The Essential Guide to Legally Breaking a Lease in California
Lease Agreements in California: What You Need to Know
Lease agreements in California are legally binding contracts between a landlord and the tenant that lay out the terms of the rental arrangement. In California, these agreements generally must be in writing if the rental term is longer than one year. Both the landlord and the tenant are required to sign them before the parties move into the unit. With one exception, the lease agreement should be signed by both the landlord and tenant to be binding on both parties .
California lease agreements should address the following key issues:
• Names of all adult residents and their relationship with each other
• Monthly rent amount
• Which utilities and services are paid for by the landlord or tenant
• Terms of tenancy: duration of lease and renewal options
• Occupancy rules: maximum number of guests, children and pets allowed to live or visit
• Required deposit amounts
• Repairs: who is responsible for making certain repairs and maintaining certain areas of the unit
• Rent increases and guidelines for rent increases, where applicable
• Subleasing restrictions and whether sub-leases are with landlord approval
• Notice period required for the termination of lease
• Termination of tenancy: procedures for breaking the lease early, what constitutes a lease violation and how to handle a rental increases
A lot of landlords write their own leases and use generic forms available online or at office supply stores. These lease agreements may not contain all the required disclosures as mandated by California law. For example, they may not disclose the existence of lead-based paint or contain provisions required under the California statewide rent control law. Although most of the details of the lease must be followed, there may occasionally be grounds to negotiate portions of lease.
Legal Grounds for Breaking a Lease
A landlord or property owner may have violated health and safety codes that are vital to community health. This violation could include mold, broken smoke detectors, electrical fires, leads, and plumbing issues. Additionally, if a property turns out not to be habitable or lacks essential amenities such as running water and heat, it is possible to break the lease early. A tenant does not have the right to break a lease for minor code violations, however.
If the landlord has violated or has threatened to violate or interfere with your right to peaceful enjoyment of the leasehold, then you may have a legal basis to immediately terminate the lease without penalty. For example, a physical threat can be seen by a judge or jury as an unlawful attempt to intimidate you. If you are a victim of domestic violence and require to break the lease, you are within your rights to do so.
What to Do Before Breaking a Lease
If you live in California and are thinking of breaking a lease, you should always take several important steps before proceeding. Mainly, you should document any issues you may have with the rental property, whether they be maintenance-related or related to the actions/inactions of your landlord. Along with good documentation of your own, you should be sure to notify your landlord of the issues right away, either in person or in writing, preferably by certified mail (and always in writing), which will not only give you a paper trail should the issues go unresolved but also information that can be used in your case. You may want to even give your landlord a chance to fix the issues you have or return your security deposit before moving forward with breaking the lease, so be sure to give your landlord at least 30 days to address any problems you have found. Although many landlords will not terminate a lease due to issues that you may be having, it’s still worth it to file a complaint against your landlord if they are not following the law or fulfilling their obligations. And even if your landlord doesn’t want to terminate your lease and let you out of your obligations to them, you may be able to deduct the amount of your security deposit due from you from the cost to fix the issues, if they have cost more than your security deposit. You may be able to do both, or just one. A landlord has an obligation to maintain the dwelling, and if they are not doing so, that could be rental housing fraud. It doesn’t mean you get out of your obligations to them or your obligation to pay rent, but it does provide leverage in negotiations about the amount of your security deposit you owe them. Even if the landlord agrees to give back all or part of the security deposit, you will still have to pay any remaining damages out of pocket. You will need to pay the landlord the amount still owed to them in monthly installment payments if you do not have the funds, as failing to do so will still result in eviction or other legal action from them. You will also need to pay any moving expenses you may incur on your own. The solution to a problem cannot be more expensive than the problem, or else you will learn nothing and simply have to live with any issues. If you break your lease, you may also be responsible for paying a release fee of up to two rental payments, the amount of which will be determined by the lease that you signed. The landlord is obligated by law to attempt to mitigate any damages they suffer due to your failure to fulfill the terms of your lease, such as by reducing the amount of rent due out of your pocket by the amount of rent they received from a new tenant, or by attempting to re-rent the unit out for the remainder of the lease.
Engaging with Your Landlord
Once you have researched your options, it is time to start negotiating with your landlord. In order to get it right, consider the following tips: Approach your landlord with a request to renegotiate your lease. This means that you plan to stay just as long as the first lease term, but with more favorable terms, such as a lower monthly rent. Additionally, you can ask to add (or remove) a termination clause to the lease, so that you have the option of terminating the lease after an additional 30-, 60- or 90-day notice period. You may believe that the landlord will appreciate your offer, given that they would face additional costs if they needed to re-rent the unit. This is especially true if the local vacancy rate is high and they have trouble finding tenants. Approach your landlord to terminate the lease early. This means you will be leaving before the lease term is up. You should be prepared to pay a lease termination fee, which is often the cost of rent for several months. While this may be painful, you need to be prepared to commit to leaving the property in order to successfully negotiate this termination. If you can’t negotiate with your landlord without an attorney, consider hiring a real estate lawyer. Additionally, this may be necessary if the landlord has refused your request to terminate your lease early and you are still bent on vacating in the near future.
Possible Outcomes of Breaking a Lease
If you break a lease, be prepared to face legal and/or financial consequences. Potential consequences include a dollar amount owed under the lease, forfeiture of your entire security deposit, and damages that could hurt your credit score, such as collection agencies fees and attorney’s fees (Lawful fees) and late fees (in certain circumstances).
Your lease terms define the obligations you agreed to. Damages are sometimes set forth in your lease agreement. You might owe rent from the date you breached the lease until the date it would have otherwise expired ("broken lease damages"). Perhaps you owe late fees and/or Legal Fees. The question is whether you owe a specific sum of money or whether you owe money based on the facts of your particular situation .
The landlord has a duty to mitigate damages arising from a breach of the lease. The landlord must take reasonable steps to minimize the damage and loss arising from the breach.
For example, if your lease required a $5,000 penalty for early termination, your Landlords’ duty to minimize damages might be satisfied by a $2,500 penalty. However, it is not clear whether your Landlord has a duty to replace you with a renter who pays fair market value for the rental property.
Neither the passage of time nor a tenant’s failure to pay rent limits a landlord’s ability to seek damages from the tenant for breaches, although the amount of damages may be limited if the amount owed exceeds the total amount of rent that would have been paid over the term of the lease.
Consulting an Attorney
If you don’t fall into one of the previous categories – that is, if you are unsure whether you are legally entitled to break your lease – then you may want to consult with an attorney. An experienced landlord-tenant attorney can assist you in determining whether you have a legal basis for breaking your lease. If you do not, the attorney may be able to assist you in negotiating with your landlord to allow you to get out of your lease early.
Sometimes, it becomes necessary to seek legal counsel regarding a lease issue. An attorney may be able to provide legal advice to help you navigate a dispute with your landlord. For example, a landlord might take you to small claims court for amounts the landlord claims you owe under the lease after you leave the rental unit. An attorney can help you determine whether the landlord has any legal basis to sue you or whether there are any defenses you may have that would be successful in court. You may be able to resolve the issue before having to go to court if you have a compelling legal argument as to why the landlord’s claim against you lacks merit. Furthermore, an attorney may help you adequately settle with your landlord even if it is too late to formally break your lease under the law or you do not have any legal arguments as to why you need to break the lease early.
Common Questions
Q: What are the penalties for breaking a lease in California?
A: Up to a month’s rent in most cases, possibly more.
Q: Can a landlord charge me for broken items I didn’t break?
A: It’s possible, but your landlord must prove that you broke something. These proofs typically include evidence that it was recently broken, it was in good condition before you got there , etc.
Q: How long does a landlord have to return my security deposit?
A: A maximum of 21 days after vacancy or termination of lease. Longer if the lease allows for a cleaning service, and 60 days if you don’t return the keys.
Q: Am I ever allowed to break a lease without penalty in California?
A: Yes. Cases involving military personnel, domestic violence, sexual assault, stalking, and elderly residents with dementia are all examples where leases cannot be enforced if broken.