In most cases, a rental lease is a legally binding contract that holds the tenant responsible for rent payments each month for the entirety of the lease period. However, it’s important to note that there are some specific circumstances in which a tenant can break a lease legally, or be excused from their payment responsibilities before the end of the lease period. If you’re a landlord or a tenant in California, you should be aware of these circumstances when a lease can be broken:
1. The property violates habitability standards
All states require landlords to maintain a rental property in a fit and habitable condition, and in California that duty is the implied warranty of habitability set out in Civil Code § 1941 and § 1941.1. You should clarify the specific requirements of your state, but it typically includes:
- Following health and safety codes
- Ensuring access to running water, heat, and working plumbing
- Providing proper waste bins for garbage
- Performing repairs in a timely fashion
- Keeping all common areas clean
If a property does not meet these requirements, a tenant may file a health or safety complaint to the city. In the case of a complaint, a city inspector will inspect the property and determine if the complaint is valid. If the property has any violations, the landlord will receive a notice to fix the issue within a certain period of time.
In most states, if the landlord does not make the necessary repairs or changes within the time period, the tenant may legally break the lease agreement. They must provide written notice of their intention to terminate the lease and must wait a certain number of days before moving out unless the violation is severe. In California, a unit left uninhabitable can rise to the level of a constructive eviction, and Civil Code § 1942 allows a tenant who has given the landlord notice and a reasonable chance to repair to treat the lease as ended and move out.
2. The landlord violates entry or harassment laws
Typically, a landlord is required to give at least 24 hours’ notice before entering an occupied rental unit, which California Civil Code § 1954 presumes to be reasonable, and must also have a legal reason for entering, such as making repairs, inspecting the unit, or showing the unit to prospects.
The tenant may have legal reason to break the lease if the landlord:
- Attempts to enter the rental unit illegally
- Makes continued attempts to enter the unit without proper notice
- Harasses the tenant
Usually, a tenant must obtain a court order against the landlord, and if the court order is violated, the tenant can then provide notice of lease termination. California Civil Code § 1940.2 separately makes it unlawful for a landlord to use force, willful threats, or menacing conduct to pressure a tenant into leaving, and a tenant who prevails can recover up to $2,000 for each violation.
3. The tenant is active duty military
Active duty military members have certain protections under the federal Servicemembers Civil Relief Act, or SCRA (50 U.S.C. § 3955). One of these protections offers the ability to terminate a lease if the tenant receives permanent change of station orders, or deployment orders that require relocation for a period of 90 days or longer. To use it, the tenant delivers written notice with a copy of the orders, and the lease ends 30 days after the next rent payment falls due, with no early termination penalty allowed.
4. The tenant is a domestic violence survivor
Most state laws include protections for victims of domestic abuse or violence. In California, tenants who have survived domestic violence, sexual assault, stalking, human trafficking, or elder or dependent adult abuse may terminate a lease under Civil Code § 1946.7. The landlord has a right to request proof of the incident, which may include a copy of a protective order, a police report, or a written statement from a qualified third party such as a doctor or a domestic violence advocate, generally dated within the last 180 days. Unlike the older thirty-day rule, the tenant is released on 14 days’ written notice and is responsible for no more than 14 calendar days of rent following that notice.
5. The rental property is not legal
If a tenant discovers that they are renting an illegal unit, they may terminate the lease agreement without penalty. Depending on the state, tenants may be entitled to a return of a portion of the rent they have paid during the lease term or additional funds from the landlord to assist in finding a new rental.
What happens if you break a lease without a legal reason?
All landlords and tenants should be aware of the specific lease termination laws in their state, so they can protect themselves or their property. If a tenant terminates a lease illegally, they can face legal consequences such as an eviction or be sued for breach of contract. That said, a California landlord cannot simply sit back and charge for the whole remaining term; Civil Code § 1951.2 imposes a duty to mitigate damages by making reasonable efforts to re-rent the unit, so a departing tenant is usually on the hook only for the rent lost until the place is reasonably re-rented, minus what the landlord could have avoided. Typically, if a tenant wants to terminate a lease early outside of one of the above circumstances, an early termination fee applies.
Frequently Asked Questions
What are the legal reasons a tenant can break a lease in California?
California recognizes several circumstances in which a tenant can break a lease legally: the property fails habitability standards, the landlord violates entry or harassment laws, the tenant receives qualifying military orders, the tenant is a domestic violence survivor, or the rental turns out to be an illegal unit. In each of these circumstances the tenant may be excused from their payment responsibilities before the end of the lease period.
What penalties apply if you break a lease without a legal reason?
A tenant who terminates a lease illegally can face legal consequences such as an eviction or being sued for breach of contract. Typically, if a tenant wants to terminate a lease early outside of one of the legal circumstances, an early termination fee applies. Both landlords and tenants should be aware of the specific lease termination laws in their state so they can protect themselves or their property.
Does a landlord have to mitigate damages when a tenant leaves early?
Yes. A California landlord cannot simply sit back and charge for the whole remaining term, because Civil Code § 1951.2 imposes a duty to mitigate damages by making reasonable efforts to re-rent the unit. A departing tenant is usually on the hook only for the rent lost until the place is reasonably re-rented, minus what the landlord could have avoided.