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.