An early termination fee is a set charge you agree to pay if you end a fixed-term lease before it expires. It is often defined in the lease as a flat amount or a number of months' rent, giving you a clear cost to exit early. It is one common alternative to remaining liable for rent until the unit is re-rented.
In short
An early termination fee is a set charge you agree to pay if you end a fixed-term lease before it expires. It is often defined in the lease as a flat amount or a number of months' rent, giving you a clear cost to exit early. It is one common alternative to remaining liable for rent until the unit is re-rented.
Breaking a lease can be expensive, and an early termination fee can either cap your costs or, if unreasonable, add to them. Knowing how the fee works and your rights helps you choose the cheapest legal way out and avoid paying more than the law allows.
A pre-set charge for ending a fixed-term lease early
Often one to two months' rent or a flat amount
An alternative to owing rent until the unit is re-rented
Must usually be a genuine estimate of the landlord's loss
In many states the landlord must try to re-rent to limit your costs
Certain protected reasons may let you leave with no fee
It varies by lease, but it is commonly one to two months' rent or a flat amount stated in your contract. Check your early termination clause for the exact figure.
Usually not for the same period. An early termination fee is typically meant to replace ongoing rent liability, so watch for being charged twice.
Often no. Certain protected situations let tenants break a lease without penalty, depending on your state's law.
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