Looking to Break Your Residential Lease Early Due to the Economic Impact of COVID-19? Read our Best Practices

Being honest and polite in negotiations, knowing one’s rights, securing a written copy of lease agreements and asking for a letter of reference are some tips and tricks for tenants looking to break their residential lease early due to the economic impact of COVID-19. These and other findings are outlined below.

Tip #1: Be Honest and Respectful In Negotiations

•  Realtor.com outlines several tips when breaking a residential lease early due to economic difficulties brought about by the COVID-19 pandemic.
• The number one tip is to be upfront about one’s situation, whether that means being unemployed or wanting to move to a cheaper place to rent.
• The article points out that many landlords might experience skipped or late rent payments at this time so honesty from tenants might be highly appreciated.
• Tenants can negotiate breaking a lease early for a lower fee or forfeiting their security deposits.
• Tenants can also offer to help find a new renter in return for breaking the lease early.
•  Brick Underground.com recommends a similar transparent approach when negotiating with landlords regarding lease agreements.
• Attorney Mark Hakim of Schwartz Sladkus Reich Greenberg Atlas commented, “You want to approach the landlord in a way that they can see where you are coming from, and that you are not just looking to benefit off the back of your landlord.”
•  6ABC reported that a couple in Philadelphia who suffered unemployment were able to negotiate with their landlord not to pay a $3,500 fee for breaking a residential lease early, in spite of an initial demand to do so.
•  Realtor.com pointed out that landlords are more flexible at this time to protect their cash flow and may consider breaking a lease early for an unemployed tenant in order to accommodate an employed renter.

Tip #2: Know Your Rights

•  Brick Underground.com reminds tenants to know their rights in order to come to the best agreement about a residential lease.
• Several states including Pennsylvania, Delaware and New Jersey among others have prohibited foreclosures to protect tenants who have been economically affected by COVID-19.
• Many jurisdictions have also suspended civil courts which prevents landlords from filing a rent court hearing.
• The Orange County Register advises tenants to read the lease agreement and check if there is a provision that allows early termination for a fee.

• Tenants can also check their rental insurance policies to determine it if includes provision for a national emergency such as a pandemic.
• OCR reminds that extreme circumstances can also void a residential lease.
• These include danger to personal safety or a problem in the residential property not addressed by the landlord.

• However, such ‘habitability claims‘ are best supported by legal counsel and extensive documentation as evidence.
• Likewise, tenants are also discouraged from breaking a residential lease without legal justification as they might suffer credit damage or court-imposed penalties.

Tip #3: Secure A Written Copy of Agreement

•  Realtor.com advises to get all agreements between a tenant and their landlord in writing.
• The article advises against trusting nonverbal agreements especially when it comes to breaking lease early.
• Once a lease agreement is reached, a written document must be signed by both parties.
• Without a written copy of agreement, the tenant’s word will have to stand against their landlord’s in case of legal complications.
•  Best Best & Krieger Law also suggests considering confidentiality in lease negotiations to prevent tenants from comparing notes.

Tip #4: Ask For a Letter of Reference

•  Realtor.com encourages tenants to secure a letter of reference during a negotiation to break a negotiation lease early.
• This is crucial to finding a new lease after the previous one has been successfully broken.
• A letter of reference will greatly help tenants in search of a new place to rent especially if they have suffered unemployment due to COVID-19.

• New landlords can check tenants’ background virtually so a good reference from a previous landlord can give them a headstart.
• Tenants who want to break a residential lease early can help secure a good reference from their landlord by finding a replacement tenant with equally good references.