Changed your mind?
Did you think you had a right to change your mind within
three days of signing the lease? If you did you were wrong.
(Yes, there is such a thing, but it only applies to
purchases of consumer goods or real estate at a place other
than at the merchant's place of business. See Tex. Business
& Commerce Code 39.001.)
Want out early?
You want out because you are buying a house, got transfered
or because you are sick of dealing with your landlord,
neighbors or roomates. But you don't want to skip out, lose
your deposit and hurt your credit rating. How do you get
out? You could join the military.
(If you in the military service and go on actice duty after
you execute a lease, you may terminate the lease upon
giving notice effective 30 days after you are supposed to
pay rent next. See Soldiers' and Sailors' Civil Relief Act,
50 U.S.C. 534.)
There are easier ways than joining the military of course.
The reason you are leaving is the place to start. If the
place you are renting is perfect and are leaving because of
a new job or something then you might have to make a deal
with the landlord to get out of the lease (more below).
However, if you are leaving because the landlord will not
make repairs, or is harrassing you, then you might be able
to blame the landlord for the termination and resist
efforts by the landlord to claim you are breaking the
lease. Go to the applicable topic to learn when you can
legally terminate the lease (e.g., repairs). Of course, it is very, very
rare for a landlord to agree that it violated the law
which authorized you to break the lease early. So you
should know what the landlord will claim and what they
will want.
Consequences for terminating without excuse
If a tenant does not have a legal excuse for terminating
early, a tenant can be held responsible for the remaining
rental payments under the lease. This is the maximum
potential liability for premature termination. A tenant can
still be liable for damages to the property and reasonable
cleaning fees if authorized in the lease. If a tenant moves
out early, and the tenant's deposit is too small to cover
these charges, landlords sometimes pursue other actions to
collect the funds, and usually make reports to credit
agencies if collection efforts prove unsuccessful.
If you want to terminate early, you should try to work
something out with your landlord (even if the landlord is
the one to blame for your early departure). If you make a
deal, get the agreement (referred to legally as a release) in writing to prove you
are no longer responsible under the lease. A form
agreement is provided in the forms section. You should at least give
the landlord notice of your intentions, because you
will receive credit for any rents they collect from a
new tenant on your place after you move out. Giving
notice may enable them to find another tenant before
you actually move out. Texas law now requires
landlords to attempt to locate another tenant to take
over your lease (called a duty to mitigate).
You can also find someone else to rent your place to
reduce your liability as long as the landlord finds
them acceptable.
Reletting Fees Are No Joke (but they are often unfair)
No matter what happens it seems that many landlords will
try to charge you a "reletting fee" for having to prepare
the dwelling for reletting to another tenant. Of course,
reletting fees are usually authorized in their one-sided
lease agreement often written by Texas Apartment Association (TAA). But,
the reletting fee must be a fair amount to cover
actual expenses for getting a new tenant on the hook
and cannot be unfairly inflated. TAA usually sets this
fee at 85 percent of a month's rent. It has been this
high for years. Is that a fair level? You decide.
Sometimes it is not proper to charge a reletting fee at
all. This is hard to believe but you cannot be penalized
for breaking a lease. Let's think about that again: The law
forbids you from being penalized from breaking a lease
early. Many landlords proably never knew this. You are not
supposed to be penalized, you are only responsible for
making up for the landlord's losses. So, if you terminate
the lease early and a new tenant is not found, a landlord
can charge you only for the total rent owed under the rest
of your lease (but cannot also charge you a reletting fee
or other termination fee because your paying the two months
of rent essentially means that you paid the entire lease
out in full).
So, if there was only two months left on your lease, the
rent for those two months is the maximum amount you could
owe (it can only get lower if the landlord agrees to take
less or the landlord finds another tenant to rent the
premises in your place). You would not owe two months rent
and a reletting fee (the fee in that case would be a
penalty). You also do not automatically lose your deposit
because that would be a penalty as well. The security
deposit is used to pay for any damages or charges you owe
(unless you agree to give it up as a part of an agreement).
Typical deal: one month's rent plus deposit
Most landlords and tenants do not want to wait around to
determine if the landlord is able to relet the premises.
Most people want to make a deal and move on so many
landlords make a deal with the tenant if the tenant wants
to move out early without an excuse. (Again, try to find
some leverage with the landlord before starting
negotiations to move early. If there are problems with the
premises, mention these first. Try to let the landlord know
that unless you move out early, the landlord may have to
deal with reasonable requests of yours.) Many landlords
will ofter to let tenants pay them an extra month of rent
and let them keep the security deposit and the landlord
will let them out of the lease. If the landlord relets the
premises the next day then that might not have been a great
deal for the tenant. But if there was 10 months left on the
lease then it might be worth it to take the deal rather
than to take the risk that the landlord would not find
another person to rent the place. (A landlord might not be
in a big hurry to relet the premises when it knows you are
paying the rent.) Whatever deal you make, get the agreement in writing, clearly
spelled out, signed and dated by both of you.
New landlord does not affect the lease (unless foreclosed
on)
If the landlord sells, dies or transfers the property, the
new owner is obligated to honor your lease and any other
agreement you made with the original owner or management.
(This is another reason to always have important agreements
in writing, signed and dated.) However, if the property is
foreclosed on by a bank or some other entity because the
landlord did not pay the mortgage on the premises, the new
owner is not obligated to honor your lease (or any other
agreement), but they must allow you to stay at least 30
days from the date of the foreclosure sale as long as you
do not violate any other portion of the lease and you are
current on your rent. If you receive notice that your
landlord is about to be foreclosed on, and someone else is
demanding you pay them rent or vacate, consult an
attorney because it is sometimes hard to determine who
to give the rent to.