An Introduction to Rental Agreements
Rental agreements are legally binding contracts between landlords and tenants. They are a promise between both parties that goods and services will be either provided or paid. For example, the tenant agrees to pay rent for the premises, and in exchange, the landlord agrees to supply a livable space that abides by local housing code and regulations.
Rental agreements are sometimes oral but most often written documents that explain the terms and conditions of the tenant’s stay in the property. The agreement should cover topics such as:
Rent
Utilities
Amenities
Repairs
Outdoor maintenance
Pets
Guests
Smoke-free policy
Premises inspections
It is important to be familiar with the terms of the rental agreement before moving in to know what is expected of both parties. In most states, rental agreements cannot be arbitrarily changed by the landlord to favor the landlord . Landlord-tenant laws allow tenants to hold landlords to the terms of the rental agreement. If the rental agreement does not be honored, a tenant may be due compensation.
Tenants may be legally protected if the landlord does not honor the agreement. Depending on the jurisdiction, this may lead to the cancellation of the rental contract, money damages, rent abatement, or other remedies.
Even when the landlord and tenant agree to be bound by the written terms of the rental agreement, a tenant may be able to cancel a rental agreement before moving in if the landlord failed to honor other laws and regulations. Tenants can seek recourse if the landlord has violated:
Like any contract, tenants need to know the terms of the rental agreement, and how those terms might be affected by landlord-tenant laws.
Acceptable Reasons For Cancelling
The above options may not give a solid enough answer to fulfill the question "Can I get out of a rental agreement before moving in?" In certain circumstances, you may have an even more honest reason for not wanting to move into the apartment you may have already signed a lease for. A job loss, sudden relocation to another city, serious medical problems, and even the sudden need of a family member or friend to live with you, can all present very legit reasons to cancel a lease or to break a lease before the end date. These could even be solid grounds to break a lease for military members under the Servicemembers Civil Relief Act (SCRA) that we covered here. Whether you have to pay rent until the end of the lease term or not will, again, largely depend on your location, the contents of your rental agreement, and any particular state or local laws applying to breaking a lease.
Examining the Cancellation Clause
Addressing the cancellation process, a rental agreement often contains a cancellation clause that stipulates how a tenant can terminate the agreement. The clause should be referenced early in the rental agreement, usually under the termination section. A rental agreement that includes a cancellation clause provides a safety net to the tenant if he or she changes his or her mind about renting the property. This clause is not legally required, but many landlords include them, so it is important to look for them before signing. Most of the time, the landlord must provide a specific cancellation rights form with the rental agreement, but check the actual agreement to find out what to do if the tenant decides to cancel it.
A tenant should review all clauses and any additional addendums fully with an eye for the cancellation clause before entering into any rental agreement. If there is any question, of course, ask the landlord for clarification. Both the rental agreement and any addendums should be considered binding and final once signed, so it is critical that the tenant understands what he or she is signing before doing so. If the tenant is unsure whether the cancellation clause is fair, he or she can talk with the landlord to renegotiate.
Tenants’ Rights and Legal Protections
Every state has different legal protections for renters seeking to cancel their apartment leasing contract. We recommend checking your specific state laws to see there are additional protections available to you.
New York:
New York has specific security deposit recovery rights. If you have given a security deposit on a rental agreement but are unable to move in, you may be entitled to a refund of that money. Unlike most other states, however, NY does not require landlords to make a good faith effort to reduce your security deposit liability if you break your lease.
California:
Making a good faith effort to mitigate damages is a requirement for landlords in California. As soon as you break your contract with your landlord to move into the apartment, they are obligated to find someone else to rent the apartment to you.
Illinois:
If you want to cancel your rental agreement in Chicago, you may be required to give notice to your landlord. You should be comfortable bringing this problem to your landlord rather than going to court. You may be able to leave the apartment and eventually sue your landlord for damages.
Arizona:
Arizona does not require a good faith effort to be expended by the landlord. However, Arizona also has some of the most onerous tenant protections in the United States when it comes to making sure that tenants don’t mislead landlords about their intentions to move. If a tenant requests to break their rental agreement, the landlord must be notified that they will begin to hold the tenant liable for a lesser amount than what they originally agreed to.
The Art of Negotiating With Your Landlord
If you have decided to cancel a rental agreement before you move into the premises, your next step is to prepare to speak with your landlord about the cancellation. If your cancellation is due to a defective condition in the premises, your termination of this rental agreement is permitted by law. If someone outside the premises has made a threat that prevents you from living in the unit, try to ask the landlord to address the situation. If he or she isn’t able to do what you request, it is best to try to reach an amicable agreement. Conducting focused negotiation will often yield a better result than going to court. Be ready to discuss the reasons you are cancelling the rental agreement. Anticipate the landlord’s questions and have responses prepared in advance. Be honest when you speak with your landlord, and offer to work towards his or her goals as well . Negotiation is rarely successful when one party acts like a bully or a cheat. In many cases, your landlord will be very surprised that you want to terminate your lease. This is why you must make sure to stay calm while negotiating with the landlord. Do not get offended or angry, and be willing to listen to any offers your landlord makes. Pen and paper will help you to take notes, as it’s critical that you document everything that occurs during your negotiation attempts. Focus your efforts on the positive aspects of your proposal. Do not focus on what they want from you; instead, give them reasons for why it would be beneficial to both parties for you to be allowed to terminate your rental agreement before you move into the premises. If you and your landlord are both prepared to do what it takes to make a deal, then you’ll be likely to have success in quickly moving through the negotiation process.
Penalties for Cancelling and the Consequences
While you may be able to cancel a rental agreement before moving in, be aware of any potential financial penalties that could occur. While you may be able to get your deposit back completely, you could still face losing some of it, or you could lose future money from not being able to move into the apartment or home at all. If you do crack your agreement, penalties can include:
- Losing your first month’s rent- Losing your security deposit- Paying twice the rent for the first 30 days to the person who takes over the lease and twice the rent for the second 30 days to the landlord
- Being responsible for paying the remaining rent due until a sub-letter is found
- If the rental agreement has no termination clause, you could "break the lease" and pay a certain penalty
- Credit damage if the landlord pursues an eviction and wins
- Luckily, the courts don’t want to evict you, so they will give you time to pay. You will have five days to respond to the eviction notice; if you don’t respond, your landlord could become the new owner and you can lose your apartment or condo
- You can also end up on a tenant blacklist that will prevent you from renting future apartments or houses in your community- The new owner of your community can also stop you from continuing to live there, and can keep any money you paid on a new agreement
In any case, it has been the law in California since 2004 that if you rent your apartment or house and then "legally break the rental agreement," you are not obligated to continue paying rent. These obligations include paying regular rent, paying for any damages you caused, and paying your landlord any other fees that are assigned in the rental agreement.
What to Do After You Cancel
If the landlord or tenant agrees to cancel the agreement, or if the matter is resolved by a court order, then the practical steps for the landlord and the tenant include the following:
1. Closing the file
If the landlord and the tenant agree to cancel the agreement, then I suggest that the cancellation be put in a written "Consent Termination Order", it is important that the security deposit and the FIRST months’ rent do not need to change hands; a tenant may not have the rent available immediately and since there is a transfer of money involved, a "Consent Termination Order" makes the parties "whole" and eliminates future disputes.
2. Contracting for a new rental agreement
The rent charged in a replacement rental agreement need not be the same as that in the cancelled rental agreement. The tenant may lose the benefit of the increased rent paid, but that is a commercial decision made by the landlord. The landlord may agree to credit the full amount of the prepaid rent towards the new rental agreement, or may pro-rate the credit across the term of the new rental agreement.
Getting Help and Legal Guidance
In any of these scenarios, seeking the help of a skilled attorney to review your lease agreement for ambiguities may help in the interpretation or negotiation of provisions, if necessary. An attorney can also review the circumstances that led to your need for cancelation of the contract to ensure that you have a legitimate reason to submit a request to terminate the contract and that you have complied with required legal procedures as well as the terms of the contract. An attorney can then represent you in communications with the landlord or property manager, negotiate on your behalf and, if necessary, file suit to ensure that you are not held liable under the contract you have with the landlord.
When renting in South Carolina, amicable relationships between landlords and tenants can be critical to ensuring that both parties understand what is expected of the other. Therefore , an original contract should be reviewed thoroughly by both parties before you sign, ensuring that you have a good understanding of terms for rental duration, the circumstances under which a lease can be terminated early, the penalties for doing so, and the obligations that each party has under the contract. If a landlord or tenant has breached the terms of the agreement, isn’t fulfilling its contractual obligations or if a tenant’s need to terminate the agreement is the fault of the landlord, the defender will have the right to exercise any and all available legal remedies. A tenant should never simply walk away from a lost cause, but an experienced attorney can help to prevent or mitigate damage to his credit, can represent him in court, and can ensure that a tenant’s rental rights are upheld in accordance with the terms of the contract and the laws of the state.