How to Handle a Tenant Breaking the Lease Early

By PropsManager Team | Dec 17, 2025

How to Handle a Tenant Breaking the Lease Early

1. The Lease Buyout Clause

Ideally, your lease has a "Buyout Fee" (e.g., 2 months' rent) that allows them to terminate early without penalty. This is the cleanest exit.

2. Duty to Mitigate Damages

In most states, you cannot just charge them for the remaining 6 months of rent. You must make a reasonable effort to re-rent the unit. Once a new tenant moves in, the old tenant's obligation to pay rent stops.

3. Tenant Responsibility

Until a new tenant is found, the old tenant is usually responsible for:

• Rent.
• Utilities.
• Marketing costs to find a replacement.

4. Security Deposit

Do not automatically keep the deposit as a penalty unless the lease says so. The deposit is for damages and unpaid rent.

Conclusion

Work with the tenant. An angry tenant might damage the place on the way out. A cooperative tenant will help you show the place.