Finding the perfect home is an investment in your future, so when you find it and want to submit that offer right away there can be one more thing holding back your purchase: a long-term rental lease.
Learning how to break a lease is not an easy task. But, if you follow these steps and work with your landlord or leasing company in the right way - it can be done.
How to Break a Lease?
If you want to get out of your lease without breaking any laws, some things can help. The policies in each state regarding breakage vary, so renters need to know what they're getting themselves into before moving forward with their plan.
Here are some options to break your lease.
Take an Extra Look for a Home Buying Clause:
If you're ready to buy a house, make sure there aren't any hidden clauses in your contract. The lease agreement is a big deal and should be looked at closely. You may have the right to get out of your rental contract early if you are planning on buying property, so make sure this applies before signing.
Consult your Landlord:
If you planned to break your lease, your landlord may be willing to work with you if the contract is going to break. They might find a way for both parties involved in this agreement, no matter who has done what wrong or right during our time living there together.
Work with the Seller:
If your landlord does not move on their end, try your negotiation skills. If they break the lease, they may be willing to pay the final costs or penalties, so do not give up hope just yet.
Pros of Breaking a Lease:
Shifting into Your New Home -
Making the move into your new dream home can be an exciting process, but it's not always easy. One way to make sure you're prepared for this major life change would involve breaking any leases and getting out there as soon as possible so that everything goes smoothly from the start-to-finish.
Buying a Home Means Building Equity -
When you buy a home, the dollars go toward improving your financial stability. Renting doesn’t allow homeowners to invest like this and enjoy monthly returns on their investment.
Cons of Breaking a Lease:
By moving out early, you may be giving up more than just money. You'll also lose any compensation for past rent paid as well as your security deposit - which can make it hard to find an apartment elsewhere in time.
End up with Credit Score Damage -
The landlord's fees could harm your credit score. If you refuse to pay, this will make it difficult for future purchases of even smaller items like mortgages and cars because most banks require applicants have good standing to be approved with them.
The effects may not always be immediate, but will eventually accumulate until they are over, meaning that if someone does not take care of his or her debts, new taxes may be closed due to lack of liability.
Legal Ramifications -
The rental landlord can pursue legal action and sue you for early termination of a lease, even if they win in court. It will stain your credit report making it more difficult to rent elsewhere should the need arise.