Any renter knows that a new apartment comes with a new lease agreement. It’s just a part of the apartment rental process. Once you find the perfect apartment, you’ll sit down to finalize the paperwork, including the lease. Once you finalize this step, the apartment is yours!
Before you get too excited about moving in and decorating though, it’s important to understand the lease before you sign on the dotted line. This is your ultimate guide to lease lengths for your next apartment rental.
What is a lease?
Let’s start with the basics. A lease is a legally binding contract between a tenant and a property owner. Tenants agree to pay rent in exchange for leasing an apartment unit for a certain period of time. The lease defines everything from the rent rate to the move-in date.
Leases outline exactly how much money you’ll owe for each month’s rent and it also states how much you need to pay for a security deposit and other apartment application fees. Paying rent and security deposits are some of the rules agreed upon when you sign the lease and before you move in.
All apartment complexes and property managers will require tenants to sign a lease. Landlords want to rent to people who can pay the cost of the property each month and are willing to agree to the legally binding lease.
How long is a lease for an apartment
Now that you understand leases at a high level, let’s talk about lease lengths. The length of the lease can vary, depending on the landlord or property owner. Before signing, you need to understand how long you’re signing for as you’re legally bound to the lease terms.
Leases range from short-term leases to long-term leases. Some landlords allow you to rent on a month-to-month basis while others require an annual commitment. Term leases will be in the lease document and will designate how long you’re required to stay in the lease. You can break a lease, but you’ll often see hefty fees involved in terminating your lease early.
Depending on where you are in life and what you’re looking for when it comes to renting, you’ll want to decide what lease terms are right for you. Once you know your living situation, you can sign the lease agreement that is right for you.
How long do most apartment leases last?
Most apartments will offer a term lease that is at least a year. Property managers want tenants to sign a year-long lease because it guarantees they’ll have a tenant renting the unit and paying rent for 12 months. The property manager is responsible for filling units so a longer lease is appealing to them.
However, you can find a variety of lease lengths, depending on the apartment complex and the landlord. You can also negotiate your lease terms when it comes time to renew the lease agreement.
What is the shortest time you can lease an apartment?
Lease terms vary but short-term leases are anything shorter than one year. Anything more than one year is a long-term lease. Regardless of the lease term, you’ll still pay a security deposit and monthly rent for all rentals.
You can find a short-term lease that ranges anywhere from 30 days to three months to six months. Short-term rentals will outline the lease term in the many pages of the agreement itself.
A six-month lease is short term but the shortest of all is a month-to-month lease or a 30-day lease agreement.
What is a month-to-month lease?
Month-to-month leases allow the new tenant to decide each month if they want to renew and keep renting. Though this agreement provides flexibility to the renter, it will typically cost more. Landlords have to continually find new renters for the open apartments so a month-to-month lease is a riskier option for them.
Usually, with a short-term lease, you’ll need to give the landlord 30-days’ notice before you vacate the apartment. For month-to-month leases, this means you need to know if you’re staying into the next month when you sign the short-term lease.
Basically, you’ll need to plan 60 days out when you want to move in and move out before signing anything. Otherwise, you might owe fees for breaking the lease early.
With other short-term leases, you’ll still need to give the landlord a heads-up before you plan to move out. Remember, the lease is a legally binding contract so make sure you understand the fine print before signing it.
Reasons to choose a short-term lease
So, why would people choose a short-term lease? Here are a few pros and cons.
Pros of a short-term lease
You can try a new city — Short-term leases are great if you’re considering moving to a different city. You can sign a month-to-month lease without having to commit to an extended time in that location. If you like the city, great! You can consider signing a long-term lease after your first month is up. Or, if you don’t love where you live, you can find a different city or apartment.
You can move out into your first apartment with low risk — Your first time moving out is a big, intimidating decision so avoiding a long-term lease is a good idea if you’re unsure about living on your own. By signing a shorter lease agreement, you can test if you like living on your own or not.
You can rent furnished apartments — If you travel a lot for work or are a digital nomad, then a short-term lease with furnishings included are a great option. You can move from place to place fairly easily without having too many objects or commitments tying you down.
Cons of a short-term lease
They cost more — Because short-term rentals are riskier for a landlord, they typically cost more. You might see a ding in your bank account because the fees, like rent and the security deposit, are higher.
You’ll need to plan your next move frequently — A short lease term means you need to have the next move already planned out. Thirty, 60 or 90 days will come and go quickly, so you need to think ahead about if you’ll stay or go. This is stressful for some people who don’t like constantly planning the next move.
What is the longest lease term for an apartment?
If a short-term lease is anything under 12 months, then a long-term lease is 12 months or more. The lease term will vary, but you can find leases for 12 months, 15 months or even 24. It’s up to the landlord to determine the exact lease term.
Reasons to choose a long-term lease
A long-term lease is a good option for renters who know they want to stay in one place for a longer period of time. These lease agreements provide:
Stability — When you stay at one apartment for a while, you have more stability because you’re able to plant roots and know you won’t have to move frequently.
Guaranteed place to live — Unless you’re evicted, you have an equal housing opportunity to find a place and stay there through the length of your lease.
Ability to budget — Knowing that you’ll be in the same place for a set amount of time, you can budget how much you’ll spend in rent for the length of the lease. This can help ease financial stress.
Building a relationship with the landlord – As you stay in one place because of a long-term lease, you’ll build rapport with your landlord, which is a nice benefit for when you move in the future to have a landlord reference on-hand.
What you need to know about monthly rent and an apartment lease
When you’re apartment hunting, you need to consider everything from location to the cost of rent to lease length. Regardless of the lease duration, you need to know that state laws view leases as legally binding contracts. So, don’t sign anything before you fully comprehend the ins and outs of the lease.
Do you understand the lease terms so you know what you’re getting yourself into? Before you dot your “i’s” and cross your “t’s”, ask yourself these questions:
How much can I spend in monthly rent?
Can I afford the security deposit and other fees?
How long do I want to live in one place?
Do I want a month-to-month lease or a year-long lease?
Truthfully answering these questions for yourself will help the process move smoothly and ensure you’re moving into the place of your dreams and signing the terms you are comfortable with.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
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As the old saying goes, “In real estate, location is everything.”
You may not know much about REITs, but you might want to consider one of them as a career. They’re great for people who like real estate, enjoy making money, and need consistent work hours.
Real estate investment trusts (REITs) are companies that were formed to make it easier for individuals to invest in real estate.
Want to know what the top paying jobs in Real Estate Investment Trusts are in 2022?
Well, take a look at this list of 25 best paying jobs for real estate investment trusts and see if you can find one that sounds perfect for you. In addition, each job features information about how much each job pays, what you can expect on the job, any job training needed, and other fun facts!
If you are looking for your next career, this article will give you plenty to think about as well as potential opportunities that may be available to you.
What are real estate investment trusts?
Real estate investment trusts, or REITs, have become an increasingly popular way for investors to get involved in the real estate market. REITs allow people to invest in large-scale real estate projects without having to purchase and manage the properties themselves.
In addition, REITs offer shareholders a wide range of benefits, making them a great choice for those looking to invest in this growing market.
How do real estate investment trusts work?
A REIT is a type of company that owns and operates various types of real estate, and because they are exempt from corporation tax on profits generated through rental income and the sale of rental properties; They are a very attractive option for high-earners.
They pile investors’ money together and invest in various commercial real estate, which increases returns over time. In addition, REITs are generally owned by the general public, and they invest in real estate assets.
Lastly, they make a profit through investments or leasing; a return on investment is typically received as a dividend. Real estate investment trusts are similar to mutual funds in that they hold investments, distribute dividends, and pay taxes.
Is a real estate investment career good?
Real estate investment companies are a great place to start a career in real estate.
Real estate investment trusts (REITs) are one of the most productive industries today. They provide steady and consistent growth, as well as good job opportunities with high salaries. Careers in real estate that can lead to better-paying jobs include appraisers and investment bankers.
Best paying jobs in real estate investment trusts
The market for REITs has grown rapidly in recent years, with the total value of REITs reaching almost $3.5 trillion by the end of 2021 (source).
There are many different jobs in the real estate investment trust industry that come with a variety of salaries. The best paying jobs are reserved for the C-level executives:
Chief Executive Officer: The CEO is the highest-ranking executive officer in a company and is responsible for making major decisions that affect the business. CEOs in the REIT industry earn an average salary of $468,000 per year.
Chief Financial Officer: The CFO is responsible for financial planning and reporting, as well as managing relationships with banks and other lenders. CFOs in the REIT industry earn an average salary of $341,000 per year.
Chief Operating Officer: The COO is responsible for overseeing all day-to-day operations of a company. COOs in the REIT industry earn an average salary of $325,000 per year.
Followed by the attorney, which is one of the highest-paying professionals in real estate investment trusts.
Now, we are going to list the most lucrative jobs in REITs. Then, you can decide… is real estate investment trusts a good career path for me.
The higher paid jobs will come with more education needed and years of experience.
1. Real Estate Attorney Jobs
Real estate attorneys are in high demand for their knowledge of transactional law and contractual issues. They work on a variety of deals involving the purchase, sale, or leasing of real estate. As such, they provide critical legal support to the real estate investment trust (REIT) industry.
Real estate attorneys license in their state to practice law. They can prepare contracts, advise clients on purchases and investments, review documents, represent mortgage lenders at closing, or simply provide legal counsel without the requirement of an attorney’s license.
Consequently, real estate attorney jobs are an excellent opportunity for those looking to work in the REIT industry.
Real Estate Attorney: well over 6 figures (average)
2. Real Estate Developer
Real estate developers are typically involved in the design, construction, and marketing of properties. They are also involved in land assembly and subdivision, zoning regulation, and the establishment of building codes.
Builders are involved in all aspects of the development process, from acquiring land to constructing buildings. Promoters are responsible for finding investors and marketing completed projects. In both cases, real estate developers may work either on their own or with a team of partners.
A developer obtains land and constructs assets for sale, while also selling them off when they become old enough to be sold again.
Real Estate Developer Salary: over 6 figures (average)
3. Director of Real Estate and Facilities
The Director of Real Estate and Facilities is responsible for a variety of tasks within the department. These tasks include, but are not limited to, the following:
Acquiring new properties
Negotiating leases
Overseeing property management
Maintaining the company’s physical infrastructure
Developing and implementing strategic plans
A director of real estate and facilities is a key role in any company that deals with real estate investment trusts (REITs). Therefore, this position often leads to advancement opportunities, making it an excellent career choice for those interested in this growing field.
Director of Real Estate and Facilities Salary: $130,000 a year (average)
4. Director of Acquisition
Directors of acquisitions in real estate investment trusts are responsible for finding new properties to invest in for the company.
Typically, they work with their analysts to conduct due diligence on potential investments and analyze the risks and rewards involved in order to provide a recommendation to their superiors.
The acquisition team is responsible for finding investment opportunities for the company, which can be traditional real estate assets or creative ideas that can become a business. They are constantly on the lookout for new and innovative opportunities that can help bolster the company’s growth.
Director of Acquisition Salary: $125,000 a year (average)
5. Real Estate Agent
As a licensed real estate agent, you would help clients buy, sell, and rent properties. In order to become a real estate agent, you must pass an exam that covers topics such as contracts, ethics, and state laws. You would be responsible for understanding the real estate market and helping your clients make informed decisions about their property transactions.
In the case of REITs, you must be a commercial real estate agent who are in charge of dealing with important financial data. They need to know about the internal rates of return, gross rent multipliers, and capitalization rates in order to do their job effectively. In order to become a commercial real estate agent, you will need some background in business and finance. This knowledge will help you understand your client’s needs and better serve them.
Unlike most professions, the more business deals you close as a real estate agent, the better your pay is. Furthermore, many agents work on commission-based pay, so it’s important to be knowledgeable about the market and have a strong sales skill set.
Agents who are successful can make much more than this amount; however, those who are just starting out may make less until they gain experience and build a client base.
Real Estate Agent Yearly Commission: $100,000 a year (average)
6. Investor Relations Manager
An Investor Relations Manager is responsible for managing the relationship between a company and its investors. They must be able to quickly understand complex financial information and communicate it in a clear and concise way. Additionally, they are responsible for communicating the company’s financial performance and strategy to investors.
They are also responsible for updating quarterly reports on the investor’s online dashboard. This can be a high-stress job because you must keep your investors happy especially during a market downtrend.
Investor Relations Manager Salary: $100,000 a year (average)
7. Project Manager
Project managers are responsible for ensuring that a project is completed on time and within budget.
They work in teams to make sure that all aspects of the project are completed. Thus, they must have strong organizational skills. They also typically have experience in leading and coordinating teams.
This is a highly lucrative job for those building new assets for a REIT. The highest-paid 10 percent earned more than $187,000, while the lowest-paid 10 percent earned less than $59,000.
Project Manager Salary: $90,000 a year (average)
8. Accounting Manager
They do this by preparing financial statements, maintaining accounting records, and overseeing the work of accountants and bookkeepers. In order to qualify for this position, you will need at least a bachelor’s degree in accounting or a related field, as well as several years of experience in accounting or bookkeeping.
However, with experience and expertise in the field, it is possible to earn much more than that. Those who work for real estate investment trusts (REITs) can expect to make even more money.
Accounting Manager Salary: $90,000 a year (average)
9. Asset Managers
Asset Management is a process that oversees the operational and financial work of a portfolio of assets. This includes tasks such as budgeting, forecasting, reporting, and analyzing data to make sure the asset is performing well.
As they are responsible for managing the portfolio assets in the real estate investment trust (REIT), they must expect a higher stress job. In addition, their job entails working with other departments in the company, such as accounting, acquisitions, development, and finance.
Asset Managers Salary: $89,000 a year (average)
10. Construction Supervisor
A construction supervisor oversees all aspects of a construction project, ensuring that it is completed on time, within budget, and to the required standard. This position requires a great deal of experience and knowledge in the field, as well as strong leadership skills.
They make sure that everything runs smoothly! Speficially, all the necessary equipment, materials, and supplies are ordered and on-site when they are needed. They also check the quality of the work as it is being done; making sure projects are constructed in accordance with contract documents, standards, codes, and policy.
In order to become a construction supervisor, you need only a high school diploma or GED. However, five years of experience in yard operations or equivalent education and experience is preferred.
Construction Supervisor Salary: $89,000 a year (average)
11. Investment Due Diligence Analyst
An investment due diligence analyst is responsible for conducting an extensive analysis of potential investments for a real estate investment trust. They work with the team to identify opportunities, underwrite deals, and make recommendations. The role is essential in helping the team make sound investment decisions that will benefit the company in the long run.
This job is a key player in the real estate investment trust (REIT) industry.
To be successful in this role, you’ll need experience with REITs or a national brokerage, as well as excellent quantitative skills including the ability to build real estate valuation models and distribution waterfalls.
Investment Due Diligence Analyst Salary: $80,000 a year (average)
12. Financial Analyst
The most common role of a financial analyst is assessing a company’s current and future financial health, which may include issuing stock recommendations, forecasting earnings, and providing risk analysis. Financial analysts may also work with investment bankers to identify new investment opportunities.
However, salaries can vary significantly depending on the size of the company, the city in which you work, and your level of experience.
Financial Analyst Salary: $80,000 a year (average)
13. Business Acquisition Analyst
An acquisitions analyst is responsible for reviewing potential investments and determining the risks and rewards associated with commercial property.
The analysis will include both macro-level information, such as the political and economic environment, as well as more fine-tuned data that is specific to the investment itself.
Many in this role have found a business degree to be well worth the cost.
Director of Acquisition Salary: $78,000 a year (average)
14. Commercial Property Manager
Property management is a growing field, as the demand for individuals who can manage both residential and commercial properties increases. The goal of property managers is to ensure assets are kept in good condition and are appealing to owners and tenants alike.
Real estate investment managers have a very important job, as they are responsible for meeting the needs of property owners, tenants, and investors.
Primarily, they oversee maintenance and repairs, collect rent, screen tenants and enforce lease agreements. They also may negotiate leases, recommend improvements to the property, and coordinate with contractors.
Commercial Property Manager Salary: $75,000 a year (average)
15. Real Estate Photography
Real Estate photography is a specialized field within the photography industry. As such, many photographers start their own businesses in this area.
In order to be successful, it’s important to have strong marketing and business skills. Your portfolio should showcase your best work and be tailored to the types of properties you will be photographing. Additionally, you may choose to offer additional services such as virtual tours or video production.
A real estate photographer would work closely with the marketing team.
Real Estate Photographer: $70,000 a year (average)
16. Marketing Coordinator
Marketing coordinators are responsible for developing and executing marketing campaigns.
They work with the advertising department to come up with ideas. Then, working with the rest of the company to make sure that those campaigns are executed properly. They create all marketing materials, track campaign results, liaise with outside vendors, and organize events.
Given the regulations around REITs, it is highly important that the marketing communications follow the investment directives from the SEC.
Marketing Coordinator Salary: $67,000 a year (average)
17. Maintenance Supervisor
A maintenance Supervisor is a position that requires managing and overseeing the work of others. Thus, ensuring work is completed in a timely, efficient and safe manner.
They are responsible for making sure all company policies and procedures are followed, as well as any legal requirements or safety regulations. Additionally, they manage budgets and expenses, as well as staff.
The ideal candidate will have experience in the property management or construction industries, as well as supervisory experience. A degree in engineering, architecture, or a related field may be beneficial.
Maintenance Supervisor Salary: $65,000 a year (average)
18. Property Appraiser
Appraisers are typically called in when there is a need to settle a dispute about the value of a piece of property, or when someone is buying or selling a home and needs to know how much it is worth.
Most states require that you be licensed in order to practice as an appraiser. The job outlook for appraisers is good; the Bureau of Labor Statistics predicts that employment will grow by 4% from 2020-2030 (source).
Property Appraiser Salary: $60,000 a year (average)
19. Leasing Consultants
Leasing consultants are responsible for meeting and greeting clients, touring potential tenants through a property, and helping them decide whether or not to lease it. They must be knowledgeable about the property they are showing, as well as about the local rental market.
Consequential, this is a good job for someone who is able to close deals, so being persuasive is important.
They should also be outgoing and comfortable working with people from all walks of life. A high level of professionalism is essential, as is attention to detail. Leasing consultants typically earn commissions based on the number of leases they sign, making this a commission-based job.
Leasing Consultant Salary: $50,000 a year (average)
20. Commerical Real Estate Intern
Commercial real estate internships are a great way to get started in the commercial real estate industry. Many internships will give you the opportunity to work with the CEO/COO and learn about all aspects of the business.
In most internships, you will gain vast knowledge while working with every department within the company.
Consequently, interns often have the chance to work with different teams and learn about all aspects of commercial real estate. This is a great way to gain experience in the field. Plus you will get a well-rounded working experience and the opportunity to build your network.
You must be a college student who is detail-oriented, self-starter, creative and strategic thinker in order to be considered for any real estate internship.
Commercial Real Estate Intern Salary: unpaid to $20 an hour
(Source for All Salary Information: Glassdoor.com)
Bonus = Real Estate Investors
Real estate investors use a variety of strategies to make money in the real estate market. Some invest a minimal amount of money, while others take on high-risk ventures.
In order to be successful, investors must be well-versed in real estate investment strategy and have extensive knowledge of the market.
This is why REITs are so popular with most investors. It allows a hands-off approach to real estate investing. Yet, still profit in the real estate appreciation and rental income.
Real Estate Investors Salary: varies on the amount of money invested but most want at least a 6-10% return
What real estate investment jobs are entry level?
Real estate investment is one of the best paying jobs in the world. The job offers a lot of opportunities for growth and allows you to work with different types of people.
It also has a relatively low barrier to entry, making it a great option for those who are starting their careers.
Most people in real estate started at the bottom and worked their way up the corporate ladder with hard work and persistence.
What are the minimum requirements for entry level real estate jobs?
The industry is growing rapidly and there are many different opportunities for those looking to enter the field. However, it’s important to note that entry-level jobs in this field come with specific skill sets and education requirements.
Most require at least a college degree if not at least 5 years of hands-on experience. One of the best places to start without any qualifications and education is as a leasing consultant
If you want to progress quickly in your career in real estate, consider taking a chance on one of the best paying jobs in REITs listed here. In fact, there are many jobs available in real estate investment trusts.
REITs – Which real estate investing job looks appealing to you?
The REIT industry is constantly growing, and with that comes new opportunities for a lucrative career path.
Many of the roles in a REIT are highly challenging, pay well, and are respected by investors. Many people work together as a team to build new projects, manage existing projects as well as work to finance them.
There are plenty of benefits of spending time researching this industry and finding the job for you.
In fact, it is an exciting and rewarding career!
Know someone else that needs this, too? Then, please share!!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Breaking a lease won’t hurt your credit if all debts are paid. However, if you leave debts unpaid, breaking your lease early can cause your credit to take a hit.
Breaking a lease is relatively common and can happen for a number of reasons. Oftentimes, a new job can require you to move midway through a lease. Other times, personal issues arise that can force you to cut your lease short.
As a result, it’s rather common for tenants to leave leases early, and it doesn’t make you a bad or unreliable tenant if you must. However, landlords will still expect full payment for the entire lease term, even if you’re moving out months in advance.
If you do have to your break your lease, it’s crucial you’re not indebted to your landlord. When tenants owe landlords money, landlords will sometimes hire collection agencies to collect debts, introducing a whole new set of problems—one of which can be a hit to your credit score.
Maintaining a good credit score is important for a number of reasons. A good credit score can:
Give you more housing options
Help you qualify for low-interest credit cards
Save on insurance
Make you a stronger job candidate
Your credit score follows you around wherever you go. Therefore, when your score goes down, it can be a tremendous setback—and can take you years to reconcile.
As a result, protecting your credit is one of the most important things you can do—and breaking a lease shouldn’t have to jeopardize it . Keep reading as we explain how breaking a lease early can affect your credit and ways you can break a lease while protecting your credit.
Does breaking a lease early affect your credit?
Breaking a lease doesn’t directly show up on your credit report, but the consequences of breaking a lease, if you’re indebted to your landlord, can have compounding effects that sometimes result in a knock to your credit.
If you leave debts unpaid after breaking your lease, your landlord will likely use a collection agency to reclaim your debts. Your landlord probably won’t report the debt to a credit bureau, but the collection agency likely will.
If this happens, your credit will suffer, which can greatly affect you down the road.
Ways breaking your lease can hurt your credit
Like we said, breaking your lease doesn’t directly affect your credit, but the fallout often can. If you break a lease and don’t pay outstanding debts, your landlord may handle it in a couple different ways. A few possibilities include:
Your landlord may involve a collection agency: As we mentioned earlier, a landlord will sometimes bring in a debt collector if you don’t pay your remaining rent. If this occurs. the collection agency will likely report you to a credit bureau.
You may have trouble renting again: If your credit takes a hit, it will likely affect your ability to rent in the future. A 620 or higher is the usual score needed to rent an apartment. Most landlords run credit checks prior to renting to a tenant.
How to break a lease and protect your credit
The lesson here is that it’s best to proceed with caution when breaking your lease. Use our tips below to ensure you leave your lease with peace of mind.
Review the lease contract
Knowing your rights as a tenant is the first matter to address when breaking a lease—and the lease contract is the place to start. Sometimes, the contract will give you an easy out, like paying a small fee or allowing subletting. However, it’s pivotal you review the intricacies of the contract before beginning the process of breaking the lease, so as to be aware of your rights as a tenant.
Be transparent with your landlord
Having a one-on-one conversation with your landlord is a must if you plan on breaking your lease. If you’re transparent with your landlord about why you’re breaking the lease, they’ll most likely work with you to reach a solution that benefits everyone.
Keeping your landlord in the loop is a great way to create a line of communication and ensure they don’t take any negative action against you.
Look for a subletter
Subletting isn’t allowed in all lease contracts, but if it is, it can give you peace of mind in breaking your lease. Subletting, by definition, means finding someone else to take over the remainder of your lease. If you elect to sublet, it’s essential to check with your landlord first to ensure them you’re subletting to a reliable tenant.
Since your name will remain on the lease, you’ll ultimately be responsible for any issues with the subletter. As a result, it’s important to screen whoever is taking over the remainder of the lease.
Pay outstanding rent up-front
If you’re able, paying your outstanding rent balance at the time you break the lease is typically a foolproof way to ensure the landlord doesn’t take any negative action against you.
While there may be more intricacies within the lease agreement when it comes to breaking the lease, settling outstanding debts eliminates the possibility of the landlord bringing a collection agency into the picture. And in almost all cases, disputes over breaking a lease boil down to outstanding debts.
Situations when you can break a lease without repercussions
There are certain situations where tenants are protected by law when breaking a lease; therefore, it’s essential to know when you can break a lease without repercussions. The examples below vary from state to state and can require that some specific notifications are made to the owner of the property before exercising your right to break the lease. It is important to know your responsibilities under your state law before breaking your lease.
The unit is uninhabitable/doesn’t comply with housing codes: If you believe that your residency isn’t complying with health codes, look into state laws to confirm your suspicion. States have certain health codes that rental units have to adhere to. If your rental isn’t complying, you can terminate your lease without repercussion.
Tenant rights were violated: While some tenant rights differ from state to state, federal rights like anti-discrimination laws, privacy laws and the right to a habitable home protect tenants on the national level.
You’re active military: Tenants who are active duty military can break a lease without repercussions. The Servicemember’s Civil Relief Act allows military members to break leases due to their service.
Breach of quiet enjoyment was violated: The Covenant of Quiet Enjoyment guarantees that the tenant will get a peaceful environment. This is implied in lease agreements and, if violated, allows you to break a lease without repercussion.
The lease has a termination clause: Some leases include a termination clause that just involves paying a small fee. Make sure you review the lease contract before telling your landlord that you’re breaking the lease to see if a termination clause is included.
Frequently asked questions
Navigating the legalities of a lease contract can be difficult for tenants. As a result, other questions often arise when breaking a lease. Some common questions tend to be:
How long does a broken lease stay on your credit report?
The broken lease itself will not appear on your credit report, but any unpaid rent or other fees can stay on your credit report for up to seven years.
Does paying rent build credit?
Paying rent won’t build credit unless you report your payments to a credit bureau each month. In order to do this, you’ll need to sign up for a subscription service that reports rent payments for you. Your landlord will also need to sign up for the subscription in order to receive the payments through the service.
Keep in mind that it may be unlikely that your landlord will want to participate in this system, since they likely have their own system for collecting rent payments.
Rent-to-own, which involves renting a home with the intent to purchase it at the end of the lease contract, does not directly affect your credit either. Unlike mortgage payments, rent-to-own payments are not reported to credit bureaus.
Can you get debts from breaking a lease removed from your credit report?
In general, no. Unless the debt is truly inaccurate, it’ll remain on your report for seven years.
However, if you pay the debt after the judgment is already added to your credit report, you can work with the creditor to have the debt marked as “paid” instead of “open” on your report. This can improve creditworthiness and give you a better chance of receiving loans and renting in the future.
Leave your lease with peace of mind
When you break a lease, it’s best to leave no shadow of a doubt that your credit will be protected. Whether this means having a candid conversation with your landlord, paying your outstanding rent amount or finding a subletter, there are best practices you can put into action to avoid having to fix poor credit down the road.
Finding ways to fix your credit can be difficult, and often requires the help of a professional. Lexington Law’s credit repair services could help you get back on track. Get a free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
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