When searching for a new rental property, you may be focused on your immediate needs and timeline. Of course, when signing a lease, it's important to review the length of the lease. Once signed, the expectation is that the parties have committed to the entire length of the entire lease.
When Life Changes Unexpectedly
Despite the best intentions or plans, life can be unpredictable. There are circumstances that can arise that cause a change of plans unexpectedly. In the current real estate market, there are many people who are moving due to circumstances beyond their control -- whether a lost job, health event for themselves or a family member. An unexpected move may also be the result of a change in relationship status. I work with people who have fallen in love and need to find new housing and, sometimes, even blend their families.
At the same time, as an attorney and real estate agent, I also work with people going through difficult events like a divorce or sudden loss of a partner. Sometimes, people need to change housing urgently as a result of an emergency. There are also special legal protections for members of the military who receive unexpected orders requiring a change in duty location.
So, what to do if an unexpected event results in a need to change the terms of a lease early? Regardless of the situation, a change in life circumstances can become even more stressful if the event also results in the need to change housing. For people who are renting, the first step is to review the terms of the lease. In some cases, there will be explicit provisions regarding early termination. In other situations, the lease may not contain specific provisions, creating more ambiguity for the landlord and tenant when faced with an unexpected situation.
Communication is Key
In my experience, communication is key. As the tenant, it is important to contact the landlord as soon as possible to explain what has changed. Prior to the conversation, have a suggested plan in mind. The landlord will need to know your preferred transition date and, of course, as much advance notice as possible.
How to start this hard conversation? Well, it won’t get easier the longer you wait! As a first step, I recommend reaching out to the landlord by email explaining that there’s a new situation and you would like to have a phone call or video chat. It’s important to try and maintain as much positive communication in the relationship as you can. While the lease is a contract that both parties must follow, you should still maintain good communications about the circumstances and plan.
When reaching out to the landlord, be prepared to give a concise summary of the changed circumstance as well as your new move date. From their point of view, the most important information may be the new timeline as far as the end of the lease. Depending on the time of year and market, the landlord may be able to find a new tenant which helps solve the problem of an earlier termination for both sides.
In my experience as a real estate agent, some landlords are open to an early termination of the lease if the market has high demand and a higher rent can be obtained from a new tenant. If you happen to be in this type of situation, then at least this aspect of the stressful circumstance may be resolved promptly!
Exploring Your Options
What to do if the landlord is upset or refuses to cooperate? Unfortunately, there are situations where a landlord can demand that the tenant continue payments for the rest of the lease. However, there may still be options!
For example, the tenant may be able to sublease under the existing lease. Even if you are in a difficult situation personally, it is important to demonstrate a good faith effort to bring in a new tenant. Use social media to reach out to friends and family - perhaps you can find someone who can take over your responsibilities for the remaining duration of the lease.
Instead of a sublet, you may even find someone who is willing to take over the lease entirely. This scenario is called a “replacement tenant.” Basically, the new tenant would assume all of the existing obligations of the current lease. This solution can work well for all the parties involved.
Also, in my experience, there is a lot of room for negotiation in real estate. If you are unable to find a new tenant, you could try to negotiate the amount due to the landlord. Look up local resources that may provide free legal advice or contact an attorney about appropriate options. In some states, the landlord is required to make good faith efforts to rent the property to a new tenant. Generally speaking, the landlord can not hide the fact that the property is now available for rent.
The landlord is under an obligation to mitigate damages owed by the tenant breaking the lease. If a new tenant is found, then the landlord may be required to reduce the amount that you owe under the existing lease agreement.
Knowing Your Rights and the Local Laws
Some states and local governments also have laws and regulations that cover situations where a tenant has unexpectedly encountered “extreme hardship.” Again, as an attorney and real estate agent, I have found that these provisions can contain strict requirements in order to be met. It is important to gather as much written documentation as possible regarding the situation.
For example, a letter from a doctor would be very useful if there is a health-related issue. If the situation involves a change in employment, documentation from the previous or future employer would also be relevant.
It may come as a surprise that even a tenant’s death is not an automatic basis to end the lease early. The tenant’s obligations pass onto the estate as a legal matter. However, this is also the type of situation where good communication and legal advice may help to mitigate the amount that is owed as lost rent to the landlord.
Personally, I approach each situation with the hope that everyone can be reasonable and work together to solve even unexpected problems. Life happens and, hopefully, even the most strict landlords can appreciate that there are situations beyond anyone’s control. At the end of the day, hope for the best but in the worst case scenario – be prepared and communicative in order to achieve the best possible outcome even in the most dire circumstances.
