Why You Might Face a Penalty

As with any contract, you could face a penalty if you break your lease. If your lease is for a fixed term (such as a year), as leases typically are, it means you've agreed to pay rent for the entire term. The fact that you only pay your rent month by month doesn't mean you're automatically off the hook for the remaining payments if you decide to move out early.

If you must break your lease, the key is to avoid—or at least limit—a penalty from your landlord. The chances that you'll have to pay the penalty depending on the situation. Here's what you should keep in mind:

You Can Afford To Dwell Well.

Lowest Chances of a Penalty

Under certain circumstances, you may confidently break your lease knowing you won't have to pay the penalty. If you find yourself in one of the following situations, make sure you give notice to your landlord to avoid any problems:

• Your apartment is seriously damaged. If your apartment becomes damaged to the point where it's uninhabitable, you may break your lease without a penalty. However, the damage must have been caused by no fault of your own, such as by a natural disaster or a crime.
• ​You're called to active military duty. If you're in the military and you signed your lease before you were called to active duty, the federal Soldiers' and Sailors' Civil Relief Act lets you break your lease without a penalty. Several states have laws that also let you break your lease if you need to relocate because of a military order.
• You've suffered a serious blow to your health. In some states, you can get out of your lease if you become very sick or injured, or if you need to move to an assisted living facility. Check the law in your state for more information