Clause libraryLease & Rental

Early Termination Clause: How Much It Really Costs to Break a Lease

Life changes — jobs move, relationships shift, landlords get hostile. The early termination clause decides how much it costs to walk away.

What it is

An early termination clause defines what happens if you leave before the lease ends. Fair clauses charge a fixed fee — typically 1–2 months' rent — and require 30–60 days' notice. Aggressive clauses make you pay rent until the unit is re-rented, with no obligation on the landlord to actually try. Some clauses also forfeit your deposit on top of the fee.

Why it matters

Without a clear termination clause, your only legal exit may be paying out the entire remaining lease. On a 12-month lease at $2,000/mo, walking out at month 4 could cost $16,000+. A reasonable clause caps your exposure to a known number so you can plan.

Sample clause language

"Tenant may terminate this Lease prior to the expiration date upon payment of all remaining rent through the end of the term, plus reletting costs and forfeiture of the security deposit."

What it really means: This is one of the worst termination clauses. You owe every remaining month, the landlord's costs, and your deposit — even if they re-rent the unit the next day. Push for a flat fee instead.

Red flags

  • Owe all remaining rent regardless of re-rental
  • Security deposit automatically forfeited
  • No defined notice period
  • Landlord has no duty to mitigate (re-rent the unit)
  • Termination fee exceeds 2 months' rent

Fair / acceptable

  • Flat fee of 1–2 months' rent
  • 30–60 day written notice
  • Landlord obligated to re-list the unit promptly
  • Deposit returned per the security deposit clause

How to negotiate

  • Ask for a flat 'lease break fee' of one month's rent
  • Add a military or job-relocation exception
  • Require landlord to make 'reasonable efforts to re-rent'

Frequently asked questions

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Not legal advice. For informational purposes only.