorney before attempting to terminate a binding commercial lease agreement.

What is the most common method for tenants to terminate a lease?

Providing proper written notice to the landlord per the lease agreement terms, typically 30 days but sometimes 60 days in advance, is the most common way to formally initiate the lease termination process without being considered in breach of contract.