How to Break a Business Lease
Although the laws vary from state to state, breaking a lease may have significant financial ramifications and shouldn't be taken lightly. If you absolutely must break your lease, try to work with your landlord as much as possible. Typically, unless your landlord has not lived up to his end of the agreement, you will have to pay to break a business lease.
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Instructions
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Review your lease agreement to learn what your rights are. Look for any provisions such as a sublet or assignment clause that allow you to legally break your lease without penalty. If you are able to sublet your building, do so.
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Review your lease for an early termination clause. This may be an obligation to pay one year's rent or a lump sum in exchange for a clean break. If you have a clause and the landlord has kept up his end of the deal, you will be liable for the early termination fee. However, if you can find a replacement renter, your landlord may elect to waive any fees.
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Speak to your landlord and explain why you need to break the lease. Keep in mind that your landlord needs to be sure she can get her rent. Offer your landlord a reasonable financial incentive for allowing you to break the lease (such as three months rent) and a guarantee that you will help look for a replacement. Or get her to agree that once you find a new renter, you can move out. Keep in mind that your landlord doesn't have to offer you a break, however, if you can continue to provide her with a steady rent income, she may cooperate.
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If your rental space is in a mall or strip mall, contact your landlord's other tenants about moving into your space. If they agree, present this to your landlord.
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Seek legal advice, especially if you believe that your landlord is not maintaining the property. Potholes and other maintenance issues may qualify the property as being untenable. In that case, you may have a legitimate case for breaking the lease without penalty.
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Pay up. If you must break your lease and your landlord won't budge, you are legally obligated to pay any fees laid out in the lease and each month's rent until the landlord finds a new renter.
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Tips & Warnings
Get everything that your landlord agrees to in writing. It is not a step to be taken lightly, but filing bankruptcy may essentially terminate your lease. Consult an attorney before making any decisions of this nature.
