Early Termination Fee

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.

1. 1A pre-set charge for ending a fixed-term lease early
2. 2Often one to two months' rent or a flat amount
3. 3An alternative to owing rent until the unit is re-rented
4. 4Must usually be a genuine estimate of the landlord's loss
5. 5In many states the landlord must try to re-rent to limit your costs
6. 6Certain protected reasons may let you leave with no fee

• Fees far higher than the landlord's actual loss
• Being charged a fee and ongoing rent at the same time
• Landlord not trying to re-rent to reduce your liability
• Unclear lease language about how the fee is calculated
• Fee charged even when a legal right to break the lease applies
• Confusion between a flat fee and continued rent liability

• Read the early termination clause before you sign the lease
• Compare the fee to what you would owe if you just paid until re-rented
• Ask whether your state requires the landlord to re-rent promptly
• Check for protected reasons to break a lease without penalty
• Get any early-exit agreement and final balance in writing
• Provide as much written notice as possible to reduce your costs